Wholesale real estate investing is a fantastic way of kickstarting your real estate career. And it is also one of the most efficient ways of buying properties with desired results. It promises a reduced financial risk, time commitment and high commission for starters. It also offers final buyers the opportunity to buy to their taste and goals. With the increase in wholesale property investing in recent times, it is quite unfortunate that many are still left out of the loop, without a full understanding of what it is or how it works.
Why Invest In Wholesale Properties?
A wholesale property is certainly nothing less than one of the best ways for investors to break into the world of real estate investing. In the simplest form, a wholesale property is a home currently owned by a distressed homeowner. For this reason, it’s a great target for investors looking to wholesale homes or for buyers looking for cheap properties with minimum repairs. The concept of wholesaling doesn’t refer to the home itself, but the strategy used by investors. This means, a wholesale property is a property being managed by a wholesaling investor.
Because of the profit and benefits of wholesaling, wholesalers do two things: Contract assignment or double closure. Generally, assigning contracting is typically preferred over double closure due to less stress and straightforwardness.
In contract assignment, wholesalers make a deal with the owner that gives them the right to buy the house, and then sell said rights to another buyer. Double closure on the other hand, will have the wholesaler buy the home, prepare for good sales, and then sell it as fast as possible. Though the two wholesale property strategies are quite different, they still belong to the same family.
Knowing about the wholesale real estate investing isn’t enough, as many people are often posed with the question of how to find a wholesale property for sale.
Finding A Wholesale Property
Wholesales are a golden chance for investors to acquire deals at a good price. However, wholesales aren’t found as easily as their traditional counterparts. Rather than wondering and wandering, people who are interested in getting a good wholesale property may try some of the following methods:
Pre-Foreclosure
This is a good source of property investing. It mostly requires the approval of the bank to complete the transaction. Most people often think the banks should be eager and motivated to give approvals. However, in some cases the banks delay sales, and sometimes restrict buyers from reselling or assigning a short sale property within a specified period of time.
As a wholesale investor interested in buying wholesale properties, it is quite important you carry out your research well. Always examine a particular bank’s short sale contractual language to ensure the option of wholesaling. So, it is quite important for an investor to understand a real estate wholesale contract. Click here to find properties with minimum repairs.
Private Sellers (MLS)
These are properties owned by sellers who sign a listing agreement with a realtor. Though these are often easy to find and more profitable, it’s crucial you carry out due diligence to find the right property for your investment goals. Your goal is to get an investment property for a cheap price, not every MLS fits into this category. This wholesaling process can be more challenging due to the realtor involved; however, the right property and motivated seller puts you on the right track.
Outdoor Signage
Outdoor signages are also a good method for finding investment properties for wholesaling. Outdoor signage like banners, billboards, posters, and vehicle magnets. This method often gives investors the opportunity to enjoy untapped wholesale deals.
Takeaway
There are other diverse methods of finding a wholesale property, however very few of them guarantee the desired result. It is often advised to work with a company that specializes in wholesale investment properties, in order to make the most out of these diamonds. This helps you as an investor to only invest in properties with high-profit prospect. Recall that due diligence is key, and this can be better achieved with an established setup.
You can reach out to InvestWay Group today; the best Wholesale Property Company in Tampa, Florida.