Six Easy Steps to Get Paid Now Wholesale Real Estate
If you’re interested in generating immediate cash flow by learning how to quickly control and then wholesale real estate, follow these six easy steps to success based on the refined systems and checklists used to manage the largest national wholesale business in the world.
find offers
The first step is to find wholesale deals. This is typically done during our daily marketing checklist, where you post marketing for sellers to call you about the property they have for sale. When just starting out or to generate a quick influx of business, you can also search for sellers directly by contacting people who have properties for sale on websites like Craigslist.
analyze offers
Once you’ve opened up discussions with the seller, it’s time to really look into the details of the property and the seller’s situation to determine if the property would be a good candidate for wholesale. Not all properties are good candidates for wholesale, as your investor buyers expect to purchase properties at a discount and/or in excellent condition. Of course, if you are operating your wholesale business as a wholesale/retail business where you buy at or slightly above wholesale and then sell to retail buyers, your transaction analysis criteria will be different. Deal analysis is usually done in the seller checklist when you’re working on your research and in the early sections of deals.
negotiate offers
Once you’ve analyzed the offer and it meets your basic offer analysis criteria, the next step is to negotiate your offer with the seller. Your ability to negotiate win-win transactions will be a major contributing factor to your success in this business. The negotiation check on the deal is done during the make offer section of the seller checklist.
Control Offers
When selling wholesale real estate, you will generally control the property either through a purchase agreement or an option on the property. If you have a real estate license, you can also control the property with a listing agreement. Having control over the deal allows you to market the property to find a buyer.
sell offers
As a wholesaler, you will typically sell the rights you own in the deal and not the actual property, but there are exceptions depending on when and how you have structured the deal. By selling the right to have someone take over your contract to buy the property, your ultimate buyer will ultimately buy the property from the seller. If you were controlling the property with an option, you may be selling your option to purchase the property. This is usually done when you work with your buyer list while working with the buyer checklist.
charge fees
The goal of any for-profit business should be to make money, and you typically make money as a real estate wholesaler when your ultimate buyer closes on the property with the seller. Depending on how your legal team and the title company suggest you structure it to comply with local and state laws, you will likely charge an assignment fee or a fee to clear the title. Your attorney and the title or escrow company can help you structure it in a way that ensures you are completing the transaction legally, honestly, and ethically.
Conclusion
By following these six easy steps, you’ll be able to find, analyze, negotiate, track, sell, and collect fees on wholesale real estate deals in no time.