Buying and selling real estate as an investor is easy, right? Not really. Newbie real estate investors often become overwhelmed at just how much is involved in the process of any real estate transaction.
Wholesaling is a great alternative to help you learn what makes a great deal, understand the market and develop the negotiation skills necessary for all types of real estate deals.
Here are the four best ways to wholesale properties in NY.
Develop a Network of Buyers and Sellers
This might sound like common sense, but too many new wholesalers fear that they are competing with other investors. The reality is other investors are your best allies in the wholesale process. Not only will a network of other wholesalers, frequent sellers and rehab investors become a resource for you to find and unload opportunities, they will also be an asset in learning more about wholesaling and investing in general.
Join a real estate investment club. Attend meetings and start to establish relationships with those in the immediate and surrounding areas. One of the key benefits of a club is being able to find investors who have or want opportunities just outside of your immediate areas. This could be a valuable group as you expand your business.
Present Buyers With A Plan
Make it easy for a potential buyer to see the value in the wholesale deal. Prepare a detailed market analysis of the property, the market, and the potential rehab cost. Make it easy for the buyer to see the return on investment and make a quick decision. Sure, the buyer will want to do his own due diligence but you’ll get more interest in any property by simply having all the details in order.
Think of it this way, a person buying a stock doesn’t usually just go on the word of his stockbroker. He looks at the essential numbers before making a final decision. Real estate investors are savvy and successful because they understand how to take any one property to turn a profit. You’ll get a better reputation for wholesaling when buyers know most of the work is already done for them and they simply need to confirm your research.
Having partners is a step beyond just wholesaling and networking. Partners become an integral part of the deal process. While you might not want to share profits, it makes sense to do this if you can scale up the operation. If you are good at finding distressed properties and have a partner who can present the package to sellers, you both can focus on the areas where you are best suited. This increases your chances of finding and obtaining more properties to wholesale.
As your business grows and you expand into other areas of real estate investing, the partnership also grows to ease the overwhelming burden of any one transaction. It’s a simple divide and conquer approach with each person great at what they do and focusing on strengths while learning more about their weaknesses.
Invest Back Into Your Business
Making money is priority one. Even though you aren’t investing the big bucks into a real estate rehab, make sure you don’t think that wholesaling has no costs involved. Sure you can keep costs to a minimum, but investing in your company allows you to scale up and build the business in your area.
How do you invest in your wholesaling business? Pay for real estate classes and join investment clubs. Spend money on advertising and presentations. Hire an assistant to help you maintain a professional image and spend time in the community networking. Wholesalers need to be out and about to know what is going on and find the great deals.