In this article we're going to discuss wholesaling real estate property after 2020. We all know that in a way, the world changed after 2020. But did it change the way we wholesale real estate at all? Yes? No? Maybe? Let's talk about it in the article. I'll address wholesaling real estate this year and how you can increase your chance for success.
Wholesale Real Estate Properties – What is it?
Wholesaling real estate properties is a process in which a person finds great, off-market discounted real estate properties, and then sells the rights to these deals to other Real Estate Investors.
Wholesaling can often be the most popular real estate investing strategy because it requires little money to start and it does not require a lot of experience. Many people get confused with the idea that wholesaling real estate is actually selling real estate. The bottom line here is: You are selling a real estate contract. NOT the real estate itself.
Wholesaling Real Estate – With No Money?
Is it possible to wholesale real estate with no money? It depends. Personally, in many cases, I like to abide by the phrase “time is money.” therefore, a relevant question would be: What is your time worth?
Asking this question, brings a relevant perspective because no-money down strategies definitely require time and work.
What kind of work?: Hard work. In my experience, wholesaling real estate required constant work and constant personal development.
Sounds Simple – What’s The Catch?
Real estate wholesaling is very simple in philosophy, But I've got to be honest here, simple is not easy. And that simplicity itself isn’t so simple, that people tend to complicate it. This is the same with real estate wholesaling. The catch? The catch is that you have to work hard to make this business work.
Of course there are tools, processes, and systems that can expedite your success but no matter what, you are going to need to put in the work to make this business work.
It is not often that sellers are looking to let their real estate go at a deep discount. However, this does happen, and when it does happen you can be in position to help solve a problem and be paid handsomely for your service. Easy?! No! Worth it?! Definitely!
Not bad, right?
Where To Find These Deals?
There are several places you can find these discounted deals.
I will list a few I am familiar with below:
Driving For Dollars – driving for dollars is when you drive around a specific target area or neighborhood looking for potential distressed real estate properties. Things to look out for when driving for dollars, boarded-up windows, legal notices from City and neighborhood officials, unmaintained grass and lawn areas. And, a favorite is homes that do not have a trash can in front of their residence on trash pick-up day. This is a sign that the home is vacant.
List Pulling – List puling is kind of what it sounds like. This method you pull a list of real estate property leads. For example, you can pull a list of vacant properties, you can pull a list of properties with code violations, you can pull a list of properties behind on real estate taxes, high equity, etc.
You can pull these lists from online sites such as RedX.com, Listsource.com, and others.
Online – You can find sellers that are interested in selling their houses online. some comments sites for finding these types of real estate leads would be:
- Facebook Marketplace
I'm an advocate of digital and online marketing so I'll always be a fan of generating leads online. It's great to familiarize yourself with learning online strategies because these skills can be applied to other businesses as well. If you are a person who would rather not learn to generate your own leads online it might be best to hire a Virtual Assistant (VA).
$5,000 – $10,000 or More Per Deal – How Much Money Can I Make?
Wholesaling can be very profitable, but it's not a rich quick scheme or business. One of the core mechanisms of wholesaling is marketing. You must become skilled at marketing or partner with someone that provides a great marketing system. Wholesale deals range, but for the sake of this article, let's say the average wholesale fee will be about $5000.
Can I Wholesale Real Estate Without A Coach or Mentor?
here's the thing, how many people try to do the real estate business by themselves, and why you can't answer that we have success doing this business by yourself, the only true shortcut to success in any business including specifically real estate is a mentor or a coach. a mentor or coach can help you succeed because they already have success themselves.
in addition to this success that they have already acquired, they also have a network of successful people around them. at any time this mentor or coach can tap into their network to help you buy a deal, sell a deal, make that one connection that you need. So even though a mentor coach is not necessary I highly recommend one to shortcut your path to success in this business.
Several years ago, I paid $3,000 for my coach. at the time this was a steep investment, but I do not regret it, it is the prime contributor to my success. If you are interested in coaching, check out the linked image below on how to choose the best real estate mentor.
Many times people try to get involved in real estate with no financial commitment or financial investment. Do not be one of these people because it will hold you back. Real estate investing is exactly what it sounds like: INVESTING! Do not be afraid to invest in education, books, mentorship, coaching, masterminds, and other necessary real estate tools.
Real Estate Wholesale Deal Overview – In 4 Steps!
- Find a distressed property.
- Meet with the seller and resolved their problem
- Get the property under contract for a deep discount.
- Sell the contract rights to another real estate investor or buyer for a fee.
Of course each of these steps have “substeps” in between, but this will come with education. When I first started wholesaling, I was able to shortcut my way to success by paying $3000 for a personal mentor.
I do highly recommend a mentor, but I also understand that not everyone is in position to find a mentor. For those that are interested in mentorship, I’ll be putting together an article on how to successfully find a real estate mentor.
This page is informational only, for those looking to explore real estate further. Stay tuned for the upcoming article here on my suggested real estate wholesale tools.
Comment below if you found this article helpful? What got you interested in wholesaling real estate?
Jerome Lewis – Digital Real Estate Strategy