Wholesalers buy a home at a bargain price, and then sell it to someone at a higher price in order to make money. The job of a wholesaler is to find sellers who need to sell their homes because they are going through a divorce, have two properties and can't afford the two mortgages, or are motivated to sell for some other reason such as not wanting a foreclosure on their credit records. If you know how to find motivated property owners and can create a list of hungry buyers, you can run a successful real estate wholesaling operation.
Determine the area in which you want to buy homes. If you want to wholesale real estate, you need to figure out the neighborhoods where homes are selling. Call a few realtors in your area who have "for sale" signs posted and ask them in which areas they have clients looking to purchase property. The realtors should be open to sharing this information with you because they understand that you can sell a home to one of their clients in an area in which they want to buy. Write down the areas they tell you are in demand, as you now know there are buyers who will buy properties you get under contract in these areas.
Send out postcards. Find motivated sellers in the areas that the realtors told you were in demand. Buy a list of all the absentee owners (owners who own property in that area but live elsewhere) in your target areas from a list provider you can find on the Internet. Send postcards that let these owners know you will buy their homes at a fair price if they will call you by a certain date.
Talk to the sellers who call. Find out if these sellers are motivated to sell you their homes at 50% of the aqfter-repaired value. Keep in mind that most sellers will not be motivated to sell their houses at this rate, but you only need one motivated seller to find a good deal. Determine how much work the house will need by getting a free estimate from a local handyman. Find the value of the home by talking to the realtors in the area who have clients to which you will sell the home.
Get the property under contract. Once you have found a motivated seller, put the property under contract by finding a real estate attorney to walk you through the transaction.
Sell the home to one of the realtor clients for more than you paid. Be prepared to let the person who is buying it from you make most of the money on the deal, as they will be the one making any repairs and doing most of the other work.
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