Most investors choose to become a real estate wholesaler before anything else. At the very least, wholesaling has become synonymous with the first step of investing in real estate; it can be the fastest, easiest, and most risk-averse exit strategy when executed flawlessly. That said, carrying out the perfect wholesale isn’t something that will happen overnight. A truly great real estate wholesaler isn’t born; they are created. More specifically, becoming a real estate wholesaler will require a lot of hard work, a mind for due diligence, and a good system to follow. Having said that, here’s a brief outline of the steps it will take to become a successful real estate wholesaler:
Find The Buyers: Traditionally, real estate investors will need to have a deal lined up before they can do anything, but wholesaling is the exception. Even before finding a deal, it’s good practice for wholesalers to have what the industry calls a buyers list. As its name suggests, a buyers list is a list of potential buyers for future deals. In a perfect world, wholesalers will already have buyers for the deals they will have in the future. That way, they can assign their contract and close the deal as soon as possible. That’s an important distinction to make: lining up buyers first will make wholesaling that much easier. This is where having a trustworthy network comes into play. Subsequent investors on a quality buyers list will be ready and willing to take the deals you send their way, all while providing you with a little extra money.
Find The Sellers: It should go without saying, but there is no wholesale deal without a seller. Therefore, the next thing investors should do after lining up buyers is finding a property worth wholesaling. There’s no difference between finding wholesale properties and rehabbing properties, only that wholesalers need to be fully transparent and clearly define their role in the transaction. After all, the property will probably be wholesaled to an end buyer who will end up rehabbing it.
Connect The Interested Parties: Once a real estate wholesaler has two interested parties, it’s time to execute one of two strategies: the double close or the assignment of contract (each of which we will go into detail about later).