Start a Wholesale Real Estate Business
An Hour A Day Is A Healthy Start Towards Full-time Wholesaling
You can start a wholesale real estate business anywhere, anytime without any money. Really, that's how I got started in wholesaling. I was new to the area, and was offered an opportunity to buy a distressed property at a deep discount.
All it takes to start is to do one simple task per day, and you'll be surprised how fast your wholesale business grows. But is wholesaling for you?
Insights On What a Wholesale Real Estate Business Really Is -- Or Isn't
In the simplest terms, having a wholesale real estate business simply means you find property, houses, vacant land or perhaps mobile homes that the owner is willing to sell at a discount from what the current market bears.
Once an agreement is made between you and the seller, a purchase agreement is then filled out, and both of you will sign it. The purchase agreement, sometimes called a contract for deed, spells out all the details that you and the seller discussed and agreed upon.
What you do with the property next is 100% up to you. Some of your options will include:
- Selling and assigning your purchase agreement to someone else.
- Completing the purchase, as agreed, and then selling the property for a profit -- with our without fixing it up.
- Completing the purchase and renting the property.
- Move in and fix it up as you live there. This is also known as House Hacking.
Anyway, I ended up assigning my first contract to buy to an investor, and I made $5,000 with this transaction. I was hooked.
Pros of Starting a Wholesale Real Estate Business
- You can start a wholesale real estate business without cash, or even a real estate license. The hours are good, because you work when you have the time. and you can choose the neighborhoods you are most interested in.
- Acquiring real estate by finding wholesale properties is a brilliant way to begin your investment holdings. Selling off wholesale deals to others is a smart way to earn money right away.
- When you decide to start a wholesale real estate business it's a fantastic method to grow your real estate portfolio.
- A wholesaler is not stuck behind a desk in a dead-end job. There are a lot of ways to grow here.
Some Disadvantages Of Wholesaling Real Estate
- The biggest complaint I hear wholesalers talk about is the lack of finding wholesale real estate deals. Sometimes you must be creative. Here are some quick ideas on how to find free wholesale deals.
- The income from a wholesale business can be spotty. So it's not a business you want to jump into without some savings to tide you over until you get into the rhythm of wholesaling real estate.
- Putting in the time to find the deal and take it to closing. If you work full time, you'll need to carve out a few hours to dedicate to your new business.
The legalities of wholesaling real estate vary from state to state, and most states are fine with the wholesaling business. It's suggested that you check your state's regulations before you start a wholesale real estate business.
Is wholesaling real estate legal? Find out with this link.
Should You Start A Wholesale Real Estate Business?
At the end of the day only you know if you have the personality it takes to start a wholesale real estate business. Consider yourself a good fit if:
- You enjoy helping others.
- Networking comes naturally to you.
- Being your own boss is important to you.
- Like putting puzzles together.
- Have pretty good organizational skills, like managing your finances and keeping a calendar.
Also consider knowing that people will be counting on you to follow through, and you'll need to be available to answer questions.
Some light research will be needed, things like knowing zoning and quick estimates of possible repairs to bring any distressed property up to standard. Most of this you will learn as you go along. Don't be afraid to tell someone you don't know something, but will find out. That shows character, and you will get respect for it.
When you are ready to learn more about Wholesaling Real Estate as a viable business, these ideas below will get help you start a wholesale real estate business in minimal time.
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Important! Find out if wholesaling real estate is legal in your state here.
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