The simplest way to define what is wholesale real estate would be to say that it is the sale of real property, land, houses and even mobile homes to another party where the seller agreed to sell it at a deep discount, typically well below the average property in the same area.
Read on to learn more about what is wholesale real estate is and what is involved. Could you see yourself as a real estate wholesaler?
There are lots of reasons a homeowner might be willing to take less for his house. Invariably the most common reason is that the property is in disrepair and their finances are in the same sorry state.
Not every homeowner can put the money into their property to make it appealing to the mass market, and some of these sellers are willing to accept a lower offer than the nicely fixed up house on the next street over.
It can be their real estate taxes are overdue, or maybe they need to sell fast in order to relocate. When a homeowner moves to Heaven, often the heirs just want to sell it quickly. Or perhaps there aren't any heirs? The whys make for a long, long list.
Thinking back to when I first heard the term wholesaling at a real estate investor's meeting, I felt curious to know what is wholesaling real estate, what it really was, and how the word wholesale could be applied to property.
There were other wholesale real estate terms I just couldn't wrap my brain around either, such as:
So getting back to what is wholesale real estate. . .
Fast forward years to today, and over time I have learned what all the odd terminology means and how to wholesale properties. In fact, all kinds of properties from vacant land to mobile homes. There have been some nice surprises as well as maddening deals.
Absolutely! Provided the seller wasn't coerced into selling, an owner of any real estate can make informed decisions on the transfer of any property they legally own. That includes Executors of a probate, too.
Here's link to where you can easily check your state's outlook on wholesaling and more.
Every state has lots of opportunities, both high end neighborhoods and working class. You can't know the lives or circumstances of the homeowners behind the doors. Your offer to buy just may be a blessing in disguise.
If you are thinking about starting a wholesale real estate business, it's best to start close to home.You know your area, and there will be less of a learning curve.
As my own wholesale real estate business grew, I grew smarter along with it, and this comes with experience -- you'll get there soon, if you decide to put the time into wholesaling. I went from a one-person do-everything business (and some days were way better than others), to a outsourcing many of the tasks to a hand-selected team, and the wholesale real estate business has run smoothly ever since.
As Ron LeGrand, one of my many mentors, likes to say, "The less I do, the more I make." But, we all need to Strat at the beginning.
Every market, whether real estate is really hot (a seller's market) or when there seems to be a for sale sign on every street (a buyer's market) offers enormous opportunities -- if you know where to look. That's because there will always be homeowners who really need to sell, and investors who will buy real estate sometimes sight unseen.
Now that's a topic for another day, because there are so many different ways to find wholesale deals. Some deals drop in your lap while others take time to cultivate.
Just know that there are lots of people out there that are desperate for you to come along and make them an offer to buy. They are truly in pain right now, and if someone doesn't reach out to them, their worries may not end. And that would be a shame.