When you are starting your real estate wholesaling business, it can be hard to know whom to trust when you are looking for information about the business. Much of the content on the Internet is just filler to make websites look established and impressive. Today, however, we are passing along four ideas or concepts that have worked for our team, and we are sure we will provide you with a good start on your business.
Multiple Listing Service (MLS) Offers
The MLS is an online database of properties on the market or ones that recently sold. And this site is only offered to real estate agents. So you need to be a legit, licensed agent to use this massive resource. But as a real estate professional, you have complete access for FREE. That one feature makes this a superb resource for a new wholesaler looking to launch a business. The process does require some time and effort, but those are also two cost-effective items that you have in good supply as a new business owner. So put this considerable list to work for your business.
The United States Department of Housing and Urban Development provides another free online resource that is great for lead gathering. These real estate owned properties, REO’s, are bank-owned and did not sell at the foreclosure auction. Because banks are not in the business of holding and managing real estate, they want to move these properties for whatever amount they can get. This means deep discounts for you. Unlike the MLS, you don’t need to be a licensed realtor to access or purchase these properties. So plan on making a significant number of offers to close a few deals a month
Online And Offline Auctions
Auctions are a great way to find deals. But, you need to be sure to complete your evaluation to make sure that you can make some money on the property. Don’t get overly excited and make an offer before your due diligence is completed. And because most of the properties are not open for inspection before purchase, leave yourself enough wiggle room to account for any surprises you might encounter after the purchase.
Real estate investing is a people business. And your network of colleagues, friends, family, associates, and prior business contacts will all play a part in your wholesaling network. You need to be that person that everyone turns to when they hear about a real estate deal. Many of these words of mouth deals come to you at a very reasonable rate. To grow your network, it is also important to commit to attending one local real estate meetup or function each month to strengthen relationships and begin to build new ones. As time permits, make your presence known on real estate forums and sites for even more contact with other investors in various locations.
These four strategies are simple and effective. Members of our team have been following these guidelines for years and have found that with hard work and diligence, success is sure to follow. Best of all, there is very little money required to start your wholesaling business using this model. As a new business owner, sweat equity is the best way for you to invest in yourself and the future of your business.