Wholesaling real estate acts as a matchmaker of sorts between cash buyers and home sellers. It’s a short-term investing strategy that can generate generous profits in a shorter time than most other investment strategies.
Before you get involved in wholesaling real estate, it’s crucial to understand how the process works and how you can experience the most significant degree of success. Here are some essential steps for finding vacant and abandoned properties that you can wholesale.
What Makes a House Vacant or Abandoned?
It is crucial to know how to find vacant and abandoned properties if you plan to get involved in wholesaling. Vacant properties are properties that have been intentionally abandoned for one reason or another. This means that the home’s previous owner abandoned all ownership responsibilities, including making mortgage and tax payments and providing routine maintenance duties for the home.
The official definition of a vacant or abandoned house may differ by city or state. It is essential to check with your local area to determine what legal qualifications must be met for a house to be considered officially abandoned.
Using Technology To Find Vacant Homes
Technology is available to help you find vacant homes in different areas. This can make the process much easier and help you locate properties quickly. Wholesaling real estate can be highly competitive, so identifying abandoned and vacant properties are essential for your success.
Investing in technology that can help you quickly find vacant homes in targeted areas is worth the money for people serious about wholesaling. The main drawback associated with wholesaling is that it can be challenging to find properties you can wholesale. Searching manually for these types of homes online can be time-consuming and difficult. Technology helps fill this void by allowing you to search within a database for abandoned homes that you can wholesale.
Locating Vacant Property Owners for Wholesaling
BatchLeads is an all-in-one platform that provides residential lead generation. It makes it easy to identify abandoned homes as well as property owners. This tool makes it simple to target motivated prospects from whom you can buy and whom you can sell. You can use the tool to search for properties by:
- Mortgage rate
- Year built
- Tax status (including properties that are behind on taxes)
You can also filter by storm data and property images. The database is very accurate and can potentially provide a competitive advantage over other real estate wholesalers.
Pros and Cons of Investing in Vacant Homes
As with any other investment strategy, there are pros and cons to investing in vacant homes. Here are a few of the benefits of wholesaling real estate:
- Earning large amounts of money in short time periods
- Requiring minimal capital to get started
- Learning more about the real estate industry and how it can benefit you
Another benefit of wholesaling real estate is that it can be done quickly as a side job. You can put as much or as little time into it as possible.
Some of the drawbacks of investing in vacant homes include:
- Unpredictable income
- Negative stigma from unethical wholesalers
- Not being able to find a buyer
These are all risks you take when you become a real estate wholesaler. It’s imperative to find a buyer quickly when wholesaling because the property must sell before your contract comes due.
What To Do After Investing
After investing in a vacant property, there are a few steps you need to take right away. They include:
- Locating an investor who will take over your contract
- Negotiating with the investor for a fair price
- Closing on the wholesale property before your contract period is up
These are the basic steps you’ll want to take after putting an abandoned property under contract for wholesaling purposes. A quality lead generation program such as BatchLeads can help you do these things and quickly make a profit wholesaling real estate.