Wholesaling Real Estate in California
Suppose you are looking for opportunities to profit from California’s real estate boom without having to compete against entrenched flipping interests in crucial areas directly. In that case, wholesaling might be your best approach. Instead of buying and turning properties, you should focus on matching sellers with buyers who see the profit in an area’s rising values. This essentially allows you to make a fee from the matchmaking, but it also requires a careful approach because of California’s strict real estate laws.
For unlicensed wholesalers, state laws prohibit you from marketing the property. You can match buyers and sellers through private social networks and contacts, reaching out directly from leads.
You will need a state brokerage license in order to market properties on the MLS or list them on other public marketing channels. The advantages?
Play by the Rules
Whichever way you go, remember that the key when wholesaling houses in California is matching up both parties to the transaction well and quickly. Your margins on individual deals are low, but since you don’t have to buy or improve the properties, you can work on a lot more deals at once.
That means you can use this to add a little profit to your regular schedule without derailing your projects, or you can focus on moving properties quickly to get a high overall ROI for your costs of labor and lead research tools.
So, what should you look for when identifying an area that will
have solid wholesaling opportunities?
The major cities in California are all large enough and economically developed enough to have ongoing opportunities.
They also have a decade-long track record of increasing property values. In some areas, this value escalation might hamper wholesalers, but in the areas surrounding those maximized markets, there is still a lot of opportunities:
Keep an eye out for those key economic indicators to find more current and rising hot spots.
While you are at it,
reach out and make contact
Using BatchLeads to track down motivated sellers in those markets means getting in touch to set up service if you don’t already have it.
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