5 Fundamentals To Flipping Houses

Wholesaling houses or flipping houses are one of the most popular tactics in the real industry for new investors as it can be done with limited money and experience.

Moreover, it is the fastest way to make cash in real estate inventory.

What is Real Estate wholesaling?

Wholesaling houses is a term used in the real estate industry where you become a middle person who matches distressed property to a potential buyer.

It is a process where you’ll find great real estate deals and then you get paid to bring that deals to investors. It can be best explained as it is all about acquiring property in discount and then reselling it to other investors for profit.

Let’s find out what are the 5 keys to start wholesaling houses:

1. RESEARCH

To be more successful, the primary thing you must do is educate yourself. Before you dive into wholesaling houses, you must understand the basics of real estate wholesaling. There are seminars, and classes which you can attend and enhance your knowledge.

Likewise, doing research before starting something is the first and foremost thing you can do.

If you’re not familiar with the real estate market, then you should do your homework in order to get successful. Start doing research on the prices at which houses are being sold. You can always start with your area.

Look out for ads of the house on craigslist and observe at what price they are being sold at. You will get an idea about the pricing. The more you will become familiar with pricing, the more successful and expert you can become in your area. Wholesaling houses is all about manipulation of prices and doing your own math.

2. MARKETING

Real estate wholesaling does not require a lot of money, but it does require a lot of effort in marketing. Thus, you have to be the best marketer in your field. Driving for dollars is a very famous practice where you get in your car and driving around the neighborhood looking for potential deals. The goal of Driving for dollars is looking for properties which are “distressed”. The properties which have tall grass, faded paint, boarded up windows, legal notice signs are distressed properties. All you have to do is note down the address, find the owner of the property at the tax assessor’s website. There you will find the contact details of the owner. Call them or send a mail showing your interest in buying the property.

Similarly, it will also work in the house where people are living in. Drop your card or flyers stating that you are interested in buying the property.

Cold calling is another part where you can find the contact details of the house owner and started making a call to them. You need to work very hard as it is the toughest tactic.

Furthermore, you can also place bandit signs in high traffic area with your contact details.

3. CREATE A BUYER LIST

If you’re trying to build the buyer list from scratch, while still learning the wholesaling process, that’s where networking plays an important role.

There are many groups and Meetups organized by real estate professionals and investors. By being a part of these clubs and Meetups, you will get an opportunity to network with real estate agents, companies, contractors, potential buyers and so on. The strong network has a great value and above all, it is a great way to generate leads.

Make yourself active in these groups and Meetups. However, you can also make yourself known among these people by posting, sharing and commenting on Facebook Post and Linkedin Pages.

4. MAKE A PROFITABLE OFFER

Making an offer is a crucial part of real estate wholesaling. Once you have identified the property and is a great deal, now is the time to convince the house owner.

Walk around the house and look out for any damages which need to get fixed. Set up your maximum offer accordingly so that you will have a room for negotiation.

Tell the house owners about the property repairs that need to be done before reselling the house. This is an important part because the money that you will spend in fixing or repairing the damages of the house will justify your offer.

5. BE TRANSPARENT

Honesty is the key component of building a successful real estate wholesaling business. Building a good rapport with the investors will take you far in wholesaling business.

Therefore, be honest with them because if you are not then eventually they will find out and they may hold it against you.