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Wholesaling is nothing new – but it’s becoming more and more popular. When searching for the best ways to find wholesale properties you will find plenty of advice on how to find wholesale deals – the problem is, there will be so much advice, you won’t know what to do with it. I’ve created a series of articles about wholesale property listings that include best ways to find wholesale properties and other wholesale tips and tricks you might not be familiar with.
So let’s just jump right into it.
If you’re new to real estate, the term might confuse you. Wholesaling basically means “flipping” the house. When you wholesale a house, you sell it to the buyer as-is.
Wholesale properties come with a lot of pros – but of course, just like with every real estate, there are a lot of cons too.
People who usually buy real estate from wholesalers are known as ‘rehabbers’. They are the investors that buy a house from wholesalers and then fix it up.
The reason why you’ll see rehabbers buying from wholesalers is because it means less work for them – they don’t have to go through extreme lengths of finding a good deal – this is all done for them.
When they buy from a wholesaler, they’re usually guaranteed specialization and a marketing skill when it comes to real estate. Wholesalers are extremely good at their jobs and people who buy wholesale properties know it.
But the best reason to buy from wholesalers is that deals are usually delivered cheaper than they would be if the rehabber actually found them themselves. The property they get saves them in the long run.
Before we have a look at ways to find wholesale properties, it’s important to answer how much profit you can actually make by being a wholesaler.
This depends on the property you’re trying to sell. FlippingJunkie uses this formula to determine the maximum offer of your house:
$100,000 (fixed-up resale value) * 70% – $10,000 (repairs) – $8,000 (your wholesale fee) = $52,000 (max offer)
BiggerPockets outlined that wholesalers can easily get anywhere from $5,000 per deal. It might not seem like a lot, but over time, you’ll notice that the profit can quickly add up into quite an impressive sum.
But what are the best ways to find wholesale properties? How do you find a property that will bring you profit?
With websites like Craigslist and many other classifieds out there, finding wholesale properties is easy. How you find them will depend on where you live – it might be easier in larger cities, but this also depends on the demand. You’ll get luck just by searching ‘wholesale in YX’ on Google!
To find out what the demand is in your area, ask a realtor! They know the neighborhood, they know its value, and they might be even able to tell you about the common people that buy houses in the area. Once you get this information, you’ll be able to use more and more strategies to find wholesale properties.
I can guarantee you there are a couple of ‘We Buy Houses’ signs in your area. Easy job!
Title companies can refer you to sellers who had a failed close. They might be limited to what information they can disclose, but you should be able to find wholesale property listings through them.
Do you have a huge network? Use the power of email marketing and learn how to work with large email campaigns – advertise your work and highlight your knowledge and experience. Chances are you’ll be able to get at least one wholesale property through email.
Networking is one of the most important keys when you’re looking for best ways to find wholesale properties. Use your marketing skills and learn how to advertise your work through referrals. You know, the old I’ll scratch my back while you’ll scratch mine. It’s a win-win situation for most people.
Social media is now an important part of real estate whether you like to admit it or not. Try searching for wholesale properties on Facebook and see what comes up. Use hashtags like #wholesale, #wholesaleproperty, #wholesalehouses, or even check up on the realtors in the area. Create social media pages and advertise your work.
If you haven’t yet, create a website and target ‘wholesale properties’ as a keyword. If you’re not sure how to do that, look into hiring an SEO specialist who will help you set everything up. After a while, you’ll notice more and more people coming to your page using Google. Now every time someone will search for wholesale properties in your area, they’ll find your website! Make sure your contacts are clearly visible and create a fill-out form for when you’re not available to answer the phone.
The best wholesalers expand their team and outsource their work. This allows them to find properties faster and take care of their large database of clients. I recommend you find a team you trust – whether it’s realtors, contractors, rehabbers, or anyone you feel like could benefit your business. Then all you have to do is just make it happen.
If you have any questions about wholesaling, don’t be afraid to give me or my team a call – we’re always available to answer any questions! Don’t forget to check out our blog for more real estate topics.
At StarrMark Solutions, we are always looking for new investors to add to our buyers list. We specialize in real estate investing, no matter if it’s rehabbing, wholesaling, or birddogging. We would love to talk to you about our wholesale properties, or about your wholesale properties! As active investors, we’re always interested. Give us a call today at 8436471284.