Most people do not know that a great advantage of wholesale trading is the fact that wholesalers do not have to reveal their strategy to the seller and buyer. For this reason, wholesalers will often acquire real estate and tip it over within 30 days for a massive gain. If the wholesaler had been forced to tell a seller that his property could be sold for 50% more than they were about to pay, it would be very doubtful if the seller sold him the property. It was surprisingly easy for me to find cheap properties and buy them for free and clearly with the money I had on hand – but the real challenge was to sell those properties quickly. No credit quality verification: Even in case of non-performing loans, you can be on wholesale real estate. Because wholesalers assign the contract to another buyer, they are not the ones who need to be audited for credit quality. Only the buyer must undergo credit checks to finance the property. Once you have the basic information about your contacts, it`s time to start the real estate management campaign. The three most common types of lead creation outlets are through networking, marketing campaigns and the presence of social/web media. For those who want to get started, individual marketing strategies for creating wholesale leads are broken down below: No one can feel troubled. Instead of feeling stupid, most disoriented people will simply say „no“ to save their pride (even if this regulation is really in their best interest). Two transactions take place during a dual transaction.
The first transaction, unsurprisingly, involves an investor and a seller. The second transaction will then encourage the investor to sell the newly acquired property to a new purchaser. Each transaction has its trust and billing accounts; these are two independent operations. A wholesale contract can be extremely confusing for those who don`t understand it. That`s why I always recommend working with a real estate lawyer. You should consult a professional who is knowledgeable about real estate before deciding to take a few steps. There are legal pitfalls in the process, so don`t go ahead with a wholesale clean up until a competent real estate lawyer gives you the green light. As a general rule, a down payment is made to the wholesaler as soon as the contract is signed. However, the rest of the profit will come after the transaction closes.
My goal was to confuse buyers, sellers and closing agents about how this process works, and to give me the freedom I needed to be comfortable in these kinds of transactions.