For beginners, wholesaling is definitely the best real estate investing strategy. Not only do you not need a lot of money or great credit but you do not need years of experience. It’s fast, low risk and as a beginner you can learn many of the fundamentals needed to achieve success with almost every strategy. Here are some essential fundamentals you will learn by wholesaling.
- How to find deals – Learn to get a steady flow of prospects into your pipeline, efficiently filter out the duds and cherry pick only the best deals.
- Build a buyers list – Build your buyers list by networking, ads, marketing to a list from title of recent investor buyers, etc.
- Market and sell deals – Learn what investors are looking for, how to market and sell deals. Get backup offers too.
- Write contracts – Learn to write contracts to creatively buy and sell real estate.
This brings us to an interesting challenge. Banks and sellers usually do not allow the buyers name on the offer to include “and or assigns”. If you can, always write this into your offer. If you cannot, here are some solutions, because you can wholesale REOs.
- Double close – Use your own, and investors or flip funds to complete a double close. Find a title company that is investor friendly. The seller will deed the property to you, then you deed it to the buyer.
- Sell the entity– Write your offers in the name of an LLC, if you haven’t already created the LLC upon excepted offer, then sell the LLC to the buyer. You will actually save money on fees from a double close this way.
If you are a beginner stuck without a strategy, in analysis paralysis and/or spinning your wheels wholesaling is the strategy for you. How else can you make fast money with none of your own money or credit (or at least the bare minimum cash)? All it takes is time and effort which will result in invaluable experience. Happy Investing!