What is Co-Wholesaling?
To understand co-wholesaling, we must first understand wholesaling by ourselves. Wholesaling is one of the most common strategies for real estate investors. And one of the best ways to build your real estate portfolio.
Wholesale properties generally come from sellers who are motivated to sell, for whatever reason, and usually selling lower than market value. This is part of the allure of wholesaling, that a healthy profit can be made on each transaction.
Wholesaler vs Real Estate Agent
Real estate wholesalers act as a liaison between buyers and sellers. Unlike real estate agents, wholesale investors often become buyers of the properties they are selling and the vast majority of their clients are other real estate investors.
One of the building blocks of real estate is establishing a solid team and creating a reliable list of promising investors. The right team of contractors, agents, attorneys, and financiers will be able to make each transaction worth the time and effort. Connecting with other wholesalers and building solid relationships with buyers makes wholesaling easier.
How to Get Started in Co-Wholesaling
Clients, clients, clients! The most important thing to a wholesale investor is their database of buyers and sellers. Sellers will eventually become buyers and vice versa. So when you add someone to your list, it can be expected that a second sale is likely.
Intuition is utilized more often than you would think when it comes to real estate. And once your network has been created, knowing who to connect with who, and when, will present itself naturally. Getting to know what your clients are looking for will make it easier when on travels through the current inventory.
Co-wholesaling capitalizes on that solid plexus of industry professionals. Sometimes the buyers side of the list grows faster than what you have available for sale. Linking up with other wholesalers, or professionals in the business, can provide a viable lead for a buyer in your list who is looking for something that is not currently in your inventory. Or provide the buyer for a property you have been trying to sell.
The Benefits of Co-Wholesaling
Essentially, co-wholesaling can be easier than closing deals on your own. All of the parties in the sale are eager to close and there is no stressful waiting to find the right property or buyer. Connecting with fellow wholesalers will double your database, remember that now your co-wholesaling investor’s list of buyers is open to you for your available list of properties.
Real estate has an inherent quality of community involvement, and working with like-minded people will help stimulate your local economy, create neighborhood improvements, and contribute to one of the leading industries in any area.
Co-wholesaling has a ripple effect when it comes to the financial aspect. Both you and your fellow co-wholesaler make a healthy profit, local attorneys are included to help with any closings, if work needs to be done on the property, area contractors are employing craftsmen, and local banks are part of helping to sustain a productive community.
Both new investors, and veterans alike, can reap the benefits of co-wholesaling. If you are new to the game though, co-wholesaling is a great way to meet and work with colleagues and build your list of investors. Don’t wait! Become a part of your real estate community today.