Learn to Wholesale Real Estate

Learn to Wholesale Real Estate

by Monica Jones

Yes, you can invest in real estate no matter what the economy. For those that know how to do it, they are doing it right now. This is absolutely one of the best times to invest in real estate. While everyone else is running from real estate, you should be running towards real estate.

Gas prices, job loss, and foreclosures are on the rise. What does this mean for you? If you learn how to master this one real estate technique, you will be able to make money in any economy. What technique is that? If you don't know about it, make sure you learn about it today. If you're using it, than you already know what I'm talking about. Wholesaling is the fastest way to turn $1 into $3,000 or even $10 into $10,000. If you currently rehab houses, landlord, or are just getting started in real estate investing, you should add wholesaling to your real estate arsenal. All the best real estate "gurus" wholesale. Wholesaling generates a steady cash flow and helps maintain the other parts of your real estate business. There are a few steps to mastering wholesaling:

1. Be in the proper mindset. Stop analyzing WHY you can turn $1 into $3,000 and just determine that you are going to learn HOW to do it.

2. Find motivated sellers. They are everywhere. With all the foreclosures going on, almost everyone is motivated! Put out "We Buy Houses" signs (these always work), ads on Craigslist (for FREE), send direct mail to FSBOs, etc.

3. Make an offer to the seller. First determine what the fair market value is of the property. An easy solution to this is to average the numbers you get from Zillow.com and Realquest.com. Sixty-five percent of this average should be your maximum offer minus repairs. Once you have an idea of what your maximum offer will be, find out what the SELLER NEEDS first. This is very important. Build rapport with the seller to get him to give you an idea of what he needs. Then give it to him! This is as long as it's within the range you've predetermined. This makes it a WIN-WIN solution.

4. Put a contract on the property for the agreed upon price.

5. Determine your fee for the contract (assignment fee). This is the fee your end buyer will pay you for finding such a great deal! You want your contract to be as appealing as possible. Make sure you leave enough room for everyone to make money.

6. Find a buyer for your contract. You can use the same methods that you used to find a seller to find a buyer. You should be constantly looking to increase your buyer's list of investors and retail buyers, these efforts will prove invaluable.

If this seems simple, that's because it is. As with any business, it requires hard work and a strong desire to succeed. Stop learning and start earning today!