What You Need To Learn When Wholesaling Real Estate

The more you become familiar with real estate, sales, investing, psychology and marketing – and actually putting it into action – the more success you will have at wholesaling real estate. But in order to make this all happen, what do you need to learn to wholesale real estate and make money?

In order to get the wholesaling process started, you need to be able to find great deals. The entire process begins with knowing what a great deal really is.

For a deal to be considered a good deal, you need to have the following criteria in place:

Must be able to purchase the property significantly below the current fair market value

This will stem from some type of motivation from a seller. The motivation of the seller can be due to any number of reasons… one being of good news like a job transfer. The other can be in the form of not so good news like a death in the family or facing foreclosure. In either situation, good or bad, you should only do deals when both parties win.

The next thing you should learn, which is just as important, is how to find buyers to purchase your deals. In my opinion, you should concentrate on building your buyers list before trying to locate the sellers. A buyers list is nothing more than a list of people who are – in most cases – investors. But they can also be folks that are looking for a home to live in. The quality and size of your buyers list can determine the success or failure as a real estate wholesaler. And the reason for this is, you need people to see your properties to.

The first couple of things – finding deals and building a buyers list, are the TWO MAJOR areas that you should learn and MASTER as a wholesaler. Practicing, improving and mastering these two skills are the basic foundation that you MUST work on DAILY.

On top of building your buyers list and finding great deals, you should also learn how to complete the paperwork that is involved in wholesaling real estate. This would include understanding the purchase contract that you will use to buy or tie up the property and the assignment contract, which will be used to assign your deals to the buyer.

Your skills and ability to put deals together and sell properties will rely on your ability to negotiate and sell both yourself and the deal. Learn how to become a better negotiator and salesperson and you will greatly improve the number of properties you purchase, the price you buy them at, the number of houses you wholesale to an end buyer and the price you sell them for. This is extremely important.

It is always a good practice to have a team in place when you do decide to wholesale deals. This is mot necessary, but it is helpful. Your team can consist of people like a realtor – who can help you find deals, determine value, bring buyers and introduce you to other critical potential team members. Even though you are not borrowing money to purchase these properties, having a great lender on your team to work with your buyers can make your ability to wholesale a much smoother process. In most cases, they may know of other investors that purchase properties.

Also, don’t forget the importance that a flexible title or closing company can play in closing creatively structured deals.

And last but not least, you should understand the transaction flow and especially the closing process. Have an understanding what needs to happen and when, will allow you to fix things before they become a problem. This can also help increase your closing ratio with your deals that do make it to closing – where you ultimately get paid. A great team can help you accomplish this smoothly.

Make sure you click here to grab your FREE Report titled "6 Simple Steps To Wholesaling Success."

My buddy Eric lays it all out for you with 6 easy steps to skyrocket your success in the wholesaling real estate business. You will love this!

To your investing success!