Wholesaling Real Estate:
A very popular way of making money in Real Estate investment is to do what people call Wholesaling. That is to find a great deal on a property and then mark it up and resale it to another person. Both of these transactions would be below the retail market price hence the name. This can be done with great success in several ways. First you need a network of buyers. These people should be a diverse group of people from other Real Estate investors (the least profitable but more possible sales) to retail customers (the most profitable but least prolific). You need to develop contacts with types of customers in between as well. Look for customers looking to buy Real Estate for rental but only want a few properties to diversify stock and bond portfolios. You will find they are very particular about the house and location and will only do a few deals from time to time. I know an insurance agent that buys rental property as his retirement plan he pays cash and just keeps saving what he makes each month and when he has enough money saved up he then buys a house. I think he is up to about 2 per year. Another good source for customers is the neighbors of the property. I know a couple of guys that paid $50,000 for a house just to bulldoze it and split the lot between them. Apparently the house had been a rental that had caused them both so much pain that they were willing to pay $25,000 each just to get rid of the problem. Also the neighbors have a pretty good idea of what houses go for around them and if you are offering it at a discount they will buy it just because it is a good deal. The key is to have as many ready willing and able buyers at your finger tips as you can. The second half of the coin is to have properties under your control. You can purchase them or option them but do not start marketing them until you control them. There are lots of ways to find properties and I will go in detail on how to do that in latter articles. The main thing is to be looking for deals all the time. The best deal for a wholesaler is a deal that only he knows about.
