5 Tips to Help You Wholesale Your First Home in a Competitive Market

Written by Jim G. on June. 20th 2019

If you want to ease yourself into the real estate market without that much cash flow in tow, you actually can. This is the main reason why wholesaling has become so popular over the years. It’s easy and the turnaround time for a return on your cash flow is also pretty quick so it’s perfect for people like you who would just like to figure it out on a trial basis of sorts.

Although wholesaling might sound intimidating to you at first, the steps to finding the first home for you to wholesale are actually pretty simple. With a little bit of hard work and good old personality skills, you’ll be flipping like a pro in no time.

Here are 5 useful tips for you to keep in mind for when you are trying to wholesale your first home ever.

1: Find Your Property To Flip.
This is obviously very important. Without a property to flip, you couldn’t possibly move forward with any plans you have as a wholesaler. It doesn’t matter if you’re a newbie or if you’re a veteran. The first step in all of this is finding a great property that you can possibly resell or contract out to an end buyer.

Although this might turn out to be something that sounds fairly simple, it isn’t all it’s cracked up to be though and this is what you need to understand right off the bat. There will be a lot of times wherein something will just fall on your lap by luck or sheer happenstance; it doesn’t always happen like that. And if this is something that you would like to do as a main career choice or income source, then you need to depend on something other than luck. You need something a little more solid.

One way for you to more or less get started on working on finding your first ever property to flip as a newbie wholesaler would be for you to get in touch with a property finder. You can try to run up searches yourself through real estate sites like Zillow and the like. However, chances are, most of the stuff that you’ll be seeing won’t really mean much to you. There are certain jargons, items you are bound to miss out on, among other things. Getting a seasoned property finder on board is crucial for you to hit that “jackpot” when it comes to property searches.

Get a property finder who is willing to work on commission. This means that he or she will only get paid out the moment that you actually purchase or acquire a certain property. This way, you are guaranteed to have high quality recommendations because that person will try to maximize his time; and you wouldn’t have to pay for something that you aren’t getting out of.

2: Get The Necessary Appraisals.
You will technically need two types of appraisals when you’re still getting started in your quest to wholesale homes in your chosen area. First, {you need to know how to determine property value or have someone who can provide an appraisal for you upon face value or after a short visit. And second, you need a contractor who will be able to give you a tentative quote on how much the repairs needed will be so that you can factor that in to your asking price from the sellers, figure out what margin of profit you can draw out of it, and what the final price will be for your end buyers.

A few free online resources you can use if you want to do it yourself are Zillow, Redfin.com and Realtor.com take the average of the 3.

Without appraisals, you’re basically going in blind and that’s the last thing that you would want to do as an appraiser at the end of the day. It's important that are able to use free online resources to determine values or for you to get in touch with professionals who can give you their appraisals on short notice.

3: Motivate Your Seller.
This can be tough. The thing is, when you’re a wholesaler, you’re trying to acquire certain properties at a much lower price than usual. This is why your main goal should be to look up properties that are way under market value. What may seem like a steal to you may be an opportunity of depreciating assets to your sellers and this is why you need to balance it out as much as possible. For one, you need to motivate them to sell or contract their property out to you.

There is a pretty huge chance that you aren’t the only wholesaler who is trying to get them to sign. There is a very huge probability that they have been talking to other vendors as well. You need to really step up your people skills when it comes to this aspect. Try to see things from their end. Most of these sellers are in distress and this is the main reason why they are selling their homes out for under the original market value in the first place. They are scared, or anxious, or just downright suspicious of people who will be handling the sale of their homes and whether they are getting the best deal in the market or not.

Convince them that you’re the best person for the job and that their property will be in good hands at the end of the day. It isn’t an easy feat but it’s something that you will definitely be able to pull off the right way if your heart’s in it and if wholesaling is something that you’re really committed to doing. If you get to pull this hard task off, then the rest will be something that you can more or less breeze by on.

4: Learn How To Package It And Make It Pretty.
This is a pretty tough call to make for a UMV property. Properties that are under market value are not always in the best conditions and you pair that up with the possible lack of upkeep and maintenance and poor aesthetics, then you might have some challenges in “making them look pretty” enough for your end buyers.

The trick is for you to not capitalize on the aesthetics, per se, but on the practicality of purchasing the property from you. An ideal property to acquire would be to have something that is at 50% under market value. This leaves your end buyers more than enough room to have a little something for themselves too even if you have already set aside some commission for yourself as a wholesaler. Focus on this. Work on getting in touch with end buyers who are also investors but who don’t have the juice to go through the nitty gritty of finding these properties and getting them under contract. A lot of these investors like getting their hands on fixer-uppers that they can rehab and then sell out at double the price or something fairly similar to that.

5: Highlight What’s In It For Your End Buyer And Follow Through.
This sounds similar to how you’re packaging it out but not necessarily. It really is more on the WIIFM. End buyers usually have a “What’s in it for me?” mentality, as should you. again, try not to be too greedy on the amount of profits that you can reel in. a range of $1000-20,000 is a good enough margin depending on the type of property that you are wholesaling. Your appraisers can usually give you a pretty good approximation. Anything more than the projected profits can be a little too much for your end buyers to shoulder so try to throw out a bone for them, too.

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Jim G.

James Graham AKA "Jim G." have been investing in real estate for the last 27 years. He has been very successful at creating systems for buying selling that have made millions that he and many other investors have enjoyed. Jim have helped Investors, entrepreneurs, small business owners and ordinary, everyday people all over the world find success by helping them acquire high cash flow & High Equity Properties for their portfolio online… If you're ready to get your first home in the next 14-21 days NO BANKS ! or Just Accelerate your Real Estate Investing with Proven System and His Real Life Personal Expert Help reach out and request a free strategy session today.

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