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Have you ever dreamed of getting into real estate but felt discouraged by the high costs and competitive market? Don’t worry; there’s a way in! Wholesaling houses are like a secret handshake that lets you bypass the crazy bidding wars and high costs. You don’t need much cash or perfect credit to get started, just the knowledge you’re about to gain.
This guide will crack the code of wholesaling, breaking it down into bite-sized steps you can follow. Get ready to unlock a world of opportunity – and maybe even start making serious cash! By the end, you’ll have the knowledge and strategies to make $10,000 or more monthly through wholesaling!
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- Wholesaling houses unveil a world of real estate riches without requiring vast sums of money or a perfect credit score.
- Tools like Prop Stream and Deal Machine act as your treasure map, helping you locate and connect with off-market properties and their owners.
- By considering factors like the seller’s asking price, estimated rehab costs, and the After Repair Value (ARV), you can secure deals with ample room for profit.
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How to Become a Real Estate Wholesaling Master & Make $10k a Month
Unearthing Hidden Gems: Finding Off-Market Properties
The treasure hunt begins with finding “off-market properties.” These are houses that aren’t publicly listed for sale by a realtor. Why target these hidden gems? They often present the best deals. Sellers trying to sell through traditional channels might be bombarded with offers and competition, driving the price up. On the other hand, off-market properties have yet to be exposed to the frenzy of the open market, potentially allowing you to snag a great deal.
So, how do we find these hidden properties? Here’s where technology comes to the rescue. Powerful tools like Prop Stream can be your secret weapon. This software allows you to filter properties based on specific criteria. Imagine searching for older houses in your target area that their current owners might have neglected. Prop Stream can generate a list that matches your preferences, saving you hours of searching.
Hitting the Streets with Deal Machine: Making Contact
With your list of off-market properties, it’s time to take action! But before you head out, equip yourself with another helpful tool – Deal Machine. Think of it as a drive-for-dollar app on steroids. It helps you locate each property on your list, saving you valuable time. But Deal Machine goes a step further. It also allows you to “skip tracing.” This might sound fancy, but it simply means finding the property owner’s contact information – phone numbers and email addresses become gold in this business!
Now that you have the addresses and contact information, it’s time to make your approach. Remember, effective communication is critical. Here’s where your people skills come into play. You’ll need to tailor your message depending on the situation. Is the owner living in the house, or is it a vacant property with an absentee owner? Understanding their motivations and challenges allows you to build rapport. This means creating a connection and making them feel heard and understood. After all, people do business with those they trust!
Numbers Don’t Lie: Evaluating Deals Before You Leap
Before diving headfirst into any deal, assessing its profit potential is crucial. Think of it as an investment checkup. Here’s where financial analysis comes into play. We need to consider three key factors:
- Asking Price: This is the amount the seller is looking to get for the property.
- Estimated Rehab Costs: Let’s be honest. Most off-market properties will likely need some work. So, factor in the potential costs of repairs and renovations.
- After Repair Value (ARV): This is the property’s estimated market value after the necessary repairs have been completed.
Here’s the golden rule: never pay more than 70% of the ARV when you add up the asking price and estimated rehab costs. This ensures you have enough room for profit after you assign the contract to another investor. Remember, wholesaling is about finding deals and connecting buyers with sellers, not becoming a landlord yourself.
Sealing the Deal and Assigning the Contract: Your Payday Awaits!
If you’ve identified a promising deal with good profit potential, it’s time to negotiate a contract with the seller. This contract solidifies the agreement, outlining the purchase price and inspection period. Once you have a signed contract in hand, the magic happens! You can now assign this contract to another investor, typically a rehabber specializing in fixing up properties.
Here’s where your wholesaling fee comes in – your reward for finding and securing the deal. This fee can range from $10,000 to upwards, depending on the property and market conditions. The beauty of wholesaling is that you can make this substantial profit without needing a significant upfront investment or a perfect credit score. You’re acting as a middleman, connecting motivated sellers with eager investors.
The Takeaway: Your Wholesaling Journey Begins Now!
That’s the magic of wholesaling houses! It’s like having a treasure map to real estate riches without needing much money or experience. Imagine being your boss, making $10,000 monthly, and helping people. Ready to ditch the 9-to-5 grind and become your boss? Wholesaling offers a path to freedom and flexibility. But remember, the more you know, the smoother the ride.
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