Buying and selling real estate as an investor is easy, right?
Not so much… Rookie real estate investors often become overwhelmed by how much work, effort, and time involved in just one real estate transaction.
But don’t fret! Wholesaling Is The Answer.
Wholesaling is a great alternative that can help you learn the ins and outs of what makes a great deal in Miami. Through wholesaling, you’ll learn to understand the market and develop the required negotiation skills for all types of real estate deals.
Here are four of the best ways to wholesale properties in Florida.
Develop a Network of Buyers and Sellers
This might sound like common sense, but many new wholesalers worry that they are competing against other investors in the market. But, the truth is actually the opposite of this. Other investors are, in fact, your best allies within the wholesale process.
A network of other wholesalers, frequent sellers, and rehab investors will quickly become a resource for you to (take advantage of) and discover new opportunities. They will also be a great asset from whom you can learn more about wholesaling and investing in general.
Consider joining a real estate investment club. Keep your attendance at meetings consistent and start to build up a solid rapport with local like-minded members and individuals slightly further afield. One of the key benefits of a club is being able to find investors who have or are looking for investments beyond your base of operations, meaning such clubs could be extremely advantageous as you expand your business.
Present Buyers With A Plan
Make it exceptionally easy for a potential buyer to see the investment value within the wholesale deal. Prepare a detailed market analysis of the property, the market, and the potential rehab cost. Present the information in a clear and easy-to-digest manner. Highlight the possible return on investment and get the buyer engaged right from the get-go. Of course, the buyer will still want to carry out his own research and analysis, but you’re sure to attract more attention by having all the details sorted out from the start (plus it never hurts to make a good impression).
Think of it this way; a person investing in stock doesn’t just rely on the word of his stockbroker. He looks at the essential numbers before making a final decision.
Real estate investors are savvy and successful because they understand how to take a property and turnaround a profit. You’ll build a much better reputation in wholesaling when clients and other investors know that most of the work has been done for them, and all they need to do is confirm your research.
Having partners is a step beyond just wholesaling and networking. Dependable partners become an integral part of the deal process. While splitting an investment between more than one party means less profit for you, it makes sense to do this if you can scale up the operation.
Plus, building a strong, multi-talented team is a great way to ensure you’ve got every area covered. If your skills lie in finding distressed properties, find a confident partner who can present the package to sellers. Then, you both can focus on the areas where you have the most expertise. This increases your likelihood of finding viable properties to invest in.
As your business grows and you expand into other areas of real estate investing, your partnership will ease the growing burden of any one transaction. Simply put, it’s a divide and conquer approach. Each person can focus on their strengths and rely on the other to support them where they lack the know-how and experience.
Invest Back Into Your Business
Even though wholesaling doesn’t involve spending tons on real estate rehab, don’t assume that there are no costs involved. Sure, you can try your best to keep costs low, but investing back into your business is the smartest course of action a rookie wholesaler can take.
But, how exactly do you invest in your own business?
- Pay for real estate classes and join investment clubs.
- Put money aside to cover advertising and presentations.
- Hire an assistant and outsource admin tasks to help you maintain a professional image.
- Spend time networking. Wholesalers need to be out and about to know what is going on and find the great deals.