Wholesaling real estate is a process that is used by many investors in different areas of the market. It can be a difficult process to get your head around, especially if you’ve never wholesaled anything before. However, once you understand what it involves, it’s not as scary as you may think. The process of wholesaling real estate is when an investor purchases a property at a discount and then resells it to another person for a profit.
In this blog post, Moe Mathews – an investor, developer, builder, and wholesaler – will explain exactly what wholesaling real estate involves and how you can get started with this process today.
What Is Wholesaling Real Estate?
For more than 20 years, Moe Mathews has been involved in real estate investing, construction, wholesaling, and ownership.
As Mathews explains, wholesaling real estate is the process of purchasing a property and then reselling it to another investor without using a broker. The investor who resells the property is known as the wholesaler. The person who is buying the property is called the flipper. Wholesaling real estate is a great way to get started with flipping houses. It’s a lower-risk way of getting started because you don’t have to use your own money to fund the purchase. Instead, you can find people who are looking to buy a property and use their money to fund the purchase.
How to Find Deals for Wholesaling
In the course of his career, Moe Mathews has helped his clients purchase and sell everything from condominiums to luxury mansions, always with exceptional client service.
So, according to him, the first thing you need to do is to find potential leads who are looking to purchase a property. There are many places where you can find these leads. You can find them on Facebook, in your local paper, or you can even use the internet to find leads for you.
When you’re looking for investors, try to find people who are willing to use the equity in their property to fund the purchase. This will make it easier for you to find deals for wholesaling. In addition, make sure you tailor your marketing to the type of person you’re looking for.
For example, if you’re buying in an area that has lower-income families, you should be marketing to investors who are happy to fund the purchase using cash.
Alternatively, if you’re buying in an area with a high average income, you should be marketing to investors who are happy to fund their purchase using the equity in their property.
The Process of Wholesaling Real Estate
There are two types of wholesaling real estate: simultaneous and bilateral.
Simultaneous wholesaling happens when both the wholesaler and the flipper close on the property at the same time. Buying a property and reselling it to another investor within 24 hours is called simultaneous wholesaling.
Bilateral wholesaling happens when the wholesaler buys a property and finds another investor to resell it to. The idea is that you’ll make a profit from both of these transactions. Although bilateral wholesaling is more common, it’s also more time consuming and difficult to do.
Therefore, Mathews recommends you start with simultaneous wholesaling. If you’re going to be wholesaling real estate, you need to know how to avoid the two biggest mistakes first-time investors make: overvaluing your property and not determining the best exit strategy. Without these two elements in place, you’re likely to lose money on every deal you make.
Things to Remember When Wholesaling Real Estate
You should be careful when selecting properties to wholesale. Mathews suggests making sure that you’re only buying properties that have the greatest chance of being resold. You should also be careful when selecting an investor to work with. Look for an investor who has a good track record and one that you can trust. You should also be careful about how much money you put down on a property when wholesaling real estate. You don’t want to front so much that you can’t pay for the property if the deal falls through. Finally, you should be careful when trying to collect your profits from the deal. You don’t want to push the investor to pay too quickly because they may be suspicious and they may not pay you at all.
Final Words
Wholesaling real estate is a great way to get started with real estate investing. It’s a lower risk way of getting started compared to using your own money to buy properties. As with any business, you need to make sure that you do your research to avoid making costly mistakes. You also need to make sure that you are selective with the properties that you buy. When you do so, you’ll increase your chances of success and you’ll be able to make money from real estate investing sooner than you ever imagined.
If you need help with wholesaling real estate, you can reach out to the real estate wholesaler Moe Mathews. He is an expert in this field and is passionate about helping his clients save money and achieve their goals.