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Wholesaling Real Estate - Skills And Experience Required
By Tom | August 29, 2008
If you’re considering real estate investing, some time spent analyzing yourself, asking some hard questions about your skills and experience, will be well worth it.
We started off in my two previous posts by asking the following questions:
Are you easily bored?
Are you detail oriented?
Are you mechanically inclined?
Do you work best alone or with a partner?
What experience have you had?
Do you deal well with people and their problems?
To be an effective wholesaler of Real Estate, it’s helpful to first understand what wholesaling is all about. A wholesaler is an investor who ties up a property, usually by means of a purchase contract or letter of intent, and then “flips” the contract to another investor at a profit, often without ever closing on the property himself.
Wholesalers of residential investment property typically make a profit between $1,000 and $5,000, sometimes more on higher priced properties.
To be effective as a property wholesaler, you need to be a good negotiator, and it helps to have a good head for figures and details. Finding property to buy at a wholesale price is only half the battle. You then need to locate investors who not only are interested in buying, but who also have the means to close, meaning they can afford to pay cash or qualify for financing.
Often, the most difficult part of a wholesaler’s job is getting all parties to the closing table with everything they need to make the deal happen. Because of this, a wholesaler must be the kind of person who understands the details of a real estate transaction, and who can make things happen.
If wholesaling sounds interesting to you, you’ll find a wealth of information at Flipping Homes.
Next time, I’ll cover another area of real estate investing called Short Sales… meanwhile, you should check out Education In Real Estate Investing.
Topics: wholesaling |
August 30th, 2008 at 1:24 am
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