Why You Should Consider Wholesale Real Estate

I think there are six great reasons why you should consider wholesale real estate, especially if you are new to real estate investing.

First of all, little to no cash is required to wholesale real estate. While you can start your real estate wholesaler career with absolutely no money, it helps to have some money to use as a deposit (less than $100 in most cases) and some marketing money to help find motivated sellers. Can you start wholesale with a promissory note and do all the marketing for free? Yes. Is it more difficult to do that? Yes. However, any way you look at it, you won’t need tens of thousands of dollars for down payments or mortgage maintenance costs when you sell wholesale.

Second, you can get to know your market and the business while earning some money. I wonder why some people get into rental real estate with very little knowledge of the business and especially its market when you can easily learn the market and the business by searching for deals and wholesale it to an experienced investor as they learn. With wholesale, you can start making money and learn the business and the local real estate market at the same time.

Third, you can create your dream team members and network ahead of time. Having key team members can make the difference between success and failure. If you tried to wait to find a great real estate account or lawyer when you really needed one, it might be too late. That’s why wholesale is great; You can create the key members of your dream team and your network of professionals who will help you in your business when you start selling wholesale.

Fourth, you can build your buyers list. It’s crazy to think that you can get involved in real estate investing and not build a buyers list up front. Why would you wait to find a property and make the payments before you start looking for buyers? With wholesale, you can build your buyers list, network with other investors and bargain-hunting owner-occupier buyers while searching for wholesale properties.

Fifth, you can settle in your niche. There are many niches in real estate investing, from single-family to multi-unit, residential to commercial, buy and rent to fix and trade, and many variations in between. Wholesale allows you to see what other investors are doing, learn the pros and cons of various niches, and decide which niche you will ultimately focus on. It is possible that in the end you will be attracted only by wholesale.

And sixth, you can learn how to generate immediate cash flow with confidence. Depending on the niche you focus on, it’s very likely that cash flow challenges will become an issue at some point. You need a way to be able to generate quick amounts of cash to keep your investments and your business running. That’s where wholesale comes in for many investors and having the confidence that you’ve wholesaled plenty of deals for big paydays can ease the stress of cash flow crunch.

In conclusion, the six reasons above are why I highly recommend that everyone interested in investing in real estate learn how to wholesale property, especially if you are just starting out.

Until my next post,

James