What is it going to take to be successful at wholesaling in 2014?
There
may be many factors which play into the success of real estate
wholesalers over the next 12 months but the following four elements have
been pegged by some real estate gurus and wholesaling CEOs as being the
most critical for fully capitalizing on the market and maximizing
income...
1. Liquidity
In order to be able to take advantage
of the best investment opportunities as they arise and fully maximize
potential deal volume investors need liquidity. Regardless of the
ability to do no money down deals and even if investors are coming into
the game of wholesaling houses with mega lottery winnings there are
still so many deals out there they won't be able to touch a fraction of
them. Besides even those with sizable nest eggs may be better off
keeping much of that money in reserve. So line up your financing sources
early and be ready to roll as opportunities arise. Look to hard money
lenders, commercial lenders and transactional funding.
2. Relationships
It
may be unfair, but as with most things in life wholesaling properties
fast and for maximum rewards is often about who you know, not what you
know, or what you've got. Fortunately this doesn't have to mean being
born with political connections or having gone to an Ivy League school.
It can be relatively easy to make connections in this industry,
considering everyone else is on that mission too. The real difference is
made by cultivating strong relationships and developing loyalty. While
in general wholesaling homes may be about the short game, winning in the
long run requires investing in these relationships.
3. Speed
This
has been said again and again. However, many of those attempting to
wholesale houses still don't get how fast they need to be and how
valuable it is. When wholesaling properties, especially today, you don't
have days or weeks to evaluate and ink a deal. You have to be one of
the very first to respond to new listings and triggers, and be literally
ready to make an offer on the spot. This requires an intimate knowledge
of local real estate values and properties, tools or a system for
evaluating deals fast, contracts handy, and some strong decision making.
4. Flexibility
The
only thing guaranteed in the real estate industry is that everything is
constantly influx. This not only means being agile in marketing and the
types of deals you are willing to work with or where, but flexibility
in the whole business model.
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