Wholesaling Real Estate: How To Invest With A Strategy

If you intend to go into wholesaling real estate for profit, you must come up with an entry and exit plan that meets your particular investment needs. The majority of people do their learning in a hands-on fashion, by lucking into a good deal. First they locate a bargain home, then they come up with financing, and finally they complete the transaction.

But without a previously planned exit strategy, first time real estate investors often flounder because they don’t know what to do after they buy their first property in wholesaling real estate. The secret to success in wholesaling real estate is to have your exit strategy prepared before you buy.

The right pricing decisions will come after you have a plan as to how you want to deal with the property you want to purchase, as will the nature of the financing you want. Buying bargain real estate and then reselling it for a reasonable profit to someone else who would be the actual investor is known as wholesaling real estate.

What some people might call an acceptable gain might run anywhere from $5,000 to $25,000 per sale, according to the kind of house involved, the total price of the property, your ability to negotiate and various other considerations. The elements that determine profitability are not rigid, and can vary by as much as 10-20 percent.

Atlanta’s real estate market provides a great many profitable opportunities for the real estate investor who is interested in wholesaling. Investors can obtain fixer upper houses for a substantial bargain. With the possibility of reselling a fixer upper house in as little as seven days, wholesaling can prove to be a source of fast cash for the savvy investor.

Even if a wholesaler doesn’t demand cash, it can be a good way to build up your liquid assets. In an alternative situation, wholesaling can be a response to a wealth of cheap property on the market, over that which is needed as a personal home or as a rental property for regular income.

Instead of leaving such property alone it can be profitable to make an investment and purchase it to pass it on swiftly to someone else at a higher price and pocket the difference. This is an excellent way to gain from ones property locating skills and keep them honed. In addition, pursuing a wholesaling strategy allows flexibility for making quick decisions on retention/disposal of properties in course of locating and purchasing.

If you think about wholesaling real estate like a business, you’ll soon see the necessity of creating a get in and get out strategy tailored to your needs as the investor. Prospective investors need to learn how to get good deals on the market. In the Atlanta real estate market, there are plenty of arguments for the profitability of real estate wholesaling. There are fixer upper houses available out there for cheap, and you can make some fast cash by buying these properties and making them salable in as short of a time as seven days to six weeks.

- Kent Hamilton