014: What is Real Estate Wholesaling?
There’s a lot of talk on this show and on other real estate podcasts about wholesaling. Mark Ferguson was a licensed real estate agent and investor for years before he fully understood what a wholesaler does. In this episode of the InvestFourMore Real Estate Podcast Mark will walk through the step by step explanation of what it means to be a wholesaler, how wholesaling works, and how you can get started wholesaling. It’s all in this solo show, with Mark Ferguson.
How do Real Estate Wholesalers make money?
As a wholesaler you’re getting houses under contract, but in many cases not using your own money to buy the property and in some cases you won’t ever take title. A wholesaler finds a cash buyer to purchase a house that a wholesaler either has just bought or has under contract. In some cases a wholesaler will assign contracts to cash buyers and in some cases a wholesaler will use a double close. Find out the details of how that works on this episode of The InvestFourMore Podcast with Mark Ferguson.
[tweetthis]Making money with #wholesaling is not as hard as it seems. Find out more on this episode[/tweetthis]
How can a Wholesaler find good properties?
Most wholesale deals don’t come from the MLS. Why? Because most properties on the MLS are not great deals and most investors have no problems buying from the MLS. There’s no need for a wholesaler to be involved in most MLS transactions, however there are some wholesalers who make money from the MLS. It takes speed, knowledge and negotiation skills to wholesaler from the MLS. Most wholesalers have to find other sources of discounted or distressed properties. In this episode, Mark Ferguson walks through the ways wholesalers find properties and explains how each of them works. He’ll cover direct marketing, websites, driving for dollars, and other tactics to locate and purchase properties. It’s a basic explanation of the fundamentals that any beginning wholesaler will want to hear.
Once you have a property under contract, you’ve got to find someone to buy it?
How do you do that? This is perhaps the most important yet difficult part of the wholesaling process. The key to it is to build up what is called a “buyers list” over time. You have to have a group of interested, active real estate investors to contact any time you get a property under contract that meets their specific criteria. That way you can simply send out an email or make a few phone calls and have strong buyers interested right away. How do you build that list? You have to start by getting to know those investors, and Mark Ferguson has some tips for how you can do that on this episode.
[tweetthis]#Wholesalers need to have a good buyer’s list. Find out why on this episode.[/tweetthis]
Why wholesaling could be the best way to get started in real estate investing
There are lots of ways to invest in real estate, but wholesaling could be the simplest, easiest way for a handful of reasons. First of all, it takes the least amount of experience and is an area where you can learn as you go. Taking one step at a time and researching and learning as you move to the next phase is entirely possible. In addition, wholesaling requires the least amount of your money up front, so you can get started finding and putting contracts on possible properties without a lot of overhead. Mark Ferguson the basics about getting started in wholesaling in this episode, so be sure you give it a listen.