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I’m New and Getting Started Wholesaling Houses in Salt Lake City, Where Do I Start?
There are many people that really have a desire to become investors. At the same time, they don’t know what options they may have. They also don’t know where to begin. One form of investment that is well worth looking at is wholesaling houses in Salt Lake City. Which raises the challenge of getting started wholesaling houses.
What is Wholesaling Houses in Salt Lake City?
Getting started wholesaling houses first means understanding what it is. Wholesale housing is not the same as house flipping. Wholesaling houses is where an individual will buy a house from the seller. Then will turn around and sell that house to someone else at a higher price. It comes down to selling the purchase contract to a third party. Possession is not taken by the first buyer.
Wholesaling Real Estate for Beginners
The first thing to determine is if this is for you. It is a business in its own sense. You do not have to have a real estate license to do this. The other big advantage is you don’t need a lot of money. To be successful at wholesaling houses, you need to understand it. Getting started wholesale houses requires a series of steps. Wholesaling real estate for beginners begins with a learning process.
You need to look at yourself as being the middleman between the sale of the house and the purchaser. It is the purchaser who will end up with the sale contract.
By the time the deal is ready to close, you are no longer the purchaser. Your job will have been to find someone else that wants to buy the house and does so.
Your next thought may be about the risks. What happens if you can’t sell the house. It is always a concern for those getting started wholesaling houses.The protection here is that you only buy the house with certain conditions. The condition here is on contingency. It means that the contract will read that the sale is valid on condition of you finding a buyer.
Real Estate Wholesaling Contracts
Getting started wholesaling houses means you need to understand the role of the contracts. It is really what you are going to be selling.
When you buy a house, you enter into a contract. The contract comes with certain rights for you. You then have the task of finding someone who also wants to buy the house. This buyer then buys the contract from you. All the rights that you had with this contract now go to your buyer.
Where Do You Make Your Money?
You make your money from the sale of the contract. Not actually from the sale of the house. You will be selling the house for the same price you agreed to purchase it. You make your money by charging an assignment fee. The assignment fee is what the buyer is paying for the rights to the contract. It allows them to become the new homeowner. It is what real estate wholesaling contracts are all about.
Wholesaling Real Estate Step By Step
Now it means going through the wholesaling real estate step by step. By doing this, you can have a successful experience.
1. Where are the Properties?
Your first task is to find properties that you are interested in. These will be properties that are up for quick sale or are in distress. They will be lowered priced because of the necessity of having to sell quickly.
2. Where are the Buyers?
Getting started wholesaling houses means setting a goal. Your goal is to find a buyer of the contract as quickly as possible. You want to immediately start building a buyers list.
3. Know the Seller’s Situation
You need to be able to buy the house at wholesale prices. Knowing what to offer will be the key. Determine what the seller needs. Their needs are based on what it will take to help them with their financial difficulties. These are the difficulties that are forcing them to sell. For example, they will have a mortgage they need to clear. Plus they will need a small amount for new start-up costs. It is for their new living arrangements. These two amounts will help determine what you should offer to buy the house for.
4. Make Your Presentation to the End Buyer
You now need to present the property as a tremendous wholesale property. It will be to the individual you are going to sell the contract to. These individuals are the ones that usually will fix up the home. Then they will put it back on the market and sell it at a profit.
5. Final Step of Getting Started wholesaling Houses
This step is the preparation for closing. You will need to learn the procedure for this, but it should be quick and easy.
How To Build a Buyers List
Getting started selling wholesaling houses has a few minor challenges. These are easily handled. One is building a buyers list. It takes a little bit of work. It is not difficult. It begins with advertising. Your ad has to be short but able to capture the attention of buyers. The target is buyers who want to buy homes cheap.
The calls will start coming in. Don’t try and make an immediate sale. Gather all the information first about this potential buyer. Get their contact information. They may not buy this time. If you build a buyers list, you can contact them every time you have a new property to sell.
Where to Find Other Investors?
Learn where the potential buyers are in your area and what resources they use. Networking is going to be the key to finding your target market.
Wholesaling Houses For Dummies
Getting started wholesaling houses means using the resources to educate you. One example is a book like Wholesaling Houses for Dummies.
Here at Salt Lake Wholesale Homes, we have been in the real estate business of buying and selling cheap houses for a long time. We welcome the opportunity to work with wholesales. This is no matter if they are new to this business or have been in it for a long time. Give us a call at 801-810-8756 so we can talk business together.