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Wholesaling Houses Step by Step
If you’re looking for a wholesaling houses step by step guide, you’re at the right place. My name is Kyle and I’ve been in the real estate investing business for years. I can tell you how to sell your house fast and many tips and tricks when it comes to real estate. Today, we will look at wholesaling houses. This guide will teach you about wholesaling houses step by step, wholesaling houses for dummies, and how to find wholesale properties.
Let’s take a look at what real estate wholesale is. Investopedia has this definition:”A real estate wholesaler contracts with a home seller, markets the home to his potential buyers, and then assigns the contract to the buyer. The wholesaler makes a profit, which is the difference between the contracted price with the seller and the amount paid by the buyer.”
Essentially, what you are doing when you’re wholesaling houses for a living, is “flipping” them. This is easily done through renovation and many renovators will buy the house off you and make this process easier.
Make sure you continue to read this guide to find out everything you need to know about property wholesale.
Wholesaling houses step by step guide
I should note that before you even begin any step in this wholesaling houses step by step guide, you should first look into educating yourself on wholesaling law as well as anything regarding real estate – from how to deal with transactions to how to solve any potential problems you might face along the way.
Now let’s begin this wholesaling houses step by step guide!
- Create a marketing plan
To make your wholesaling business work, and to say you’re wholesaling houses for a living, you need to market your business. Here’s what your marketing plan needs to consist of:
- Social media (Use Facebook, Twitter and Instagram to do wholesaling for a living – search (and use) by hashtags, location, and your specific keywords)
- Networking (Network with other social media accounts and make sure you tell absolutely everyone what you do)
- Advertising (Advertise your business on social media as well as the word of mouth)
Most importantly, if you market yourself as a wholesaling expert, make sure you do your best to know everything there is to know about the neighborhood, prices, and how wholesaling houses works.
- Information analysis
After you get responses, you need to qualify them. Determine how much the property is worth by receiving comparable sales by preferably a local realtor or someone who knows the actual value. Make sure you gather all necessary information amount the property such as lot size, liens, zoning, and more. You can use a CRM program or any filing system that will help you keep your information in place and easily accessible.
- Property inspection
You should always inspect the property in order to understand how to “flip it”. You don’t have to go all in with your renovations. It just needs to be enough so that it meets your target and that it’s justified to the person you are selling your house to.
If you’re not sure how to inspect a property, I suggest you hire a local inspector.
4.It’s time to negotiate
Every wholesaling houses step by step guide will talk about different ways you can negotiate to make a good deal. But here are some of the key negotiating tips to do when you are wholesaling houses for a living:
- Listen more and talk less.
- Make sure you have a plan B.
- Don’t negotiate over the phone.
- Sway your seller by knowing the facts!
- Deal with paperwork
Make sure you get everything under contract after agreeing to a deal. If you’re not aware of every law regarding real estate transactions, make sure you get an attorney to help you.
- Find your renovator and advertise your deal
Now it’s time to advertise your deal. This is where your networking groups come in handy – it’s time to find your renovator. Renovators sometimes also want to buy the property from you (which is the easy way to do in this wholesaling houses step by step guide), or you can flip the house yourself.
- Assignment of contract
Here’s how Nolo defines assignment of contract:”An assignment of contract occurs when one party to an existing contract (the “assignor”) hands off the contract’s obligations and benefits to another party (the “assignee”).”
This is best done with an attorney present. The contracts should always be signed in a public space.
Check out these wholesale assignment of contract templates. As it’s stated on the website, “make sure the wholesale contacts are legally binding and meet your local requirements.”
- Close and repeat
Cash your check in the settlement and ask your seller for a testimonial for your future wholesaling deals.
And then repeat the process again and again. Soon you’ll be making profit and customers will come to you instead of the other way around. It’s always good to keep in touch with your past clients!
How to find wholesale properties
My wholesaling houses step by step guide will also show you how to find wholesale properties.
- Multiple Listing Services
- By direct mail – purchase a large mailing list and pitch your business to your potential clients through email campaigns
- Social media – as I mentioned before, you can get find wholesale properties on social media using specific hastags like #wholesale. Make sure you also do a search in your specific area.
- Local marketing – advertise your wholesale business locally by giving out business cards, flyers, and asking around. Don’t forget – best deals can happen by word of mouth!
For more wholesaling houses step by step guides and tips, check out one of my favorite books about wholesaling, Wholesaling for Dummies. Another website with a pretty coherent step by step guide is BiggerPockets – grab yourself a cup of coffee and have a read of this pretty coherent wholesaling guide.
Hope you enjoyed this Wholesaling Houses Step by Step guide! If you have any trouble, let me know. I am always available at 801-810-8756! And if you have any properties you’re interested in wholesaling, check out our website! We’ll give you a cash offer asap!