A savvy real estate entrepreneurer is able to make a start in the real estate market by using solid real estate comps. If you are ready to start making a profit for your business, wholesaling houses could be the perfect opportunity for you. It’s the fastest, most secure way to grow your business.
By definition, wholesaling houses is when you purchase a property well below market value and then re-sell it to an investor buyer at a reasonably marked-up price. I want to share some tips on how to make those deals happen in your real estate business.
You will want to find a motivated seller in order to obtain the best deal. Most often a motivated seller could be someone who could be going through a divorce, someone who needs to relocate, or home-owners who are facing foreclosure or are behind on bills. Whatever the reason for the sale, you have to remember you make your profit when you buy. So take a good look at the property and make sure that you’re able to purchase the property for 40-60 percent or less of it’s after repaired value (ARV).
It’s time to make an offer. Every market is different, it is important that you do your research prior to making an offer. Learning about the area schools, shopping, and crime rates allow you additional insight into the real estate comps you may be using.
I hope that you are gaining insight and knowledge regarding the true value of real estate and how to make it work for you. Join me next time as I cover the next steps in the real estate asset playbook.