Sometimes you just don’t have money to break into the real estate industry or even cough up the loan-to-value to tap into money from hard money lenders. Not to worry. Many times, it takes people years of saving or a bit of hustle to get into the real estate industry. Being too short on savings to invest drives many to find wholesale-real-estate units to sell to other real estate investors. Finding homes to wholesale is a great way to break into the real estate industry because it builds an understanding of supply and demand, market value, and networking.
What is a wholesale home? Well, when it comes to real estate investment, wholesale homes are homes that can be bought under average market value, be renovated, and be rented or sold for a profit. Usually a wholesale home is a distressed home that needs some tender loving care. Finding these distressed homes takes work—but offers rewards.
Where to start. One of the ways many people start finding wholesale property is by “driving for dollars.” Driving for dollars means cursing your neighborhood to find homes that have need of repair, have no inhabitants, and have elderly residents tired up upkeeping. Maybe add to the list individuals who rent out properties that are tired of driving long distance to manage. Nice. Sometimes finding these individuals takes looking at property tax records to find the owner, Facebook ads soliciting renters, and more. Nonetheless, the method doesn’t change. Drive, search, locate, and send a friendly message. Say that you are a real estate investor interested in acquiring property, and you are interested in offering a price for said property. Many wholesalers drive and send a personal letter to the owner with a name and number to contact:
Dear John Doe,
You are. You buy real estate locally. You’d like to offer a cash value for the 1111
CAMBRIDGE RD property in Phoenix, AZ. After negotiations, can close as quickly
as 10 days. If you are interested in selling, please call or text us at (XXX) XXX-XXXX.
Upon response, the wholesaler has a researched offer to give to the owner. Upon negotiation, if the amount is not accepted, or closely reached, many wholesalers will leave the offer on the table and walk away. Walking away gives the owner time to think about the money presented before them and come to a conclusion. Many times, leaving an offer on the table results in a sell down the road. If you get the approval, make sure you have researched local real estate investors who are willing to purchase the property. Mark the property up several thousands of dollars to compensate your effort, then repeat.
Over time, and with a sufficient number of wholesale clients, you may just have enough money to start to invest in real estate on your own. Enough money to contact hard money lenders who can help you into the real estate industry. And that’s the gist: save money, wholesale, and invest with hard money lenders.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.