BECOMING A SUCCESS IN REAL ESTATE
PART two - wholesaling

PART TWO OF A SIXTEEN PART SERIES AND THE INVESTMENT STRATEGIES TO MAKE IT HAPPEN

Welcome to Part TWO of our SIXTEEN part series, "Becoming a Success in Real Estate". We are sharing the SIXTEEN proven strategies that you can use to build your business and become a real estate success.

In the first part of this series we discussed flipping houses or fix & flips. If you missed it, or any other part of the series, click here to catch up: https://gocanadianmortgage.com/blog/

In Part Two of our sixteen part series, Becoming a Success in Real Estate; we will have a look at the process of Wholesaling.

Wholesaling could be an excellent strategy for beginners in real estate investing because it typically can be accomplished with little to no significant money of your own at stake. This can also be a great avenue for investors with bruised credit or inconsistent income.

Wholesaling in real estate means you act as a 'middleman' for properties on sale. This process has very few steps but each step can be, and usually is, quite difficult to accomplish.

All you have to do for the potential to earn a substantial profit from wholesaling real estate is follow these simple steps:

1. Find under priced real estate and target a property
2. Negotiate the purchase of your target property
3. Find a buyer who can and is will pay a higher value

Now, I know you are probably asking yourself, "nothing is that easy" and "why would someone simply pay a higher price then I did?"

Those are the logical questions to be asking yourself, but I can tell you that those questions do have answers! Lets look at each step closely and find out how and why this system can, and does work.

Finding and negotiating the purchase of a property that you intend to wholesale can be done a number of different ways. However, purchasing a property before it is even built is the number one method to make a killing with wholesaling.

Buying a pre-build home or condo (purchased before construction) is the number one most effective way to make a profit from wholesaling. If the timing is right, you could earn as much as 5x your investment within a two year span. That means if you invested $50,000 on a wholesale investment, you could see a return of $250,000 in only 2 years. Not a bad income for probably the least amount of work you will ever do in your life!

Since wholesaling pre-build real estate is such a popular investment strategy, most sale agreements have an assignment clause built into the contract that you should be aware of. Purchasing pre-build's are not the only way to wholesale.

Keep you eyes open for any new realty listings, frequently visit private sale sites or auctions. You could also target abandoned properties or opportunities to divide or sever an existing piece of land.

Wholesaling may sound like flipping and there are some similarities. Here's the difference between wholesaling and flipping?

Real estate wholesaling is similar to flipping in a lot of ways. Both use property as a means to invest and make a profit and both require contracting and selling a home in some form or another.

However, there are key differences between the two. The wholesaler does not make any repairs or modifications to the home and many times they may not even take possession of the property into their name.

Since the wholesaler never actually needs to purchases a home, real estate wholesaling is much less work than flipping. The latter often involves renovation and carrying costs such as a mortgage, property taxes and insurance.

So what does this strategy really require?

All you need is sound knowledge of real estate and the market, but strong negotiation and networking skills never hurts. Deciding weather or not to start Wholesaling is a decision that needs to be made by each individual. Having said that, the track record on this method of real estate investing is solid.

Millionaires have been made and many were able to fund their start with NONE of their own money! Want to find out how?

If you have any questions or would like to schedule a phone call, you can schedule one directly here: https://gocanadianmortgage.com/book-now/   

Find the rest of this 16 part series and our blogs here; https://gocanadianmortgage.com/blog/

Plus...

Don't forget to keep on eye out for our next post, the third and fourth parts of our series; Becoming A Success in Real Estate - Short & Long Term Buys

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