If you are looking to get into real estate investing but don't know where to get started, there are several ways for beginners to get into real estate, depending on their goals. One of the most popular and easiest ways to invest in real estate is real estate wholesaling. This is a great and cost-effective way for anyone to make money in real estate when they don't have enough capital to invest.
If you understand the pros and cons of wholesale real estate correctly, you'll have the advantage of being able to find great deals, buy properties and learn innovative ways to fund the properties you get under contract. To help you get started, here is a guide for wholesale real estate for beginners.
Decide Your Goals
Before you think about acquiring property, you first need to lay out your goals. Start by creating a short-term goal that you want to achieve in the first year of investing in wholesale real estate. Also, create a medium-term goal that should be completed between 1-5 years and then long-term goals for the first five years in wholesale real estate investing. When you create a revenue goal, you will get a clear perception of the number of properties you need to buy.
Learn How Wholesaling Works
If you want to invest in real estate but don't have enough money or a good credit score, don't bother. Wholesaling is one of the best strategies for beginners looking to invest in real estate. You don't need any capital or a good credit score to complete a real estate deal if you know how it works. So, to invest in wholesale real estate, you need to do your research and due diligence.
Let's say you find a home that is under market value. As a wholesaler, you will get under contract with the property seller and then find an interested buyer or investor to sell the contract to. And the investors will complete the property purchase with the seller.
Build Your Wholesale Real Estate Investing Team
Now that you know how to wholesale real estate, it is vital to have a solid team that can help you. In order to complete a real estate transaction, you will have to work with many industry experts, so it will be in your best interest to have relationships with them. Your core team should consist of an attorney, real estate agent, title company, property manager, accountant, and contractors.
Find Wholesale Real Estate Deals
You have your goals, know how to wholesale real estate, and have your strategy and team; it's not time to find your first deal. Keep in mind that you may have to go through several real estate deals before finding a good deal that is profitable. It takes practice and experience to look through deals to get a feel for the right ones. As a beginner, we would suggest setting a goal of about 20 properties per day to go through so that you can build your skills and experience at analyzing wholesale real estate deals.
Do you have more questions about wholesale real estate? Contact Real Estate Disruptors today!