We've all seen the advertisements... but what is that really all about? It's a real estate niche called WHOLESALING, and with a surprisingly massive range of exit strategies within the business, which provides the best opportunities for relatively new real estate investors? There are many who insist that wholesaling is the best real estate niche in which to start your investment career, but are they correct?
So WHAT is wholesaling you ask? It simply consists of buying homes for cash. These homes are often distressed and the sellers are often highly motivated. Sellers often are experiencing life situations that make it necessary for them to sell their home quickly, and as a result, they are willing to sell below market value just for the speed of the transaction. The cash buying investor will then rehab the home and sell or hold on to the property and rent it. It is all a numbers game, and homeowners are offered an amount that will result in an investor profit, yielding a return on investment that will more than compensate for the risk taken. Wholesalers serve as middlemen between cash buyers and sellers.
Being that there are so many different avenues to pursue in real estate investing, newbies to the field may often be overwhelmed in choosing the best way to get their feet wet. There are a huge variety of options available to the new investor, such as fixing and flipping homes, acquiring foreclosures with the intent to rent, providing lease options, wholesaling, flipping real estate contracts, or becoming a real estate broker.
The best path or strategy for new investors will depend upon their own personal goals, talents and resources. However, no matter what your long term plan is, there are some very good reasons to start in the wholesaling niche.
Real estate wholesaling has a tendency to be looked upon in an unrealistic fashion. Misinformed individuals perpetuate stereotypes that build up wholesaling as an easy and quick way to make money in real estate investing. According to many gurus out there, wholesaling will make you rich if you just follow their guidelines to a tee. As a result, new investors may delve in with unrealistic expectations, and not focus on what it REALLY takes to be a successful wholesaler.
Wholesaling is all about the marketing. Once the marketing takes off, it is all about helping people out of tough situations. Then, the mathematician takes over and numbers are worked to see what constitutes a profitable deal for your cash buying investors. It is all a numbers game, and if you stick to your numbers without compromise, you will be provide your seller and investor the best possible service in your niche. It can be a win-win situation for the seller, wholesaler and buying investor, but it does take a lot of hard work, determination, creativity and ethical fortitude. It can definitely be gratifying in the end however, and well worth the effort it takes.
At Diamond Real Estate Group, Sell my home fast for cash, Homes for sale in NAPA CA and Homes for sale in SONOMA CA. Visit us for more information.