One of the best strategies to use for beginning real estate investors is Wholesaling. Why is this technique a great
beginning? Because wholesaling properties does not require the investor to use
any of his or her credit or money to complete the deal (as long as you know
what you are doing).
So what is wholesaling? Here is how it works: An investor finds a property well below its market value, gets the property
under contract, and then assigns or sells the CONTRACT to another investor or
buyer to complete the purchase!
You do NOT improve the property; just get it under contract and SELL the contract to another investor who is looking for a house
in need of repair. That's it! It's as simple as that! You can typically sell a
CONTRACT for anywhere between $500 - $10,000+ profit!
What would be the steps necessary to complete a successful transaction?
Step 1- Determine the After Repair Value (ARV). The best way for beginners to determine ARV is to utilize the services of a Realtor.
Step 2- Calculate the repairs. Do a quick drive by, look the property over, and
determine what repairs may be needed. As a rule of thumb, it is a good idea to
figure in a set amount as repairs when making an offer.
Step 3- Make an offer. Understand that you are making offers that will benefit your
business, so your asking price will be lower than what most people's
expectations are. Expect 90% of your offers to be emphatically declined, 10% of
your offers to be countered, 5% to be interesting, and 1-3% to accept.
Step 4- Get a Buyer. The ideal situation is to have a buyer in mind by the time you have a property under contract.
Step 5- Collect $5,000!
For beginners looking to get started, I highly recommend networking with others who
are more experienced than you. This mentorship will allow you to learn from
others mistakes. Having the support of others will also assist you in
overcoming any fears that may be holding you back from taking action.
Hey this one is great guidelines will definitely helps for beginner.. also if want to increase your business in real estate then you can go with infusion soft software which will give improvement on business...
mark slosar said:Hey this one is great guidelines will definitely helps for beginner.. also if want to increase your business in real estate then you can go with infusion soft software which will give improvement on business...
Beware of this Scammer!!
Laeeque Ahmed is famous for selling at asking price, if not for all the other scams. Maybe next do some research on people before you deal with them. Thank god for forums and blogs.