People love spontaneous decisions. Theres this thrill brought by acting on impulse. If youre among those who are excited because you heard that you can start wholesaling houses without a capital, hold your horses! It is true that you can start in this business even without the money to buy a house. However, it is imperative that you know how this system works. Some pointers wont hurt as well. So before you start wholesaling houses, read these reminders first.
This business is defined in the simplest terms as quickly buying and selling property for a profit. You dont technically buy the house because you just put it under contract. You will then sell that contract to buy the house to another wholesaler or a rehabber. You will get an assignment fee for this. It is important to note that you will work under time pressure because a contract to buy a house will only valid for days. If you dont find a buyer fast, you will pay holding costs and that will lessen your profit.
Wholesaling houses is about hunting for motivated sellers. Do you even know who they are? These are home owners who are motivated to sell their properties. For various reasons, what they care about is selling the property fast. This puts you in a better position to negotiate and dictate the price of the property. Recent divorcees are considered motivated sellers. They just want to sell their property because they are probably exhausted with the proceedings. Owners who have lost a loved one in that property or those who inherited the property in question are also considered motivated sellers. Apart from owners who are struggling financially, families who have already bought a new property and motivated to sell their old home.
Lend an ear. Showing a little sensitivity to your seller is a sign of a good negotiator. Remember, you need good negotiation skills in wholesaling houses. It will also help to take note that you are dealing with motivated sellers and these people may be battered emotionally. Dont make it appear as if you want to dump more pain to them by taking away their property. When negotiating with the seller, be sure to listen to their story and why they are selling the property. Tell them that you help them by offering a reasonable price for that house.