great deals before the general public knows about them, which is where a professional like me can be helpful. Real estate agents and brokers can search the MLS for properties. Experts in wholesaling can also help you throughout the process, which varies from a typical real estate transaction. Of course, this process won’t work if you don’t have the buyers, so you need to make sure you’ve got a thorough database complete with buyer names, contact info, and property preferences.
THE WHOLESALING PROCESS
The good news is that anyone can be a wholesaler. There’s no license required, although knowing how real estate transactions work can be helpful. Another advantage involves working with a real estate agent or broker, since they can search the MLS for properties. I can also help you find a title company that’s open to the wholesaling process (not all are). And each company has different requirements for all the parties involved, so I can educate you about that, as well.
Finding the Right Properties
When I’m helping my clients look for properties to wholesale, there’s a specific number to keep in mind: 70. End buyers (think flippers) tend to want to pay 70% of what they can get once the house is fixed up. Here’s the formula to use: fixed-up resale value – repairs – wholesale fee = max offer you should make Here’s an example if you want to make $7,000 on a home that should be worth $125,000:
180
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