- Business and Employment
Real Estate Wholesaling and the "Sell Your House Fast for Cash Real Estate Niche-Is it a Good Newbie Niche?
Sell Your House Fast for Cash-Is It As Easy as the Gurus Say?
We've all seen the advertisements...Sell Your house fast for Cash...We Buy Ugly Houses...
Yes, we've seen them on bandit signs and on early morning tv commercials, but what is this promise to buy your ugly house really all about? It's part of 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 to sell. These homeowners are often experiencing life situations that make it necessary for them to sell their home quickly, and as a result, these homeowners are willing to sell below market value just to benefit from a speedy cash 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. Homeowners sell quickly, thereby eliminating whatever their problems they may be facing. Wholesalers serve as middlemen between cash buyers and sellers.
Being that there are so many different avenues to pursue in real estate investing, newbies investors 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. More often than not however, new investors will choose wholesaling due to the fact that it CAN have a relatively low start up cost. You can have very little equity and wholesale properties, but that path is far from easy.
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 must be worked to see what constitutes a profitable deal for your cash buying investors. It is ALL a numbers game, and if you stick to the 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.