Does Wholesaling Houses Work?
“The links in the post below maybe affiliate links for which I’ll be compensated”
Some investors are wholesaling houses full time. While some maybe haven’t ever done a real estate deal or they’ve only done a few. Then there are some doing hundreds of deals. A question most investors ask themselves at one point (Usually the beginning) is does wholesaling houses work? Or how to wholesale houses? It does absolutely work. Brian Rockwell did $124,000 in a month and does over $600,000 a year! You can check more about that story here or click the picture below.
How To Wholesale Houses?
First off, if you’re brand new or newer then I’d definitely recommend you check out this book about wholesaling houses.
Most people know the basic concept of it. You find a house that needs a lot of work, behind on taxes or payments, ETC, that you can get into contract for cheap. You then get paid by assigning your contract to another investor who will buy the place to usually fix and flip or rent. The reason a seller would be willing to let their house go for so low is because it has major problems they can’t afford or they’re behind on payments or taxes so they need it gone ASAP.
- You contract on a house for $40,000.
- House fixed up is worth $140,000.
- You assign your contract to the flipper for $60,000.
- You Make The $20,000 Spread.
This is just a simple scenario. This leaves enough on the table for the flipper to pay for the repair costs and so on while also making him or her a big payday too. It’s only a good deal if everyone wins. Remember that. You will need to know your market well but also (IMPORTANT) you will need to have buyers lined up to quickly sell these homes too…
Something you’ll rarely hear people talk about is that when you have a list of a great buyers and you get a property under contract, if it’s a good deal then they will bid against each other which will make you more money! Want some great ideas on how to grow your Cash Buyers list? Check out Daniel’s story here of how he grew his list over 1,700+ buyers, making him an extra $180,000 in 12 months.
How To Find These Houses To Wholesale
This is the biggest question of them all when it comes time to get started. It’s also the hardest part typically and where it either makes or breaks your real estate investor career. Let’s face it. You’ll never be able to wholesale or do deals if you don’t have motivated sellers coming to you or without knowing where to find them.
Here is a list I put together, after tons of research and studying. This is what some of the biggest investors are doing to get those massive paydays. Pay Attention To This!
- They all have a website to bring in leads… More importantly the #1 preferred site for investors.
- They’re all using RVM(Ringless voicemail) or bulk texting to their lists. A service like Call Loop is making investors a lot of money. Especially if you don’t like cold calling.
- Bandit Signs…. Everyone has heard of these. It’s usually the first thing investors try. It can be very competitive! You can get them pretty cheap here.
- Some use postcards or yellow letters but most are going away from that because the conversion rate is low and it’s costing anywhere from $2,000-$5,000 to actually get a lead that closes.
What I’ve seen is that most of these investors are using the website I listed above and paying to run ads to it along with the RVM or text broadcasting service or similar I posted above. What I’ve noticed is that with the online marketing, they’re getting extremely targeted leads that have a much much higher conversion rate.
So Does Wholesaling Houses Work?
It certainly does. The #1 thing is knowing how to get the houses so you can get paid. You can learn all sorts of tips and tricks on Youtube and overall research too.
Here, check out this training on how these investors are doing hundreds of deal a year. It will take you inside their business so you can see exactly how they’re doing so well. Hopefully you or someone you share it with can learn something from it.
Real Estate Vitamins was created because of the massive amount of real estate professionals that needed help with their marketing and sifting through all the different services out there. As a real estate pro who constantly is getting cold called with services and so on, this blog aims to pinpoint what truly works with the cream of the crop professionals and how you can model that for yourself.