So Ya Wanna Invest in Real Estate? Congratulations!!
Real estate CAN be one of the best investments you make! I say, CAN be because it can also be one of the Riskiest.
There are several ways to reduce that risk & I’m going to tell you about it today.
If you are NEW to real estate, read this article I wrote “How to Get Started in Real Estate Investing: The Different types of Real Estate You Need to Know About”
Okay …. so… you might be looking to get started in Real Estate Investing with as little risk as possible for a few reasons.
1. You are brand new and want to learn as you invest, without investing TOO much money.
2. You are brand new and have very little money TO Invest.
3. You are Not new and like to diversify your risk.
All are valid reasons to be reading this article, right now.
Let’s talk the least risky of real estate investing: Wholesaling.
Wholesaling real estate means to get a piece of real estate under your control – it’s for sale and you have it under contract to buy …. but you’re not really going to own it …. at all or for long.
With Wholesale Real Estate investing, you assign, flip. or sell your contract for a fee. This fee is typically $1,000 and higher, depending on the type of real estate (See my article on Types of Real estate investments to learn more) and how much work is needed to get the property into Like New shape to rent or resell.
It also depends on the price YOU get the seller to agree to sell to YOU for. The lower the price from Like new shape you can get it, the better for you AND who you sell your contract to.
Here’s the KEY though, never be too greedy. Reread those last 4 words. You are FAR better off getting less today so you can continue to Wholesale or Flip your contracts to buyers who want to continue buying from you. Repeat business will be where you make your money, not just the deal today. You want to think Long Term.
So the basic ingredients to wholesaling real estate are: (in this order)
1. Buyers – preferably CASH buyers to assign or flip or sell your contracts to for quick closings (think 14-30 days)
2. Real estate to buy & then sell (of course!), sell low, buy lower.
3. Close – this is where you earn your money! Rinse & repeat!
Your FIRST step is to have Cash Buyers. To learn how to build your list of buyers, go to my article “Real Estate Investing: How to Build a List of Cash Buyers, Fast”.
To learn more about how to get the real estate – or more specifically, the sellers who will sell Below market value, read my article: “Real Estate Investing: How to Find Distressed Sellers & Undervalued Properties”.
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