Successful property investors and rehabbers turn to real estate wholesalers not only to find the best deals but also for the convenience.
Instead of you searching and negotiating deals with various homeowners and realtors, wholesalers are experts in finding the best real estate opportunities. They handle the ins and outs of contracting so you can stop worrying about losing a deal, and instead, focus on rehabbing, fix and flipping and your investment strategies.
How Does a Real Estate Wholesale Deal Work?
Meet Jackie. She’s a property investor managing multiple rehab projects and rental units and doesn’t have time to search listings, walk properties and negotiate deals. She relies on her wholesaler at Catalyst Funding to match her up with a wholesale real estate listing that fits her investment strategy.
For example, her wholesaler recently presented her with a 2006 property that needed minimal repairs. After a quick review of the offer, Jackie realized it needed less than $1,000 in rehab work and was the perfect buy and hold property to add to her investment portfolio.
She confirmed she wanted the property; her wholesaler made the deal happen.
With a hard money loan, she closed within 10 days. The repairs were made almost immediately, and shortly thereafter, she had a renter’s signed contract.
Jackie refinanced to a conventional loan for a long-term investment.
Working with a real estate wholesaler made for a quick and profitable buy and hold investment. Within 45 days, Jackie had money in her pocket.
How to Find Wholesale Properties
There are two ways: wholesale lists and networking.
1. Sign up for a Wholesale List
Get on a wholesale newsletter list to have available properties delivered right to you. At Catalyst, available properties go out first via email to those signed up for our wholesale e-newsletter.
2. Network with others in real estate.
Begin networking as soon as you begin investing in real estate.
The importance of networking cannot be stated enough. With deals coming and going every day, connections are vital. Attend educational events, sign up for real estate industry newsletters and align yourself with other experts in house flipping, such as hard money lenders and general contractors.
You can open doors to opportunity and be first in line for the hottest deals when you network and surround yourself with right people in the real estate industry.
How to Get Started with a Wholesaler
Wholesalers typically require a preapproval letter showing your financing is in place before they will negotiate with you.
An easy way to accomplish this is to get pre-approved for a hard money loan.
Many property investors and home rehabbers choose hard money because it’s fast, flexible, and most importantly, designed for property investors.
Hard money loans are short-term loans that get you cash fast, so you can jump on an investment opportunity and make a profit. They also allow you to leverage funds so you can manage and do multiple fix and flip projects at a time. Typically, a hard money loan allows you to rehab four houses to each single home you could do with cash.
Get preapproved for a hard money loan and find a wholesaler who understands your investment goals. No matter how big or small the investment opportunities you want, a wholesaler can be your road to success.
Catalyst Funding is a hard money lender for real estate investors in the Houston, Texas, area. As active real estate investors ourselves, we also have wholesale properties available through our parent company, Saxum Real Estate.
For more information on our wholesale properties and hard money loans, contact Catalyst today. 832.648.3626