How do you find the best investment properties when the MLS turns up zero, zip, zilch, nada? Get hooked up with a trusted real estate wholesaler.
Why Work with a Property Wholesaler?
Wholesalers search, negotiate and place contracts on properties that are ideal as a fix and flip, buy and hold or other investment opportunity.
Wholesalers buy the properties at a discount through short sales, marketing campaigns, etc., and then market those properties specifically to property investors.
Many property investors work with wholesalers because it saves them the time and money involved in searching, negotiating and contracting. They can instead focus on rehab work and their own exit strategies.
Wholesalers can provide a steady flow of consistent deals and valuable real estate opportunities, while you cut acquisition costs, wasted time and sweat equity.
The Value of a Real Estate Wholesaler vs. the MLS
The best way to show the value of a wholesaler is by example. Read how one Houston-area real estate investor had the ideal buy and hold property placed in her lap:
Tammy, who has worked for nearly 15 years in the real estate industry, recently turned a wholesale property into a profit-generating rental home in just weeks. The 10-year-old home, in “near perfect condition,” was presented to her as an available wholesale property through Catalyst Funding. She had no time nor money spent searching and negotiating the deal.
“It was immediately attractive,” Tammy says. “The house was perfect for a rental. The area is expanding and the market is going up, so I knew I wanted to hold it and not flip it.”
Tammy couldn’t believe how seamless and easy it was working with a wholesaler. She closed in only 10 days, with Catalyst handling everything from finding the amazing property to closing the deal.
From purchase price to ARV to before/after pictures, see how this wholesale property was turned into a very profitable buy and hold.
What the MLS Doesn’t Tell You
While the MLS can show you pictures and prices, it can’t talk. It can’t give you the professional insight and guidance you can gain from an experienced property investor, such as a wholesaler.
Successful property investors know the importance of looking beyond the aesthetics of a property. Oftentimes, the ugliest homes are the most profitable flips.
A real estate wholesaler knows what to look for in a home to determine its profit potential. However, even with professional insight, it is always recommended to do your own homework also.
Know the comps, or what the comparable homes sold for in the area. Know how to accurately estimate an ARV (after repair value). Know what interior features comps have, such as granite countertops, walk-in closets, a pool, etc., so you can accurately and confidentially determine profitability when a wholesale deal is presented.
Be Ready to Move Fast with a Wholesale Deal
Timing is everything when it comes to investing in real estate. Whether it’s how fast you can get financing or the timeframe of rehab, timing can make or break a deal.
Mike Villacis, owner of Bang It Services general contracting in Houston, flips about eight homes every four months and agrees timing is key.
Time is money, and the most successful house flippers and rehabbers save time where they can. By getting wholesale properties delivered to them, they can cut time spent searching and negotiating deals.
How to Seal the Deal on a Wholesale Property
Wholesalers will only sell to those with either a cash offer or an approved hard money loan.
Many investors choose a hard money loan over cash as this allows you to leverage your funds and helps ensure you don’t get caught in a tight financial spot. Hard money loans are also quicker and more flexible than traditional loans
In fact, hard money loans are designed for investors. They are short-term, real estate-backed loan used to acquire investment properties that can be flipped quickly for profit.
Leaving an investment opportunity sit for a day, or even hours, can be enough time for another property investor to swipe opportunity from under you.
It Takes More than a Database for the Best Deals
While the MLS gives you a huge database of real estate listings at your fingertips, it simply doesn’t compare to the convenience, opportunity and professional insight you gain from a property wholesaler.
Catalyst Funding is a hard money lender located in Houston, Texas. 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