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6 pillars of successful wholesale houses

What does it really take to be successful in wholesale houses? Not only succeed in selling a single property, but do so profitably repeatedly in sufficient volume to meet all of your financial and lifestyle goals, and even build a wholesale real estate business that can offer even more than that? ?

For those who want to be successful month after month and enjoy a long and profitable wholesale home sale, there are six fundamental principles to focus on…

1.Find the offers

Nothing else really matters unless you can sign deals. Depending on your goals, prospecting for deals can range from direct mail campaigns to blowing up the MLS, driving neighborhoods and knocking on doors, online wholesale marketing, or all of these. The more leads an investor sets up to hit their desks daily, the higher the potential volume.

2. Buy low – Sell low

Real estate investors should remember that the key wholesale strategy is to buy low and sell low. Never stray from making your money when you shop. Also, don’t be too greedy or overvalue your offers. There may be times when properties are transferred to retail clients for higher spreads. There’s no reason not to make a lot of money in dollar terms on deals either, but there has to be enough left on the table to make them attractive to other investor buyers.

3. Build trust

This implies the three R’s of wholesale houses; Repeat business, References and Reputation. By building trust, respect, and value with buyers and within the real estate community, wholesalers will build a strong reputation and enjoy lots of repeat business and referrals that can be even more profitable than direct wholesale marketing.

4. Always offer good deals

Based on the two previous points and combining them, it is essential to always offer good offers. This is not just about price. It is also about providing accurate and reliable information. This may require some due diligence, assessing repair costs, and ensuring it is a marketable property with a marketable title. If there’s one thing buy-and-hold investors hate that will quickly destroy wholesalers’ reputations, it’s stealing from buyers.

5. Create a list of buyers

Building a list of buyers can make wholesaling large volumes of homes a breeze. With a large, qualified list of end buyers and a good reputation for being trustworthy houses, they can flip almost instantly. Some advanced investors even go so far as to take pre-orders with at least some money up front.

6. Striving for consistency and growth

It is really difficult to maintain the status quo in any business, especially in the real estate industry. Always strive for growth and stay consistent with wholesale marketing and small tasks that may not be as exciting, but produce big results given enough time.