How to Wholesale Real Estate Efficiently and Get the Best Deals
The question of how to wholesale real estate in the most efficient way possible is one that beginning real estate professionals have been asking for a long time. While wholesaling isn’t necessarily as highly profitable as other forms of real estate investing – although it can be – it is definitely one of the easiest methods. In wholesaling, you don’t actually have to own a property in order to get a profit from its purchase. Also, with outstanding offers for distressed properties the likes of which you’ll find in Pittsburgh these days, you can be certain that you’ll have a lot of opportunities in the long run.
How to Find a Real Estate Property
The first part of the problem when it comes to learning how to wholesale real estate is to find a viable real estate property. The seller you’re looking for has to be willing to negotiate, eager to sell, and based in the local Pittsburgh area. You’ll typically have to look for deals that place the price of the property as low as possible, even if the property is distressed or very old. The idea is to get the seller to accept a lower price, so you can later negotiate a higher buying price with your investor. A great way to find profitable contracts is to contact your local Board of Realtors. You can also consider online real estate websites listing new properties, or even contact local real estate agents you can trust for information.
Negotiating for a “Wholesale” Price
People aren’t always willing to part with their precious belongings, least of all a house. If you want to know how to wholesale real estate efficiently, you have to know how to talk to the seller. Find out exactly what motivates him/her to sell and move out. Is the property falling apart? Are they facing foreclosure? Do they have urgent bills or debts that have to be paid immediately? All these considerations have to be addressed before you can create an accurate seller profile. Once you do, it becomes easier to help the seller come up with a price that will benefit both you and them, while keeping in mind the amount you might be able to get from a potential investor.
Determining the Wholesale Real Estate Price
Since Pittsburgh is one of the best places to hunt for distressed properties, figuring out how to wholesale real estate will largely depend on the amount you aim for. Real estate properties in and around Pittsburgh can go as low as $50,000 and as high as $150,000, depending on the size of the property, how damaged or old it is, and how quickly the seller wants to get rid of it. In most cases, you’ll want to aim for a price lower than $80,000 for a home in a good location and with excellent potential for investing.
Closing Your Wholesale Real Estate Deal
Closing tasks can be difficult unless you have your own title company. If you do, the title company will make the entire process much smoother, doing all the work for you. All you have to do is find the best deals in the area. However, even if you’re on your own, with the help of a knowledgeable real estate expert or an experienced attorney, you can put together the paperwork and facilitate your closing. Once you’ve mastered closing deals, knowing how to wholesale real estate in the long run becomes just a matter of strategy.