Create an Explosion of Cash in Your Real Estate Business Today!

If you do an Internet search for “real estate investing” you will come up with a plethora of ‘gurus’ telling you that you can make millions with their magic formula. Most of them will tell you that you can do it with very little or no money down-just make sure you send them money for their ‘secret report.’I am a successful real estate investor and I have built my portfolio with little money and I have never owned many of the properties that I sold. However, I didn’t have a magic formula or thousands of dollars in my pocket. I worked hard, listened to some smart people and chose the easiest way to make money in real estate investing. The method I used is well known among those in the “industry” but many have never heard of it or know how it works. I am talking about wholesaling. This is not the kind of wholesaling that Sam Walton began at his famous warehouses. In fact, you don’t need an inventory of homes to be a wholesaler. And you can begin with as little as $10 in your pocket.After learning the concept of wholesaling, you may think it is pretty simple. Some deals can be. But to consistently make money as a wholesale investor, you will need certain skills and non-monetary assets which I will explain.Wholesaling DefinedI will explain what wholesaling is with an example of how it works. John Doe has a house for sale. The house may need some repairs or it may be in a neighborhood that is not very desirable. You know that Jack Smith is always looking for good investment property. For some reason, he may have seen this house or he may just need to be sold on its value. But if you just introduce the two, you won’t make any money.So here’s what you do. You approach John and tell him you would like to purchase his property. All he has to do is sign a contract allowing you to do so. You make him an offer and always put down as little earnest money as possible. I always put $100.00 down on my contracts and usually the owners never say a word about it!With the contract in your hand, you call Jack and tell him about this great investment property you have found. You meet him at the house and quote a price that gets John his money and you a sizable commission. If you were right in assessing that Jack would love the property, it will probably be an easy sale.Let’s just say that Jack decides that the property is not for him. If you are a good wholesaler, you will have other buyers on your speed dial that you can call and you will have a buyer for John’s property in a matter of days and a hefty commission in your pocket. And you will have never owned the property!!How to be a GREAT WholesalerThe above example illustrates the only skills you need to have to be a great wholesaler.
o You must have an eye for a great deal. And the best deals are not found in the MLS listings. You can be driving to your office and see a “for sale” sign on a property that has been there for several months. That seller is probably motivated and will likely listen to you if you approach them about selling the property. Make sure you calculate the “after repair value” (AVR) to make sure it is truly a great deal.o You must have great people skills. Call this being a great salesperson or just being a “people person” but the better you come across to the buyer and the seller the more successful you will be. Remember, most people can spot a fake a mile away. Be sincere and up front with you buyer and seller and you will do well.o You must have a great list of buyers and sellers. You can generate a great list by networking, running ads in local publications or cold calling. Without a great list of buyers and sellers, you don’t have a business.One final note-you may think you have to have a realtor’s license to wholesale but you don’t. Just make sure you have a viable contract with the seller and you can start making money!Expect Abundance and Nothing Less!!!