The Three Parts Of A Woodland Hills Wholesale Deal
When new investors in real estate get started, many of them overlook the option of a Woodland Hills wholesale deal as an investment option. The truth it, they’re missing out on a lot.
Wholesaling works when you pass a property at a lower, discounted price onto another investor. Once you do, you’re given a predetermined fee. Over the course of 30 days, you’re in and back out again. You may not get as much money for a full rehab project, but you’ll protect your investments and grow your portfolio if you do at least one Woodland Hills wholesale deal a month.
Thinking of getting started in wholesale? Here are the three parts of a Woodland Hills wholesale deal that you need to know.
The Deal Aspect
No matter what type of investing you do, getting a good deal should always be a priority. Your deals need to make you some sort of profit so it’s important to be on the lookout for the best ones. For a Woodland Hills wholesale deal, you’ll need to find sellers who are extremely motivated and will offer huge discounts to get off their properties.
Homeowners who need to move, landlords sick of tending to a property and lenders who are trying to get rid of a foreclosure are some great targets for wholesale options. They are usually the most motivated to sell, but that doesn’t mean you’ll automatically get the best deal. You’ll still need to negotiate and bargain without getting the seller angry.
The Right Property
Wholesale properties are a horse of a different color. Even if you get a property with a discounted rate, you may still have trouble finding an end buyer.
The best properties will have the opportunity to add value, which increases profits and entices buyers. Before you bring a wholesale property to an end buyer, make sure you have estimates for the costs of any repairs or rehabs. This will show buyers what they’re getting into. You should also get all disclosed material together and check for any dangers to the house, such as cracks in the foundation.
You will also need recent comps, or comparable sales, to show that your improvements will actually add value. Not all repairs and rehabs add value to a home, so having an idea of what the home will be worth after the rehab is key.
An End Buyer
You won’t get very far without good end buyers. With wholesale investments, you need to move quickly from one deal to the next to maximize your profits.
Network with other Woodland Hills investors and get to know what they like to buy and sell. Doing so will build your end buyer list. When you find a property that matches their portfolio, you can mention it to them to gauge interest. You want to be sure that they’ll be quick to close, and they’ll need you to answer plenty of questions rapidly. Make sure you do your homework and stay attached to your phone and email
Wholesale options are great for investors looking to make money fast and efficiently. The deals move quickly, so you can keep buying and selling, which opens you up to plenty of new possibilities. While rehab projects can get you a larger profit, they do come with risks if you’re not a wholesaler.