Wholesale Real Estate Pro

Step One, Doing your homework.

This is one of the more crucial elements to becoming a wholesale real estate investor that people miss. There may be some businesses out there that you can just dive in to without doing any research, but I don’t recommend it for this one. I even recommend for those who have a little bit of experience to really think about whether they are educating themselves or not.

As a wholesale real estate investor It’s important to understand some of the aspects of the business and what you are looking for in particular. Although you don’t need to study for months at a time to be successful, you will need to do a little research.

Where to start your research

1. Pick some neighborhoods as your target. One or two will do to start. The more narrow your focus is, the better your results will be. We are looking for median neighborhoods to start our wholesale real estate business. So ideally neighborhoods where middle class folks live. Cookie cutter neighborhoods are a great place to start, you know where all the houses look the same. Depending on your area, will depend on the price points. A good gage is an average of 150,000 priced homes in most areas. Houses built in 1970 or above are best as they usually have less problems. Brick ranch style houses are great!
2. Get to know your target neighborhoods. Drive them daily, twice daily if possible. Look for signs of crime, heavy foot traffic or any other red flags. Remember, you want to buy a house that will sell easily to someone with a family or that will feel safe. Although you will not be retailing the house yourself, the person buying it from you will be and they won’t buy it if it’s in a crime ridden neighborhood. Start looking for vacant or abandon houses, these are your first target properties that you want to focus on. Write down the information such as the address of the house, what it looks like, what kind of condition it’s in, etc. You will need to know all this. In future articles we will get more in to detail about these items, but for now you just need to familiarize yourself with the neighborhoods.
3. Get some comps. Comparables are necessary for you to know how much you can pay for the house or at least get it under contract. So, if you are familiar with Real Estate and feel comfortable doing your own comps you can always go on Realtor.com and pull area specific comps. The only problem here is that you don’t get a lot of the important information. I would recommend talking with an agent or a broker to get some true comps. You need to know: average days on market, price per square foot, % of asking price obtained, etc… Remember to only compare similar houses, for instance you need to have different comps for a one story and a two story house. Make sense? Good!

Okay, now you have someplace to start. Get started on doing your homework and I would suggest not to cut any corners. Spend some quality time on this, after all you are building a brand new business for yourself so give it 100%. If you are not willing to do this step, then you might just as well quit now because you WILL FAIL!  

 Learn more about wholesale real estate simply just keep coming back.

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