Wholesaling real estate has several advantages compared to other forms of real estate business.
Here’s one helpful tip; as long as you have the right connections and as long as you have strong social skills and an extraordinary ability to negotiate, you are good to go.
And as most businessmen say, any form of business starts with great guts and the will-power to succeed.
Here are some of the top advantages of wholesaling real estate;
You don’t need a huge capital to get started
You can start real estate wholesaling with little to no money as an investment. You can make use of whatever amount you have to initiate the process and to work on a strategy.
One good thing about this venture is that it is negotiable with the home seller and you can start with just a few hundreds of dollars in your pocket.
If you are able to negotiate your contract correctly and strategically, there is a very minimal chance for you to fail.
And in any case the deal becomes unsuccessful; you’ve got almost nothing to lose from the transaction.
You don’t need to apply for a loan or secure financing
Since you can start real estate wholesaling with almost nothing in your pocket, you don’t have to go through the lengthy process of applying for a loan or approaching various lenders.
Basically, you are not actually closing the property in wholesaling. Instead, you are selling the contract to another buyer.
This means that you don’t need to secure financing to make the transaction happen.
There is also no need for equity which means that you don’t have to make a down payment. It is just the escrow fee that you need to invest on.
You don’t have to deal with repairs and property maintenance
You don’t have to assume the role of a landlord and take care of the repairs and maintenance of the property.
Technically, you are not the owner of the property but rather the owner of a good deal which is in the form of a contract.
This means that you do not have to exert time and effort or to lay down some funds for the regular upkeep of the property.
Wholesaling real estate makes a good entry level for beginners. If you are not yet sure if real estate is the right field for you, wholesaling can offer you an opportunity to learn the ropes.
This can help you come up with a better decision when it comes to your career choice. Finding real estate deals to wholesale can be a good start.
Furthermore, you can practice your ability to negotiate and to make deals without investing a lot of money.
Offers a faster way to earn cash
Wholesaling real estate offers the advantage of being paid faster.
Keeping a piece of land, getting into construction and fixing and flipping houses can take months to years to pay off.
Some people are not even motivated by the idea of renting off their property. They prefer to sell it for larger returns.
And the fact remains that such ventures require a huge capital investment.
Although these are all decent ways to generate profit, wholesaling comes out at an entirely different level because it can pay off within weeks or even a few days and without having to apply for a loan.