If you have a little idea about how the real estate market works then you will know for sure that investing in real estate is actually a lot more different than investing in the stock market. The stock market is comparatively easier to invest in and someone with just $100 to spare can enter the market and exit whenever they wish like. On the other hand, real estate market is a lot tougher and trickier than that. The estate market is actually a lot more difficult to navigate and you might need some serious capital to invest in the market because something as measly as $100 isn’t really going to take you anywhere. Further, even if you have decent capital to invest in the market, you just can’t enter and exit whenever you feel like because it actually takes quite a bit of time to buy and sell homes.
In the real estate market things are a little more complex and for starters you will need to come with a down payment and then secure financing for your investments. Once you have this you will need to make sure that all the paperwork is in order and only once you have managed to do all of these steps well, then comes the option of closing.
If you are working with the goal of making a lot of money by investing in the real estate market but don’t intend to go through the exhaustive purchase process, then you might have to take a look at some other options that you can potentially explore. One of these options is real estate wholesaling and it has worked wonders for many real estate investors, across the length and breadth of the country, including and especially in Arizona. Intrigued? Wish to know more about how real estate wholesaling in Arizona works, then read on further.
What exactly is real estate wholesaling?
It is actually a business strategy that many investors have used over the years to make some really remarkable profits in the short-term. Some people are under the misconception that real estate wholesaling is linked to retail wholesaling but this couldn’t be further away from the truth. Wholesaling real estate is considered to be the best strategy for investors who intend to get started in the business, but don’t really have the funds or finances for the same. Many investors are getting invested in wholesaling real estate and this is mainly because one doesn’t need to take either courses or pass exams or get a license for becoming a wholesaler. All you need to become a successfully wholesaler is some basic business acumen and people skills. This market and strategy is sure to reap very rich dividends for people who identify themselves as being ‘reasonably patient’.
Here’s how you can succeed at real estate wholesaling in Arizona
One thing that all potential investors should know at the very outset is that real estate wholesaling in arizona is not everyone’s cup of tea. Unless you think you can devote the time and commitment required to reap dividends of your efforts, you should stay away and make no plans of entering this market. Further, you also need to check if you are patient enough to invest in this business and remain patient till you reap the dividends. To achieve success in the field of real estate wholesaling in arizona, you must have great communication as well marketing skills. You also must try making contacts before entering this business so that you can have a great network of investors at your disposal that might be in interesting in buying the properties that you put on wholesale.
The most important thing to know for succeeding in this business is to locate the right kind of property. You should ideally be looking at homeowners who own distressed properties and are quite eager to sell the properties that they own. Then you will need to figure out the kind of offer that you should make. The key here is to strike a rich balance because if you go too low then there’s always a chance that you might end up scaring off potential sellers. On the other hand, if you go too high, then you might not be able to find buyers who are ready to take on the risk of buying and then fixing up distressed properties.
How is real estate wholesaling similar to flipping properties?
Most people don’t realize this but real estate wholesaling is actually similar to flipping in more ways than one. In both ways, property is used for the purpose of investing so that a profit can be made on it. And both the ways entail contracting as well as selling homes in some way or the other. However, both of these investing styles do have some differences that investors must note to get a clear idea of both of them and how they differ from one, another
First of all, wholesaling real estate in arizona or for that matter any other place has a much shorter time frame than flipping the same property. And in wholesaling, the wholesaler is not required to make any repairs or modifications to the property in question.
If you look at both the options with a focus on their pros and cons, you will realize that real estate wholesaling is actually a much less risky proposition than flipping properties. This is mainly because flipping properties involves things like renovation costs and carrying costs like insurance, mortgage and also property taxes. Further, in real estate wholesaling you will need much lesser capital than what you might have need for flipping properties.