Jumping into the business of real estate wholesaling is a
big moment. You see the prospects of bigger revenues, and you have the energy
level to balance multiple roles in your business. These multiple roles usually involve
generating leads to qualifying leads, meeting with the motivated sellers, and
marketing properties. But after a while, it started becoming exhausting for you to
manage these multiple roles.
When you are doing this business, you have to know what is
involved in your everyday business and how you can structure your team. So when
your business grows, you distribute responsibilities among your team and
consider the workforce enhancement when required.
Breakdown of the business model
No matter what wholesaling strategy you want to go with,
there are three components that you need to consider, i.e. acquisition,
disposition, and transaction.
Let’s start with acquisition.
1. Acquisition
Acquisition is referred to the process through which you
acquire the property. You can do this by generating leads, acquiring the
property, following up on offers, communicating with the motivated sellers, and
then converting leads into deals.
In this scenario, you first have to understand how to
analyze the deals. This way, you will know if the deal you are considering is
the right one for you.
As a wholesaler, you will need to help the motivated sellers
get out of the distressful situations. You will need to make them talk to you
openly about their concerns. For his purpose, you will need to build rapport.
This way, you will be able to know about the level of motivation in the
sellers.
During the process, it will be easier for you to notice that
many of the sellers interested in selling their properties are not truly
motivated to sell. It is quite important for you to know how serious those
sellers are about selling their properties.
One thing that you are going to have to make sure in this
process is that you understand purchase agreements well.
2. Disposition
The process in which you sell the property, build
relationships with the buyers, or market the property is known as disposition.
This process starts with building of rapport.
Real estate business is all about building relationships for
the mutual benefits. Moreover, you always need to know the party you are
working with very closely. In this scenario, you have to sense whether the
investor you are working with is interested in one-time deal or he/she wants to
work with you on long term.
The nest thing you need to be concerned about is the
marketing of your property. There are several channels that you can consider
for the proper advertising of your property. You can use craigslist and/or
social media to get your property properly advertised.
Make sure that you properly understand the closing
procedures. Since you are going to have to communicate them to your buyers or
investors, you are going to have to fully understand those terms.
3. Transaction
Transaction is the phase you have been working for through
all along the process mentioned above. This is where you don’t want the things
to go south. This is the reason that you need to make sure that you know the
closing procedure well. Proper documentation is the key in this regard. Your
organizational skills are going to matter the most here. You have to make sure
that you are shifting the control of property to the buyer in a swift manner.
