Wholesaling for cash flow in any market is key to growing a successful real estate investing business. Seasoned real estate investor understand that cash flow is what keeps the doors open between market cycles. No other investing strategies comes to close to generating as much risk-free cash flow as wholesaling houses. Wholesaling for cash flow has a low barrier to entry, basic fundamentals that can be learned and mastered quickly, and provides a great starting point for investors to take properties into multiple exit strategies.
Wholesaling properties is the quickest way to improve your skills against the three challenges to real estate investing in any market. One – locating and negotiating with motivated sellers; Two – locating and negotiating with motivated buyers; and Three – creating and managing a profitable transaction. These three challenges exist in every market, all the time. The same basic challenges existed before any of us were even born and can be traced all the way back to when people first starting dividing up and owning land! Mastering the skills needed to meet these challenges is at the core of becoming both a successful wholesaler and building a thriving real estate investing business.
Now, most resources teach you to go after the property first, send in a low offer, then market to cash buyers. The truth is that strategy was effective before the last real estate bubble burst. You could get just about anything under contract and it could be assigned to a buyer faster than you could stick your key in the ignition and drive to the next one! But times have changed. Locking up the wrong type of property now can be a source of much frustration, especially for the newest of real estate investors just starting out.
Instead, the best way to start is to go after the buyers first. The idea is that when you control the buyer, you control the deal. It’s simpler than you think. Once you know where your buyers are willing to purchase and the exact type of deals that they are looking for, then you spend your time targeting and acquiring exactly those types of deals! Then once you call your buyer with the next deal you lock up under contract, they’ll be ready, willing and able to take that property of your hands and pay you an assignment fee.
Wholesaling for cash in this market is about understanding the types of deals that buyers are looking for right now. In this way, you aren’t so much a real estate investor as you are a real estate marketer! Learning to consistently market for buyers, market for sellers, and create win-win-win transactions is the core of building your real estate investing business around the cash flow you’ll generate wholesaling properties.
Marc Imhof , also known as The Wholesale Coach, teaches investors how to build their real estate investing business around multiple niches using advanced techniques, strategies, and tools.