How to Start a Wholesale Properties Business
- 1). Decide what type of wholesale property you want as inventory. Wholesale property can be any type of real estate such as a single-family home, a condominium, a duplex, a commercial building, or an apartment complex. A single-family home is a single unit with a frontyard and a backyard. Condominiums and duplexes are residential properties that have shared common areas with other residences. An apartment complex houses multiple tenants to generate rental income, and a commercial building is a property that leases space to businesses. By selecting the type of wholesale real estate you want to buy, you will be able to better focus your marketing efforts on a specific type of investor.
- 2). Find wholesale properties to buy at bargain prices. There are three ways to find wholesale properties: Contact a real estate agent, conduct an Internet search, or directly contact property owners. A real estate agent can search the multiple listing system (MLS, an online database of properties) for properties that fit your price range, property type and location. Agents also can arrange for you to tour the property. Visit websites such as WholesaleRealEstateSource.com to begin your search. This website has wholesale property listings in multiple states to review. If you choose to contact property owners directly, pick a targeted area to canvas and mail informational material about your wholesale real estate business to property owners and explain you would like to buy their property at a discount price to help them avoid foreclosure.
- 3). Buy wholesale properties and stock your inventory. Either hire a real estate agent to help you complete purchase agreements and place bids on properties or download a purchase agreement from the Internet and submit bids on your own to property owners. Stock up on as much inventory as you can afford to buy and that you have the time to maintain. All of your wholesale properties should have well-kept lawns and be monitored regularly to avoid vandalism and squatters (people who occupy vacant property).
- 4). Get bird dogs to find investors to purchase your wholesale properties. Bird dogs are professionals who are paid referral fees to provide investors with leads on people who want to buy wholesale property. Post a job ad online to hire a bird dog.
- 5). Market your wholesale properties to buyers. Place an ad in the local newspaper advertising bargain properties, hire a real estate agent to list the properties in the MLS, or market your inventory on the Internet on websites such as Craigslist.com to find property investors.
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