Are you interested in investing in real estate by wholesaling houses? Wholesale real estate is a popular investment strategy that involves buying properties at a discounted price and then selling them to other investors or end buyers for a profit. But how do you find these properties to wholesale? In this article, we’ll provide you with a step-by-step guide on how to find houses to wholesale.
step-by-step guide on how to find houses to wholesale
Step 1: Determine Your Target Market
The first step in finding houses to wholesale is to determine your target market. You need to identify the types of properties that you want to wholesale, the neighborhoods or areas where you want to invest, and the price range that you’re willing to pay. You can research your target market by reading real estate blogs, attending local real estate investor meetings, and talking to other investors in your area.
Step 2: Search for Properties Online
The internet is a powerful tool for finding houses to wholesale. There are several online resources that you can use to search for properties, such as Zillow, Redfin, and Realtor.com. You can also use real estate investing websites like BiggerPockets and Connected Investors to find properties that are listed for sale by other investors.
To search for properties online, you need to enter your target market criteria, such as location, property type, price range, and other filters that are relevant to your investment strategy. Once you find a property that meets your criteria, you can contact the seller or the listing agent to schedule a showing.
Step 3: Network with Real Estate Professionals
Networking is a crucial aspect of finding houses to wholesale. You need to build relationships with real estate professionals who can help you find off-market properties, such as wholesalers, real estate agents, attorneys, and contractors. You can attend local real estate investor meetings, join real estate investing groups on social media, and reach out to professionals in your area through email or phone.
To network effectively, you need to have a clear understanding of your investment strategy and your target market. You also need to be professional, respectful, and transparent in your communication with other professionals.
Step 4: Drive for Dollars
Driving for dollars is a popular strategy for finding off-market properties that are not listed for sale. This strategy involves driving around your target market and looking for distressed or vacant properties. You can use apps like DealMachine to take pictures of these properties and find the owners’ contact information.
Once you have a list of potential properties, you can contact the owners and offer to buy their properties at a discounted price. This strategy requires time, effort, and patience, but it can be a highly effective way to find houses to wholesale.
Step 5: Use Direct Mail Marketing
Direct mail marketing is another strategy for finding off-market properties. This strategy involves sending letters or postcards to homeowners who may be interested in selling their properties. You can use websites like Listsource and REIPro to find targeted mailing lists based on your target market criteria.
When you send direct mail, you need to craft a compelling message that addresses the homeowners’ pain points and offers a solution to their problems. You also need to follow up with the homeowners multiple times to increase your chances of getting a response.
Frequently Asked Questions
How much money do I need to start wholesaling houses?
You can start wholesaling houses with as little as $500, but you’ll need to have access to funding sources, such as private lenders or hard money lenders, to finance your deals.
Do I need a real estate license to wholesale houses?
No, you don’t need a real estate license to wholesale houses, but you need to comply with local laws and regulations regarding real estate transactions.
How do I determine the ARV (After Repair Value) of a property?
To determine the ARV of a property, you need to research the recent sales of similar properties in the same area, take into account the property’s condition, and estimate the cost of repairs and renovations. You can use online resources like Zillow, Redfin, and Realtor.com to find recent sales data, or you can work with a local real estate agent or appraiser.
What are the risks of wholesaling houses?
Wholesaling houses involves some risks, such as not finding a buyer for your property, underestimating repair costs, or facing legal issues. To minimize these risks, you need to conduct thorough due diligence on your properties, have a clear understanding of your investment strategy and your target market, and work with experienced professionals who can guide you through the process.
Finding houses to wholesale requires a combination of research, networking, and marketing strategies. By following these steps and staying focused on your investment goals, you can identify profitable properties and build a successful real estate wholesaling business. Remember to always be professional, transparent, and respectful in your interactions with other investors and real estate professionals, and to conduct thorough due diligence on your properties to minimize risks and maximize profits.