A Wholesale Business is a strategy that every investor should know. Wholesale offers almost anyone the opportunity to participate in property investing with minimal resources. While other real estate investing strategies typically require a minimum credit score, a down payment, verifiable income, and some property repairs, Wholesale does not. Wholesale also offers the opportunity for an investor to execute a deal without buying or selling a property. A Wholesale Business can be applied to any real estate scenario and property type, including single-family owner-occupied, multi-unit, or commercial. Like all strategies, Wholesale is most profitable and stainable as a business model when we focus on solving other people’s problems. Typically, the bigger the problem, the bigger the profit.
Being a profitable Wholesale investor involves three things:
- Find the problem (Distressed property/owner)
- Sign the paper (Get the deal under contract)
- Sell the paper (Market and exit the deal for a profitable fee)
Find the Problem
A distressed seller may find themselves in a position where they have run out of money, time, or both and have no other option but to sell. A distressed property requires an additional investment for interior and exterior property repairs updates and ensures compliance with current building codes. Some the reasons this may happen could include:
| Running out of money: | Running out of time: |
| · possible foreclosure· job loss
· illness/death · family obligations · failed property renovations |
· possible foreclosure· illness/death
· divorce · relocating for employment · family obligations · failed property renovations |
When a distressed seller and distressed property are combined, the seller has limited options and often cannot use conventional methods to sell their property. Although the seller could use a realtor to sell the property, typically, realtors will require the seller to repair and update the property to a retail state before listing the property for sale. This scenario provides the opportunity for a Wholesaler to solve the seller’s problem.