How to Analysis an Orlando Wholesale Property | Deal Or No Deal?
What is a Real Estate wholesaler? Do you have to be licensed to sale a property? Do wholesalers always inflate the property price they are trying to move? The wholesaler provides specialized expertise including marketing, negotiating, and contract knowledge. Rehabbers don't always have advanced experience in these things and neither party needs to have a Real Estate license. Since a wholesaler has a contract they have an interest in the property and therefore he does not need to have a license. Often times, wholesalers have the networking and marketing skills that rehabbers and construction companies lack.
The concept of buying "wholesale" is not a new one. It's been around for thousands of years and wholesaling has been brought into play in housing. Almost every business around - clothing, food, books, cars, electronics, coffee, and thousands more. In real estate, the same principle applies. Finding a profitable project is definitely the most difficult part in a puzzle of steps to make a profit in rehabbing homes. A honest wholesales is worth their weight in gold if he or she finds high profit deals in volume. But why does it always seem that every listing states a slightly higher ARV and under-estimates the cost to properly repair?
Marketing is a time-consuming process. Rehabbing companies with professional and reliable people on staff need a reliable source of homes. Construction is much easier when a house is vacant. It takes time, perseverance, and skill to tie up good deals at a discount repeatedly. There is tremendous value in having someone else do all this work for you.
The Market has proved that there is a strong need for people who can track down profitable deals but why are all advertised listing both slightly over priced and the estimate for repairs under estimated? It is easy to wholesale a profitable deal in under five minutes with a couple of phone calls. The difficulty selling a house that needs tens of thousands in repairs is much tougher if the consensus is the Deal has slim profits.
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