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SpinDistribute.com Article Directory

The following article was published in our article directory on September 28, 2010.
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Tips in Starting Wholesale Real Estate

Article Category: Business

Author Name: Josh Brown

The business of real estate wholesaling can be a very financially rewarding experience for anyone who can succeed in it. However wholesale real estate is not for everyone. You need specific skills in order to make it through this field. Thankfully, these skills can be learned and developed. Following are the skills you need in order to succeed in this business plus a couple more tips to help you along in getting started in wholesale real estate.

1. Be a people person first before anything else – you need to be very good in dealing with people in this business. You need to be able to read people and be very good at dealing with different people having different personalities. You will be dealing with buyers, sellers, lawyers, agents, tax collectors, appraisers, even contractors and home builders. If you don't even have the ability to iron out differences with your best friend, you can't expect to succeed in this field. Being good with compromises and closing deals is an essential requirement for this job. Make sure you have it or if you don't, make sure to develop it.

2. A good eye for bargain properties – you're basically in this job to hunt for bargain properties. If you don't have a good eye for finding bargain properties, then the best you could do is hire someone else to do the hunting for you and offer them a commission for every lead that they generate. You need to get the word out that you're into the business so motivated sellers would approach you. Setting up an automatic answering service that outlines what you do and instructs the callers to leave their contact information would help you a lot in processing those leads. You can also put up ads or invest in marketing so you can reach more sellers in the market.

3. Find buyers first before properties – you want a risk-free investment in every deal. In order to do so, you need to find motivated buyers (buyers who are sure they will be buying) who will buy whatever property you find for them. Just make sure to make it clear with your buyers what it is they want in a property. Do they want properties that don't need extensive repairing or developing to do, or would they rather buy properties that need extensive reparing but promises to give back a larger profit? Settling this first with buyers assures you that they won't back out of a deal when you do find the properties they are looking for.

4. Know the law – dealing in wholesale real estate requires you to know the ins and outs of real estate laws in your area. Real estate laws would be different in each state and in each country. If you are dealing in wholesale real estate in more than one state or country, then you need to know the laws of each state or country where you are operating. You can get the assistance or services of a lawyer or you can study up on the laws yourself.

Keywords: Real Estate, Wholesale Real Estate

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