Tricks of The Trade: Wholesaling Investment Property To Make A Quick Profit

By
Real Estate Agent with National Real Estate Network, LLC


 by Ralph Marcus Maupin, Jr. (Mark)

A few years ago my Real Estate investing operation out grew my ability to effectively manage renovating and marketing all of the properties I was generating far more deals than I could handle without significantly re-structuring the business. At one point, there were over 80 properties purchased and waiting for repairs. Holding costs were out of control, in other words I had bitten of more than I could chew. But rather than hiring large numbers of new staff and workmen, which would have increased my overhead, I turned to utilizing what I had in a different way.

One thing I was obviously good at was finding great deals, so good in fact I had acquired more than I could work with. So instead of looking for more properties to add to my problems, I began to find “wholesale” properties to sell to other investors. “Wholesaling" refers to reselling properties that I have either purchased or am controlling as-is, at a markup that still allows investors to purchase the property at 50% to 70% of the market value. This has allowed me to overcome the problems of managing renovations on a large scale without substantially changing what I do best. I’ve actually become a resource and a partner, in some ways, for many real estate investors.

This is a valuable lesson to learn from as it can benefit you in your search for property and investments. It is likely if you are involved in real estate investing to any level, you will run across properties, which are good deals, but for various reasons may not be what you are looking for. Whether it is the location, type of property, etc., that makes it undesirable for you; there is someone else out there who is looking for it.

Finding that person may be a lot easier than you think, you may already know them through an investor group you belong to. Placing an ad in the paper or working with Realtors are also viable ways to sell these properties. If it's a good deal, it will sell. One thing is certain in the business of real estate investments, the "hardest" part is finding a deal. The rest of it falls into place fairly easily once you have.

Its easy for a wholesaler to do a Google search on any of following: Real Estate Investing Clubs, Real Estate Investment Association, REIAs, REIA, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, Real Estate Mentoring Programs, Foreclosure Boot Camp, Real Estate Training Classes, Real Estate Seminars, Real Estate Schools, Real Estate Courses, Real Estate Investing Network, Real Estate Conventions, Real Estate Boot Camps, and Real Estate Forums.

One tip on this and any investment you do is, don't let greed drive your business. It's the biggest pitfall to real estate investors. Holding out for the most, highest dollar usually results in disaster. Make money and move on.

An old saying in real estate: "One deal can‘t make you, but it can break you". Take a win - win approach to your business, it does work the best and ultimately is the only way it works.

Mark Maupin has purchased and sold in excess of 3,500 single-family homes and many multi family properties. Ralph Marcus Maupin, Jr. Nick Name ‘Mark’ is one of founders of National Real Estate Network LLC. He teaches real estate investing and Internet Marketing for local Michigan College. You will find many free resources such as: Free Real Estate Forms, Terms, A great site for more information and more articles  is http://TheQuickHomeFinder.com

 

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Tags:
wholesaleing
investment property
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Comments 1 New Comment

Rainmaker
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Bill Exeter
1031 Tax-Deferred Exchange Expert
Exeter 1031 Exchange Services, LLC

Hi Mark,

Great wisdom to live by.  I wish more people would follow it.  There are too many that live for the biggest and best, period.

February 10, 2008 10:25 AM
Rainmaker
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Ralph Mark Maupin

Michigan Real Estate Investors Host
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