Why Wholesalers Are Real Estate Experts
|Are all Real Estate Wholesalers created equal? Or, are there some that are better than others? This article is not to bash other "Real Estate Investors" but to shed light on the unique group of Real Estate investors often termed "Wholesalers". The aim is to place these individuals in a spotlight that is often overshadowed by bad dealing from the least experienced wholesalers and for me to add onto why they are experts in their craft. |
Definition Of A Great Real Estate Wholesaler
In order to be considered a "Great" real estate wholesaler you have to have all of the characteristics of a Real Estate professional combined into one. This includes a Rehabber (one who purchase a property, fixes it up and resells it), Landlord (one who specializes in purchasing properties to rent out) and a Real Estate Agent (one who often finds the properties for the Landlords and the Rehabbers).
These individuals all have special traits that set them apart from the others. The Rehabber is able to see what a property could look like after repaired and purchase it low enough to still be able to make a profit that is worth his while. The Landlord has the ability to look at a property and analyze it's ability to cash flow in order to give the investor a good return on their investment of the course of ownership.
Finally, the Real Estate agent is good at finding the properties for these type of investors often through the MLS (Multiple Listing Service) and then send them to the investors to see if they are interested. Overall, each individual here plays a specific role in the purchase of a property. They all have their specialized skill that works for them.
What Makes The Wholesale Investor Special?
Now where does the Wholesaler come into play? Well a Wholesaler is an individual that goes after properties, gets them for a discounted price and then turns around and resells it for a profit. The real estate wholesaler has a talent because in order to locate properties for this cheap they have to beat out Rehabbers, Landlords and Real Estate Agents that would like to list the properties for sale.
First they are able to market for property owners that are willing to sell their home often for below market value. This often takes extensive marketing and superb negotiating skills in order to get the price on the property low enough to be able to resell it. The real estate wholesaler is also able to evaluate the surrounding properties that have recently sold "repaired" and "as-is" in order to market the property to potential buyers and attract their interest over other properties that they could usually be found on the MLS working with a real estate agent. Lastly, they are able determine if the property would cash flow based of the expenses and the area rents in order to determine if it's a good property for a Landlord Investor.
Experienced Wholesalers often get overlooked by the bad dealings of a beginner inexperienced Wholesaler's wrongdoings. This could include advertising properties that they didn't have under contract or something along those lines. But finding a good Wholesaler to work with could be valuable unto itself. Their ability to find properties for deep discounts and offer them to the Rehabber or the Landlord investor could often saves them thousands of dollars on the front end of the purchase and could land them larger profits on the sell of the property, (hey they do say that you make your money when you buy the property not sell it- lol).
That's why more seasoned investors should find themselves an experienced wholesaler in their area to work with and inexperienced wholesalers should hone in on their skills with the help of an experienced wholesaler to set themselves apart and ultimately make money in the real estate investing business.
|Mike Nelson, is originally from Philadelphia, PA. Mike "The Professor" Nelson has built his empire from the ground up, investing in real estate and teaching hundreds of others to make a living doing the same.|
Since Mike's graduation from Virginia State University with a BS in Business Management, Mike Nelson worked full time in a Fortune 500 company before deciding to take a risk and go into business for himself. Armed with limited funds and his business partner, Darrin Smith, Mike slowly started experimenting in real estate wholesaling.
Fast-forward two years, a dozen mistakes, and hundreds of success stories later, Mike "The Professor" Nelson co-founded Smith & Nelson Properties, LLC, a company that manages real estate in the DC, Maryland, and Virginia tri-state area.
Mike Nelson has enjoyed such success from Smith & Nelson Properties; he now mentors other wholesalers and blogs about his experience on their Wholesaling Houses 101 site. "The Professor" also wrote and published a wholesaling guide in 2012. Mike Nelson currently lives and flips houses in Richmond, VA with his son.
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