The real estate wholesaler’s value to their buyers is in their ability to locate and negotiate control or purchase of homes at discounts, allowing the wholesaler to profit from immediate resale. The typical wholesale deal usually moves from purchase of the property to resale within a few days to a few weeks. There are different types of buyers the wholesaler can work with, a common buyer being a rental property investor.
What A Rental Investor Wants
Rental investors profit from renting out homes for rental amounts that exceed their expenses of ownership and management. That’s the positive cash flow component of their strategy. They also expect to purchase a home at a discount to current market value, the appreciation component. They generally prefer to buy homes that are ready to rent, or that require few minor repairs so that they can get a tenant in them quickly.
The experienced rental investor, especially those actively seeking new properties, will be very market-savvy and able to make a purchase decision quickly if the wholesaler comes to them with the right information and numbers. The wholesaler wants to maintain a buyer list of rental investors so that there will be a waiting buyer for the properties they turn up.
How The Wholesaler Finds Homes
This is the most challenging part of the…