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.
There are different types of buyers the wholesaler can work with, a common buyer being a rental property investor.
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.
How The Wholesaler Finds Homes This is the most challenging part of the wholesaling strategy, which is why the wholesaler deserves their profit when they pull it off.
The price they pay for a home must leave enough profit in the deal for them with a discount below current market value for the rental investor.
Using classified ads, signs at street corners, Craigslist and networking, the wholesaler seeks out motivated sellers.
When they locate one, they must run the numbers to see if there is an opportunity to move the home to one of their rental investor buyers at a profit.
The wholesaler must not only know how the rental investor evaluates a property but must do so for them before even buying the property.
A ready list of rental property investor buyers seeking more homes.
The ability to evaluate homes and negotiate with sellers for workable deals.