You have heard that there is money to be made as the “middleman” in real estate, and most likely you are wondering how to buy and sell wholesale Florida real estate.
I mean, Florida has been battered and bruised during the collapse of the housing market. It is not a reach to think that the recovery will bring great opportunities to investors who are smart enough to identify opportunities but also bold enough to invest in what they are seeing everyday in the housing markets where they work and live.
When most people are trying to figure out how to invest in wholesale Florida real estate, they run into some early stumbling blocks. Quite frankly, were it not for a few of these identifiable issues, then “everybody” would know how to buy and sell wholesale Florida real estate and the opportunities would not be so vast.
The reality is that many intelligent people are sitting back, wondering how to get involved in the wholesaling opportunities in the Florida markets where they live. They are looking for the action plan, the type of guidance that can help them get out the starting gates. If this describes you, then take a look at this simple cheat sheet that will provide you exactly what you need to get started.
Why Learn How to Buy and Sell Wholesale Florida Real Estate?
You should learn how to buy and sell wholesale Florida real estate for one simple reason. Now is the time. Yep, it’s that easy.
For further guidance, I’ve created a video explaining real estate market cycles, and how wise investors are taking advantage of the ease of “buying low” and “selling high” which occurs during this rare, but wonderful market cycle.
Understanding Wholesale Real Estate
Before we move into the specifics of investing in wholesale Florida real estate, I want to highlight a few points that my 20+ years of real estate brokerage business has taught me.
First of all, real estate wholesaling is simply the process of finding solid real estate opportunities and turning them into profit by putting a buyer and seller together.
Think of knowing how to buy and sell wholesale Florida real estate as a way to grow your wealth with very little starting capital, and “what you bring to the table” is simply a practical eye for value, a technique for finding opportunities, and an organized process for maintaining relationships with ready real estate investors.
1. A Practical Eye for Value - There is no rocket science involved. It’s all about being observant in the community in which you live. Watch for areas that are starting to thrive, and follow the trends. An old real estate investor once advised: “Figure out where people are moving, get there first, and buy!”
Pick a location, or part of town where you think people will want to live for many years, and then spend some time getting to know your target area of operations.
2. A Technique for Finding Opportunities - There are so many books on “how to buy income producing properties,” but I think it is inherently obvious if you are spending time in the territory you want to work. Call people selling, people buying, and have your favorite real estate agent trained on your buying criteria. More importantly (as you will discover in the next point), your assembled list of ready buyers will have their own criteria.
Think of yourself as a “shopper” for these investors. You have to find the type of property they like, in the area they like, and be able to effectuate a contract that meets their requirements, as well as provides a margin of profit for you.
3. An Organized List of Ready Buyers - Again, there are many free resources online for “how to find real estate investors,” but I have always found that by studying a specific area, I will continue to come across several names of people who own properties in that area.
I like to keep a list of the prominent investors in every key area of my chosen territory. I reach out to them, ask them what they like (though I already really know having searched through the tax records to see what they own), and then find out if they have an appetite should I run into more opportunities. Often times, they will tell me exactly what I need to find to get into a deal.
Additionally, you can find places on the Internet where investors congregate, like niche websites and real estate wholesaling forums.
Growing this list is not a one-time thing. You add and remove people from the list all the time. The key is to understand that maintaining the list is nearly half of your “job” when buying and selling wholesale real estate.
Your Cheat Sheet: How to Buy and Sell Wholesale Real Estate
So now that you have the “big picture” figured out, use this Ten Point Cheat Sheet to get you started as a real estate wholesaler in your local housing market. Remember, investors are going to have varied needs, but positive cash flows are a great place to focus.
1. Identify an area or community with a stable economy and good prospects for the future.
2. Identify the supply and demand for rental properties.
3. Study a real estate website or two and devour all the free information. Even if it is not about your specific market, the lessons and observations will be very applicable to your selected market. See what the author of the site is doing, and try to do the same for your market.
4. Begin building your list of investors. This will be the people that you “flip” your contract to after you bind a homeowner to a price and terms to sell.
5. Find a good local real estate agent who is willing to work for you. The agent makes a fee every time you buy, so you won’t need to pay her or him out of pocket. In fact, the seller will pay your agent in most cases.
6. Learn about your local property appraiser/tax assessor and how to find out the information you need on homes in your area. On your first few deals, lean heavily on your real estate agent and ask a lot of questions. As you get more experience, you will find that you would rather do this yourself.
7. Don’t be afraid to write offers. This is important. Write offers, write offers, write offers. Focus on ROI, leave your ego at home. Write offers on homes that have said no to you in the past – their situation might have changed. I would put every offer on a 30 day repeating schedule until either the home sells, or the seller has decided not to sell.
8. Be a student of the entire process. Visit every website you can find that talks about real estate (owning, flipping, managing, wholesaling, buying, selling, leasing, etc.).
9. See #7.
10. Don’t fall in love with a home. It’s all about ROI. Most of your offers will not be accepted, and not all contracts (accepted offers) will make it to closing. That’s OK.
About The Author
Joe Manausa, MBA is a 20+ year veteran of real estate brokerage in the State of Florida and has been investing in real estate since 1992. He is a daily blogger with content that focuses on real estate analytics and investing in the residential market. Joe is a former US Army Ranger and a graduate of West Point, so he provides analysis with a goal of gaining a tactical advantage in real estate investment.