You have located a property for wholesale and have finalized everything with the owner, so what next? It’s time to look for a buyer. You’re not looking for a first-time buyer; you’re looking for a contractor or real estate investor to buy the property and possibly do some necessary renovations.
Finding a real estate buyer has to be a quick process. Remember, as a wholesaler, you have entered a contract with the property owner, and you must do your business before the contract expires. As starter, chances are that you won’t have a list of potential buyers as you will need time establish a reputation in the market. However, there are a couple of ways to find buyers, without necessarily paying extra cash. They include:
- Emailing investors that you already met in meetup events
- Distributing flyers in your neighborhood
- Listing the property on free sites, such as Zillow and Craigslist
Once you start receiving calls from potential buyers, it is important to save their contacts, even if they won’t buy the property at that time. This will help you a great deal when sending out your subsequent listings.
In an era where smartphones are so trendy, the love for social media has never been stronger. In fact, most people hardly spend a day without visiting social media, and this trend is likely to continue at least for the foreseeable future. With popular social media platforms like Twitter and Facebook getting more and more members by day, it makes a lot of sense to take advantage of social media marketing.
While it is possible to build your own brand as a real estate agent and look for clients on any social media site, Facebook and Twitter are definitely the most popular and reliable platforms where you can market your business. Both of them allow you to either develop a “sponsored” post or create an ad for your listing, without having to spend a huge chunk of money. The sites also allow you to choose who sees your adverts; hence, promote targeted audience. This is especially important for real estate agents who want to target clients from specific geographical locations. Facebook goes even a notch higher to allow you target audiences who may “move” in the future. This means it (Facebook) allows you to narrow down your search result even further.
Despite technological advancements that have given rise to the digital marketing platforms we see today, the importance of traditional marketing cannot be written off when it comes to real estate marketing. Traditional marketing tools can be the cheapest, yet a great way to reach out to potential buyers.
One way real estate agents can get started with traditional marketing campaigns is the use of open house signage. Imagine how difficult it can be getting people to follow your online property listings or subscribe to your email list. With open house signage, it is a lot easier to draw the attention of passers-by to your property. Remember, seeing is natural, as they say, and it could be difficult for anyone to avoid reading your sign once they set their eyes on it. Although some of them may not buy your property immediately, they may be potential future buyers or may pass the word to potential buyers.
Open house signage is of different types, including Feather Flags and A-Frame Signs. Each type has its own advantages and disadvantages that you will want to put into consideration when making your choice. To boost the chances of lead generation, you will want to install your sign in a high traffic area.
Being a landlord may be time-consuming and stressful, especially when trying to manage an embarrassment of property on your own. You will not only be dealing with tenants and legal matters, but also managing your investment property and well-being of your houses. To avoid all these commitments, it makes sense for you to entrust someone else with the responsibility of taking care of your property. Let’s take a peek at how landlords benefit from property managers.
Tenant selection is no easy. It involves conducting background checks to know the previous behavior of the tenant and understanding their level of responsibility. This process calls for due diligence and needs time as rushing things could lead into getting a wrong tenant, who may not pay rent on time. Property managers have what it takes to filter tenants and get it right. They will conduct a rigorous background check before they can rent out your property.
Conflicts between landlords and tenants are not only a common phenomenon but also very stressful. If not resolved in time, they could adversely affect your property profitability. Property managers have experience and expertise dealing with such conflicts while, at the same time, protecting your financial interests.
Living without the worry of property maintenance and repairs is the dream of every landlord. Unfortunately, you can’t escape this responsibility as a landlord. Like any other property, rental property undergoes wear and tear, over time. The wear and tear will even be faster if you have reckless tenants. To save yourself the trouble of property maintenance, you will need to appoint a property manager.
Getting a good tenant is more difficult than you could imagine. So, when you get one, it is important that you don’t lose them unless it is absolutely necessary. If your tenant gets disgruntled with the quality of service, there are high chances that they will move out of your property. Vacancy rate will definitely rise when you’re taking longer than normal to fix a drainage problem, air conditioner, electricity problem, or any other property related problem that affects the tenant. A property manager will ensure that these issues are promptly dealt with, leaving your tenants satisfied.
Frees You Up
This is perhaps the most obvious reason why you will want to appoint a property manager. From communicating with tenants to marketing vacant houses to coordinating repairs and maintenance – not to mention a dozen other tasks – it can be overwhelming to handle all of them and pay attention to other personal commitments. With a property manager, however, you will have all the time in the world to attend to other tasks as they handle all issues related to your property.
Whether you are an interior designer or you are a first time seller, staging your home can make or break the sale, and can enhance or increase the value and appeal to potential buyers. Here are some hacks and tips for staging yours, or any home, which will help save money, time and that will help make the process as efficient as possible:
- Stage the most focal areas; if you are short on time, cash, or both, make sure to focus on the areas which are the most visible, focal and ultimately crucial to buyers. The rooms known to be the most appealing and focused on for buyers include the living room, master bedroom and the kitchen.
- Make the space relatable but not overly personal; it is essential that buyers can see, visualise and picture themselves living in the home. From cooking dinners to watching movies to a cosy bedroom, a buyer has to be able to imagine their lives in the space. This means removing traces of your own life, including family photos, etc. You can easily use things such as ikea couch covers to help make the space more open, de-personal, yet still inviting.
- De-clutter; get rid of clutter which doesn’t add value or appeal to a room. This doesn’t necessarily mean throwing away your belongings, but perhaps packing up nick nacks, toys, extra décor, and games, etc. Space looks bigger and more open with less stuff in it. If you have a garage, try putting extra things in there, or use it as an opportunity to purge your belongings.
- Tidiness does not equal cleanliness; make sure to grab your bleach and all your favourite cleaning products, and make the house sparkle and shine. Tidying is no replacement for cleaning; there is no substitute for walking into a genuinely clean home. This means the tasks you may have been putting off for a while, such as cleaning the fridge, vents, or curtains, etc. Investing in a professional can take the guesswork and effort out of it.
- Neutral is better; if you are investing in furniture, or décor, etc. for the sole purpose of staging, go with neutral colours such as black, beige, or grey, etc. Pick colour schemes and shades which go well together. These pieces can also be easier to use in different or multiple spaces, generating a better return on investment, or sold if you no longer need the furniture after staging your home.
- Practice a walkthrough; have a friend or family member come and walk through and give you a fresh set of eyes. This can provide you with valuable insight and feedback to help with last-minute touches. This can also help when you are so far invested that you may not be able to remove yourself and see the space objectively.
Renovating your house is like breathing a new life into it. It serves to rekindle that excitement spark, which usually goes away as a result boredom that comes with a prolonged stay in a familiar environment. Yes, a long stay in one environment is enough to make even a paradise lose its charm. Besides the charm it brings, renovation upgrades increase the value of your property, making it easy to sell it at a premium, if you want to. As a property owner or manager, here are some renovation ideas you could invest in to turn your home into a perfect haven.
Spruce Up the Garden
Do you see an outdoor space with a garden around your house? That is a nice place to read a novel, a newspaper, or even relax and unwind after a hectic day. Thus, you will need to spruce up the garden to make your outdoor space more appealing. This is especially important in spring as it eliminates any signs of winter damage. You could start by cleaning up the entire garden to get rid of all dried leaves, flowers, twigs, branches, and any other winter leftovers. You can then prepare the soil and plant your crop, which could be your favorable vegetables.
Renovate the Patio
Your patio will definitely lose its appeal if it is not renovated. Being an outdoor space, the patio is so vulnerable as it takes the hit from destructive elements, such as sun rays, rainfall, and wind. Flowers and plants are what forms your patio’s life; hence, they will need special attention. Sweet flower scents create serenity in the area, making the space perfect for relieving stress and unwinding. Adding a water feature such as a bird bath will help entice the birds into the patio, adding beauty and life to it. The addition of a canopy, a rug, and some matching colorful cushions makes the patio even more appealing. You could go a notch higher and decorate your patio with an embarrassment of tiki torches, drum tables, sculptures, and Chinese jars. Ensure that the chairs and tables are well repaired or replaced as needed.
Renovate the Garage
Perhaps, your garage has sustained some serious beating from the stored junk and needs renovation. Putting it in order could be a tiresome task, but it will be worth all the hassle. Of course, the clutter-filled space can be used for other purposes. You will first need to remove all the junk from the space. Check the garage floor for any cracks and repair them as needed. Repaint the walls to give them a new look and install proper lighting for good ambiance. Check every part of the garage to ensure it is up to the mark.
Real estate is big business; it seems as though just anyone can succeed in this market. However, those who venture into it will tell you that it is not an easy business. It is an industry which requires a lot of keenness and attention to detail. One has to have their ear to the ground for the latest trends that property buyers are looking for.
Here are some of the critical issues you should have in mind when looking to develop a property.
Access to Major Road Networks
Roads are the most popular means of transport used to get around in most parts of the world. Road convenience, thus, becomes a significant factor which people looking for real estate property consider. A real estate location should be situated either close to main roads or with good feeder roads. While this is not a problem in most parts of the UK, distance should be given thought too. People want to avoid tiring journeys, especially when they have to commute every day.
Security and Safety
It goes without saying that people will always be concerned about their safety. Safety is a general term which comprises of several aspects. Threats of terrorism may be a considerable concern, but people also care about smaller crimes such as break-ins and robberies.
Places with a lousy history of neighbourhood relationships will often be avoided by buyers. Child molestation claims are also a sure factor in chasing people away. Developers should dig up such statistics before deciding to invest in a particular area.
The internet is no longer a luxury. People place it high on the list of facilities they want to have in a property they are buying. In the current age, people often work from home and need an internet connection to do so.
The internet is also a great security feature and can be used in medical emergencies too. With a good signal, people can contact health experts on livi.co.uk from their phones if they need immediate help. The GP comes to life through an internet-connected app and can help save a dire situation.
Developers should thus invest in areas with robust internet services, and where buyers can have several providers to choose from.
Access to Amenities
Within a residential area, people want to be able to access basic amenities such as water, electricity and shopping centres with ease. They also want their children to be in a position to find good schools. Over and above that, there are recreational facilities such as swimming pools and parks, which can be high selling points too. Real estate developers need to look beyond the necessary amenities and invest where there are recreational facilities also.
Not everyone can start and run a successful real estate wholesaling business. The business demands a lot in terms of patience, time, and commitment. It is important to enter the business knowing that success won’t come easy; you will need to pay the price. Since you will be dealing with clients, you will also need to have excellent marketing and communication skills.
Perhaps the first key to success in property wholesaling is locating the right property. Distressed property owners who want to sell their property as quickly as possible are the best prospects. Those kinds of properties are definitely attractive to investors as they fetch huge profits, especially if they are located in desirable areas and have desirable amenities. Before making an offer for any property, you will want to know the level of repair needed so that you can factor it in the offer.
Knowing how to make an offer is crucial in wholesaling. If you’re making an offer that is too low, potential sellers may get scared. On the other hand, making a too high offer will reduce the profitability of your business.
When it comes to real estate wholesaling, distressed properties are no doubt the best as it is possible to sale them under the market value. Distressed properties are those properties whose owners want to sell quickly or those under foreclosure. As a real estate wholesaler, getting a distressed property enables you to sell it at a far much higher value than what you bought it for. Another reason why wholesaling real estate is so appealing is the fact that it has low capital requirements. Typically, real estate wholesalers, especially starters, use free or inexpensive ways of locating distressed properties. Seasoned wholesalers, on the other hand, tend to use sources such as online real estate websites, real estate investment groups, real estate wholesale groups, and even property finders, in locating distressed properties for wholesale.
The internet is a great source of distressed properties, but you will need to know the best sites to check. Of course, you don’t want to waste your time browsing a site only to meet property owners who are not motivated to sell. Some of the most reliable sites where motivated sellers can be found include HomesByOwner.com, FSBO, and Craigslist. These sites are easy to use as each offers a search bar where you can type a keyword that you’re searching for. Keywords are a great way of conducting searches as they make it possible to narrow down the search. Some commonly used keywords in searching for distressed properties include distressed property, fixer upper, motivated seller, estate sale, must sell, and sold as is.
Real Estate Investment Groups and Wholesale Groups
Real estate investment groups and real estate wholesale groups give real estate wholesalers the opportunity to network. These groups bring together real estate investors, real estate professionals, appraisers, contractors, title companies, real estate agents, and other people who have an interest in real estate. Here, meeting lead sources, mentors, and even partners won’t come as a surprise.
Hiring a property finder is just another popular yet affordable way of locating a distressed property for wholesale. A property finder is a person or organization that specializes in finding properties that are up for sale; so, they are experts in the game. Whether it means cold calling, moving door to door, or scouring neighborhoods, a property finder will use every means possible to locate distressed properties.
One good thing with property finders is that you don’t need to pay them upfront. Instead, they will do the work first and demand payment when you will be purchasing the property. It is little wonder this people are sometimes called bird dogs. They save wholesalers a great deal of time, which can be utilized elsewhere, including connecting with other real estate investors and finding property buyers.
While locating a suitable real estate property for wholesale is a milestone, it is quite another thing to convince the owner to sign a contract with you. Having the property owner sign the contract is important because it gives you confidence to go ahead and sell the property at a profit.
Approaching the Owner
You will need to book an appointment with the property owner so that you can have good time to discuss about the business, and you will want to go about this in a delicate way. Remember, as a wholesaler, you may not be a traditional real estate professional; hence, gaining the trust of the property owner will play an integral role in moving forward. You will need to keep time for the meeting and be courteous and professional.
Negotiating the Deal
When negotiating with the property owner, it is important to discuss the benefits the owner will get if they sold the property to you. You could focus on things like ensuring that the property owner does not default on the mortgage they are servicing. You may also want to focus on how you will handle processes such as appraisal, inspection, and the contract drafting. Show the property owner that you’re going to take care of these processes so that they won’t have to go through the trouble. Most owners prefer not to incur any upfront costs. If there are any repairs that need to be done on the property, it is important to let the owner know that they will be taken care of since the cost of any repairs will justify your offer to the property owner.
Signing the Contract
Getting the home owner to sign your contract will give you the all-clear to go ahead and wholesale the property based on the contract terms. You could involve a real estate agent or a local attorney in drafting the contract (though most wholesalers do it on their own).
In most cases, property wholesalers tell owners that the buyer is their partner. This is meant to prevent the owner from knowing that the wholesaler is reselling the property at a profit. Although there is no crime in so doing, it is not recommended as it looks deceitful.