vice versa. A wholesale deal is when a person sells or assigns a contract. You want to make sure you are selling or assigning a contract in order to wholesale and NOT getting paid to connect a buyer to a seller, which requires a real estate license. Finally, if a real estate agent is involved in either kind of transaction, they must disclose this. This is because, theoretically, there could be an unfair advantage.
FINDING BUYERS
I’ve already mentioned this, but I want to be clear: The key to successful wholesaling is having a solid list of potential buyers you can trust. Without them, you might find yourself stuck with properties you don’t want. Your buyers will most likely be other investors, including both flippers and rental investors. Just keep in mind that people who own rental properties often don’t want to do major repairs. This is why it’s crucial to know exactly what your buyers are looking for — the more you know, the more likely you’ll find the right buyer quickly, which means the process is more likely to go smoothly. Also, it can’t hurt to have a potential backup buyer, just in case something unexpected happens.
So, how do you build your list? There are several options:
• Search the Internet for properties. Then, you can reach out to anyone who has rentals for rental listings or purchase listings with a “for rent or lease” option. • Network. Post on social media, talk to or email family and friends, and reach out to related professionals you know, like lawyers, mortgage brokers, and financial planners. You can also go to more traditional networking events. 40
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