Become A Wholesale Investor With These Simple Steps

Every investment involves risk, but wholesaling real estate investment properties is a no-brainer: It's one of the most risk-free ways to invest in real estate. You don't have to worry about credit, closing or anything else.

Many gurus try to make wholesaling properties complicated. In reality, it's quite simple. It's simply finding motivated sellers -- typically homeowners facing foreclosure -- negotiating price and putting the property under contract.

A wholesale investor then finds a rehabber or investor to sell the contract for cash.

How It's Done
Sounds simple, right? Here's a breakdown:
Seller accepts $120,000 for property
The property is worth $200K
Wholesale investor sells the property for $130K

You will make a profit of $10K just by brokering the deal.
Now, even though a wholesaler brokers a deal, the key is marketing. It's the only way you will make money as a wholesale investor. You don't make money by finding deals, you make money by selling the deal to another investor or rehabber.

The moment your phone stops ringing or you stop getting online leads from motivated sellers, your work as an investor is going to get a lot harder. The more motivated sellers you contact, the more deals you can make.

What You Need To Get Started
It doesn't take a lot to get started as a wholesale investor. Here's what you need to get started:

Toll free number
Bandit signs
Access to comparable sales
Assignment contract
Business cards and flyers
Title company that does double closings.

A Step-By-Step Strategy
You can get a 1-800 number for $10 or so by searching on Google. When you pick a provider, you'll want a number that will allow you to have a detailed, personalized greeting. Make sure you say the key selling points, such as you help people sell properties.

Now, put 25 bandit signs in parts of town where there are older homes. There is a reason for this strategy: Older homes have more equity, which equals more potential profit.

Make sure to include your toll free number on your bandit signs and place them in highly trafficked areas such as street corners and near busy intersections. Make sure you check whether bandit signs are legal in your community.

Some communities have laws banning them. One way to get around that is to put the signs up after 5 p.m. on Fridays until the signs are removed on Monday.

Next, work with a Realtor you trust to get comparable sales for your wholesale homes. Don't forget to network at local real estate investment groups where other investors, realtors and title companies will attend.

This is a step-by-step method to wholesale investing success. Follow these steps and you'll begin seeing success as a wholesale investor. You don't have to recreate the wheel. Just follow the steps above for success in wholesale real estate.