Wealth-Coaching

In terms of Real Estate Investment strategies, The website Mortgage Business Daily has a short, but very informative piece on Real Estate Wholesalers.

“Wholesale real estate is a vibrant industry and controls a large percentage of all, real estate transactions,” Mortgage Business Daily notes. They add that the stimulus for generating wholesale real estate opportunities is finding motivated sellers, fixer-uppers, pre-defaults, and REOs.

“Despite what mass-media advertisers say, researching distressed properties takes work,” the online publication adds. ”Oftentimes, knowledge about regional and local market areas coupled with the desire to perform footwork in specific neighborhoods can mean modest success for most.”

In some ways, the primary beneficiary of a Real Estate Wholesalers’ skill can be the buyer and the seller.

“The real estate wholesaler may be doing the motivated or distressed seller a favor by purchasing his or her property,” Mortgage Business Daily adds. Several personal scenarios may cue the seller to aggressively sell his house. The seller may be motivated because of a job transfer. Or, the seller may have missed a couple of house payments and needs to sell the house fast before the lender or bank sends him a notice of default. The seller may not be interested in making an optimal profit.”

In some cases, personal circumstances on the part of the seller will prompt the seller to either to look for quick profit, rather than engage in a long, drawn-out process.

In these cases, and as the publication notes, ”a seasoned real estate wholesaler can invest a modest amount of improvement in the house in exchange for a nice, reasonable profit.”

In fact, a Yahoo! Answers post by a Real Estate Wholesaler in response to a general information request produced this response:

“I am a wholesaler,” the respondent wrote. ”You always need to do your own due diligence just as you would if you were finding your own properties. Always close at a title company to protect yourself.

“I don’t see any downside to it unless you are worried about how much the wholesaler is making,” the respondent added. “Some people would rather walk away from a potential 50k in equity because they are worried about what the wholesaler will make.

“The upside is you have a steady stream of deals to choose from and you don’t have to spend the time/advertising dollars to get them.”

(Mortgage Business Daily/Yahoo! Answers)