If you have not heard about the term Real Estate Wholesaling or do not have much idea about it, www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ can guide you. Real estate wholesaling is all about identifying undervalued properties and fetching right buyers for the same; each deal is rewarded with a considerable amount of commissions. As per Wholesaling Inc, the most essential part of it being able to identify sellers who are looking to quickly dispose of the property for whatever reason and also matching them with buyers who are looking to buy it for investment, resale or rent purposes. Here are the advantages (plusses) and disadvantages (minuses)of wholesaling which will help you in deciding if this is the right career for you.
Some of the main advantages of real estate wholesaling are:
· You get to make a good amount of money legally and that too in quicktime. You are not dependant on anyone else or any firm for making your money; your efforts are directly rewarded with profits.
· Being an outsider, you may not know much about real estate, but when you start your career in real estate wholesaling, you are sure to learn a lot about the industry and that too in a breakneck pace. More the work you do, more information you can collect!
· Real estate wholesaling is one way in which you can make money without any financial investments. There is no credit facility involved due to which you have to run pillar to post to collect money. Nor do you need to invest any money in starting this career. All the investment that you need to put in is only your time, knowledge and effort.
· You get to work in your own time. There are no strict work hours for you, though you will have to be available at the time that buyers would like the view the property.
· There is no location restriction for you. As a real estate wholesaler, you can go beyond demographics and promote property in any other location as well, provided you are willing to travel there frequently to show it to prospective buyers.
Any opportunity that has a lot of advantages is sure to have some disadvantages as well. It’s listed here for you:
· There is no guarantee of income like that when you work for corporate offices where you are entitled to a monthly salary. You get commissions whenever you close a deal; there could be some months with many deals and some with no deals at all.
· Sometimes it may become difficult to find a buyer for a particular property then it could become challenging.
· You need to be up-to-date with the list of buyers and act quickly before they see and decide on buying some other property. You should build customer loyalty, which will help you in future transactions.
Once you are aware of both the positives and negatives of the trade, you can try to focus on the good ones and try to avoid the bad ones. Good luck with real estate wholesaling!