So you want to wholesale real estate...
Today’s market is a puzzle yet to be solved.
It is always going through its ups and downs and is getting harder to predict by the day. The worry of profit vs recession is in every wholesaler's mind.
While a solution is yet to be found, that doesn’t mean there isnt a way to maneuver your way out of this maze that is rising rates. Keep these 10 strategies in mind when trying to overcome the market and its obstacles:
What to do in a rising market
1. Focus on affordable properties
When it comes to rising interest rates, affordable properties are your golden egg. This is because the higher the interest rate, the higher the mortgage payments. As a result, expensive properties will start to lose their appeal. Focusing on affordable properties means they will be the most attractive to potential buyers despite the high-interest rates.
2. Look for properties in high demand
No matter how high the interest rates rise, properties in high demand will ALWAYS hold their value better in any market. This is because properties located in areas with good schools, high employment, and a strong rental market will be the most attractive.
3. Network with other wholesalers
Networking, especially in a rising market is extremely viable, other wholesalers can provide valuable insight into the local market, pricing trends, and any other relevant information. There could also be the off chance that they are willing to work with you on a joint venture or assign you a contract.
4. Offer seller financing
Seller financing is where the buyer is allowed to pay the seller in installments rather than using a traditional mortgage process. This makes potential buyers look at your property as more valuable, especially in a rising market, because there may be some buyers who need help to secure a loan from a traditional lender.
5. Market your properties effectively
Effective marketing is the key to successful real estate wholesaling. When it comes to dealing with markets like we are right now, the lifesavers are:
Leveraging all available channels
Including online platforms
Social media
And traditional advertising methods
Just be mindful that your marketing should always be tailored to the specific property and its target audience.
6. Consider alternative financing options
In a market with rising interest rates, your profit is always in mind. So it may be fruitful to consider other financing options, this may be through private lenders, or hard money loans to fund your wholesale deals, who may be more flexible in their lending criteria and can provide a quicker turnaround.
7. Offer incentives to potential buyers
Offer your potential buyers reduced purchase prices or free upgrades. Providing incentives to interested parties helps offset the higher interest rate and adds value to the buyer.
8. Focus on distressed properties
Foreclosures, short sales, abandoned properties, after assessing the potential costs and risks, can all be a valuable source of wholesale deals in rising markets. These properties could be available at a discount which allows you to offer a lower purchase price.
9. Build relationships with local real estate agents
Building relationships with local real estate agents can help you find potential wholesale deals and increase your exposure to potential buyers. Such agents would be willing to work with you to find off-market properties or refer clients to you.
10. Stay up to date with market trends
Staying up to date with market trends allows you to adjust your strategies accordingly. When it comes to figuring out a rising market, keep a close eye on interest rates, housing supply and demand, and other key indicators to ensure you are making the most informed and beneficial decision when wholesaling.
Gain the advantage
For many, time is of the essence, but the need to beat out the competition and gain the upper hand is priority.
Which is why becoming a franchisee with companies like KeyGlee, puts your time at the forefront. We specialize in selling deals, we accumulate quality buyers at an efficient rate.
Many wholesalers focus on acquiring the properties and KeyGlee can both acquire and sell, we build the buyers list and sell the properties. This puts you in a unique position with more time to be able to wholesale at a large volume.
Wholesaling in a rising market requires a strategic approach to maximize profits and minimize risks. With the right strategies and a positive mindset, you can successfully wholesale despite challenges in a rising interest market.
Come to our Investor meet-up on March 15th from 6-8 pm and plan your strategies, network with other wholesalers, investors, flippers, real estate agents, and other like-minded individuals, and gain the competitive edge for your wholesaling needs.
If you can’t make it then discover what KeyGlee can do and can do for you by signing up for a Virtual Discovery Day and unlock the key to boosting your business.