How do you determine if a property is wholesale investment property material or not? Determining whether real estate is a good investment or not in many ways has more to do with the seller than the property itself. It really does not matter if a property is located in a prime location with a high value or located in a less than desirable location.
A Wholesale Real Estate Investment is a property whose owner is motivated to sell and one in which you can acquire at a very low price and/or with owner financing. You can wholesale any house if acquired at the right price and/or the right owner financing terms. What makes a motivated seller? A motivated seller is someone who wants to sell his or her property in the quickest possible time. Maybe the seller is going through a divorce and the couple does not want to continue paying the mortgage. They want to sell their Real Estate. Fast. You have got a motivated seller right there.
Those who inherit properties can also be considered motivated sellers. They already have a home. Then suddenly a property – a property they do not want or need – falls in their laps. They do not want to manage the investment property. They do not want to pay taxes on it. They just want to get rid of it as fast as they can and make some money too. You have another motivated seller that may agree to owner financing.
You can also find people who are moving for one reason or another and they have to dispose of their real estate property as soon as they can. These folks are willing to sell their properties for less in exchange of the convenience of getting their money and moving on with their lives with the least hassle. This is another good candidate to acquire an investment property with owner financing. You will also encounter property owners whose properties are not in a very good condition; these are sometimes referred to as rehab houses, fixer uppers or ugly houses. They cannot afford to fix the house and they want to sell. They need to sell. You now have another motivated seller.
Sometimes you will also come across tired landlords that have fixed one too many toilets in the middle of the night or are tired of looking for tenants. They may need cash or they may be willing to entertain owner financing for their real estate investment property. You will also encounter people who are filing bankruptcy and liquidating assets as soon as they can to whoever will help them. A motivated seller. This type also includes those with pressing financial problems of any sort. Selling their real estate properties will give them an easy way out.
The highest number of motivated sellers you would likely encounter in these trying times would be those who are faced with a foreclosure. With the sub prime crisis, the number of those entering foreclosure is climbing and as a wholesale property investor, you would definitely find many who are motivated to sell their real estate properties at discounted prices. Some people question whether wholesaling is ethical, asking distressed homeowners for deep discounts on their houses. But keep in mind that you, as wholesaler, are helping those who are in need. You are providing them a means to quickly take care of their issue. Investing in wholesale properties is a good way to help those who are in need and make a profit at the same time.