Introduction: wholesale real estate investing
There are none. In my experience, the best approach is to get straight in and begin taking notes. Wholesale real estate investing is not a free market transaction. You must cope with the intricacies of people’s views and personalities. Then there’s the never-ending churn of the judicial system. Municipalities will tax whatever they can get their hands on. Despite the fact that you took the effort to suggest “revitalizing a dying neighborhood,” there are dozens of distressed properties in my community that our county could just let go for free, but instead, they auction them off for thousands of dollars. So you’re basically purchasing rubbish with a price tag attached to it.
Consider for a moment that there is a man standing beside a garbage can selling black trash bags. His inner motivation is to generate money and rid himself of his garbage, and he is uninterested in your efforts to keep your company, its workers, and yourself afloat. That is the way wholesale real estate investing works.
You’ll be competing against people who have lobster claws for hands, so be cautious about who you shake hands with.
Now that the measures have been taken, the investment may begin. Begin with free resources… craigslist for nearby cities and start solely purchasing land. This will reduce the stress of interacting with others and strengthen your collateral. You just need to fence it and keep the grass mowed.
Once your collateral is solid and you are sure, you should be able to acquire a respectable equity loan and have your proof of credit ready. Then consider your risk: how much can you afford to bet on without jeopardizing your health or sleep? Then select if you want to renovate for rent or flip, or if you want to develop or franchise. Whatever you decide, it must all have a business strategy that will lead to profitability at some point.
Once your business strategy is in place, go to your local land or housing authority for a list of properties with unpaid taxes and begin attending auctions. For the first several weeks, don’t bid on anything; just attend and network, taking notes. Visit the neighborhoods and chat with the residents to find out why they are leaving. Once you gain a feel for it and your confidence grows, it’s all or nothing. Rent what you can’t sell… and destroy and keep what you can’t rent.