Benefits of Buying a Property From a Wholesaler
Wholesaling is a common practice by many real estate investors and has become a leading source for investors. A wholesaler is someone who acts as a middleman between a seller and a buyer. A wholesaler can be an individual or a small business that specializes in wholesaling.
A wholesaler typically negotiates a discounted price with the seller and then gets it under contract and sells the contract to a cash buyer. The cash buyer would then take on the responsibility of repairing the property to be later sold or hold on to the property and use it as a cash flow investment property. In some cases, wholesalers themselves would renovate the Probate Realtor Tucson property before reselling or hold the property for a period of time before reselling the property.
The benefits of dealing with a wholesaler is that you know you are dealing with people who have the experience to buy and sell properties. Often this is what they specialize in and do it frequently and do it well.
Buying from a wholesaler allows a cash buyer to potentially save as much as 20% to 40% on the investment property. The best approach for an investor, if they are interested in having access to these properties, is to access and get on several wholesaler e-mail lists so that they can be the first people to learn about these deals in their area. If a wholesaler and the cash buyer develop a good relationship, the wholesaler will actually seek out those properties that the cash buyer is most interested in.
A wholesaler will work to build their buyer’s list so that as properties become available, they can sell them quickly. Some buyers may ask to be on the preferred list and are willing to pre-qualify so that they are contacted first when a good property becomes available. It is good for the cash buyer to ask a wholesaler whether they have such a list in addition to the general buyer’s list. The wholesaler will then contact the preferred list first and then the general buyer’s list.
Another advantage of dealing with wholesalers is that sellers benefit too. Often the sellers that wholesalers work with need to get out of their properties quickly and a wholesaler can facilitate that by working with their list of cash buyers and can often close on the property within 30 days.