While highly lucrative, investing in real estate can be expensive. There are down payments and closing costs, as well as the ongoing expense of owning and maintaining a property. But you also hear stories of investors getting into real estate with no money. How are they doing it?
Many real estate investors are tapping into wholesaling to invest with very little (if any) money. Anyone can become a real estate wholesaler. You just need to know how it’s done.
We’ll show you how to use wholesaling to become a real estate investor with no money.
Wholesaling is the process of getting a property under contract, then selling the contract to a new buyer. It’s almost like flipping, but instead of fixing and flipping the tangible real estate, you’re flipping the purchase contract.
Here are the basic steps in the wholesaling process:
Wholesaling comes with several advantages:
Wholesaling also comes with a few potential pitfalls, including:
Given those real risks, wholesaling isn't something to dive into unprepared. Being a successful real estate wholesaler requires a few resources and skills.
First, you need a way to find real estate deals. With PropStream’s smart property search tools, you can find distressed properties and pre-foreclosure properties with motivated sellers. Motivated sellers are more likely to accept less than market value for their properties. Furthermore, you can use PropStream’s built-in skip-tracing to find owner contact information so you can reach out to them directly. As experienced real estate wholesaler Chris Piper notes, “PropStream is by FAR the best software you can utilize for real estate investing and wholesaling.”
You also need connections to potential buyers. The success of your wholesaling business depends on finding qualified buyers quickly. If you have an extensive network of potential buyers, you’ll have a substantial head start.
Finally, you can't wholesale effectively without local market knowledge. To know if you’re getting a good deal, you need to know your local real estate market. With PropStream’s current data, you can learn to recognize local market trends and stay ahead of them.
Wholesaling requires diligent real estate research, careful analysis, and a solid network of potential buyers. But when you invest the time in learning the ropes — and put your money into the right tools — wholesaling is the best way to become a real estate investor with no money.
With PropStream we can show you the steps to becoming a wholesaler with our free PropStream Academy Course - Introduction to Wholesaling.