Tips For Locating Real Estate At Wholesale Prices

by : Kevin Kiene

Wholesaling most often refers to the process of buying real estate for below it's market value, and then selling that property to another investor, without fixing it up - this process is also sometimes known as "flipping properties"

Buying and selling or "flipping" properties that were purchased at wholesale prices can be challenging and difficult. If an owner of a property finds out that you are a real estate investor, they may raise there asking price knowing there you only buy wholesale.

Even though the entire process of flipping can be difficult, locating wholesale real estate can be relatively easy - if you know where to look. The people that are willing to sell their house at wholesale prices are usually known as "motivated sellers" - people need to sell their house quickly for any number of different reasons. This may include divorce, foreclosure, the owner may have needed to relocate due to personal or health issues or various other reasons.

There are several ways to locate wholesale real estate ideal for flipping. Some great wholesale property can be obtained from various government agencies' that may have taken over a property. This may be due to the owner failing to pay their taxes or their mortgage (HUD Homes, VA Homes, etc.).

You may want to concentrate on searching for foreclosure real estate. Banks and other lenders often supply lists of properties that they are selling or you may want to look in the legal sections of various newspapers and business journals under the notices issued by the city or county. The city or county may have "red-tagged" properties which they see as unfit for human habitation because of a safety or health issue.

Look in newspapers for advertisements from people that say things like - "We buy Houses". These ads are usually placed by fellow investors who may have a good list of properties that they are selling and there is nothing to stop you calling them.

Networking is critical when you are trying to locate wholesale real estate. Contact local realtors and make them aware that you are interested in wholesale deals. Creating a good network of contacts is invaluable and one of the most important things you can do. Don't forget to follow up with your contacts - rather than waiting for them to call you back.

Sometimes a simple approach may be the most effective. There are many successful investors that simply drive around in respectable neighborhoods to look for slightly run down houses that may be for sale. It is just a matter of time until you locate a perfect property to flip. Each time it will get easier and easier. Focus on which system works best for you and before you know it, properties will start to find you. With the right knowledge, foresight and connections it can be a very profitable venture.