Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Mistakes to Avoid in Wholesale Real Estate Investing

By Simon Macharia Subscribe to RSS | March 6th 2012 | Views:
loading
 
  



Wholesale real estate investing is the fastest way to make money in real estate. You also need little to no money to get started.

However, you must look out for some common mistakes that can be costly to your business.

1. Buying in the wrong area

This rule is golden in real estate investing - you must buy from the right neighborhoods. Avoid buying houses from war zones or you might not have any interested buyers.

Likewise, the very high end neighborhoods are not the best places to flip houses.

Better go for the middle level areas where you also find most of the properties. In my area, I stick to neighborhoods with houses between $100,000 and 200,000.

2. Wrong repair estimates

If you wholesale houses, you must be able to estimate repairs fairly. You do not need to be accurate to the nail.

You should be able to spot all required repairs - some of them can get expensive like roof, foundation and structural repairs. Less costly ones include Carpet, paint, kitchen bathrooms, windows, fixtures, etc. The best way is to have ball-park figures for each item. This way, you can estimate repairs in 10 to 15 minutes of seeing the house.

You must estimate your repairs on the higher side to be safe.

3. Paying too much for properties

Paying too much for houses is a common mistake. You must have a simple calculation of your offer price. Never pay more than your offer price. It is better to negotiate with the seller than to end up making a loss or being stuck with a house you cannot sell.

4. Not making enough offers

You cannot buy houses if you are not making enough offers. Some of your offers will be rejected, but some will be accepted. The more offers you make, the more houses you will buy.

Another common misconception is to think you must have cash, and ready buyers, before you can buy houses. This is not true. The only money you probably need is earnest money.

We have covered how to sell your houses fast in separate articles.

5. Not having a good follow-up system

A real estate website that automatically follows up with motivated sellers is a must. This will save you time and the risk of forgetting to follow up.

Since you are always in touch with motivated sellers, you end up closing more deals.

6. Not following up with the closing process

After you find a buyer for your property, you must collect earnest money, which they stand to lose if they do not close. Make sure this is a substantial amount.

You must make sure you know where they are getting their cash. Have they just sold a house? Are they getting it from a line of credit? Get another buyer if they tell you they are getting a mortgage; wholesale deals are not funded by conventional mortgages.

7. Not keeping in touch with the seller

Keep your seller on the loop at all times. Sometimes you find you need to re-negotiate.

Simon Macharia - About Author:
Be sure to learn some helpful real estate investing tips that work in the current market. Whether you buy or sell houses or even wholesale them, learn how an automated website for real estate investing can make a huge difference by closing more deals spending less time, money and effort.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/mistakes-to-avoid-in-wholesale-real-estate-investing.htm

Related Real Estate Articles Subscribe to RSS

Cape Coral real estate a great investment make no mistake
Published by Anne Mary on December 10th 2011 | Real Estate
Cape Coral has some of the finest properties in fantastic surroundings, but mistakes in the real est...
 
Get authentic and reliable real estate renting company
Published by Abhay Singh on January 7th 2012 | Real Estate
Rapid industrialization and urbanization is paving the way for more and more demand for flats and ot...
 
 
Tips on how to make money on real estate foreclosures
Published by Shaz Memon on December 26th 2011 | Finance
Making money on real estate foreclosures is indeed a good idea. Get cheaper ones and earn good money...
 
Why you ought to Buy a home in Bay Location Real estate Like Walnut Creek, Brentwood and Antioch?
Published by Yurem on January 3rd 2012 | Real Estate
As a result of continuing economic situation worldwide the values of bay area houses for sale may be...
 
Cape Coral real estate a bargain in waiting
Published by Anne Mary on December 10th 2011 | Real Estate
The real estate markets in Florida and Cape Coral in particular continue to flourish, with some fabu...
 
Hire estate agents Marlow for smooth property deals
Published by Ricky Charles on January 4th 2012 | Real Estate
Many businesses have flourished and doomed but the real estate business has somehow managed to keep ...
 
Explore real estate companies for housing accommodations
Published by Abhay Singh on December 30th 2011 | Real Estate
We have to move to many places in our entire life span, sometimes in search of better education, som...
 
Real estate agents in California
Published by Fawad Umair on June 30th 2012 | Real Estate

Once you may have located real estate you should buy, you are going to begin seeing and hearing ...
 
Real-estate, Business
Published by Dolly on January 13th 2012 | Real Estate
Our moto has always been to 'put customers first!', that is to treat them our customers with the mea...
 
Looking for an estate agent
Published by Glyn Jones on May 10th 2012 | Real Estate
Is it advisable to work with several agents, probably not. Agents know if you are working with more ...
 
Port Washington NY Real estate is a boom for investors
Published by on July 14th 2012 | Real Estate
Investors whether they are small or big, always looks for an opportunity and many of they are contin...
 
Playa Del Carmen real estate – the right buy for Retirees?
Published by Tom Budniak on December 27th 2011 | Real Estate
Whenever a retirement destinations of international quality are discussed, one name that features am...
 
Buy a Property in Cyprus in real and very cheap rates
Published by Jane Cyrus on February 6th 2012 | Real Estate
Are you planning to buy a property in Cyprus? But purchasing a property without an agent is stressf...
 
Residential real estate in India- a lucrative investment
Published by Deepti on April 30th 2012 | Real Estate
Buying or selling property is always a great investment option as it is likely to give good prospect...
 
Port Washington real estate is one time solution for all property queries
Published by Jack Smith on June 15th 2012 | Real Estate
Anyone can have lot of queries when they go for property dealing. But your all queries resolved with...
 
Real estate marketing is essential
Published by John Mathews on August 4th 2012 | Real Estate
In the real estate business, marketing is very essential. The more effort you put in with your marke...
 
Some important legal formalities in real estate Malaysia
Published by Rick Foster on January 28th 2012 | Real Estate
Once an agreement is reached, the papers and documents are prepared that are then signed by both the...
 
How a real estate agent can help you find your dream home
Published by Deepti on April 17th 2012 | Real Estate
If you are planning to buy a new home, you would need to seek the assistance of an expert real estat...
 
Dubai, a real charm for investors and residents alike
Published by Mark Castellino on December 27th 2011 | Real Estate
Dubai is one the real charms for the real estate investors. So many investors invest their money in ...