One of the most challenging aspects of real estate investing is getting comfortable with rejections. Why do I say that? Because when you’re starting new, you have no connections, no cash, and experience so what can you do. Getting yourself to knock on each and every door is the way to start. It’s 100% hustle and 0% excuses. At least that’s where I start my journey. Many gave up along the way because it wasn’t as glamorous as they thought it would be for them. Start conditioning your mind to see rejection as a step closer to success and not a barrier to stop you.
What happens if you don’t have the money to invest in real estate but you still want to own a few properties? Here is one method you can use if you can’t afford to take on any excessive risk, real estate wholesaling with an options contract.
Why Wholesaling With Options Contracts?
How wholesaling work is pretty simple, all you have to do is go out and find what you believe to be an incredible deal and signs an agreement with the seller that gives him the option to buy the property at a later date. Once all that works out, you need to find another investor and assign the contract to him at a higher purchase price.
What are you making? The difference between the original price and the higher purchase price you selling it at. This is extremely advantageous to you because:
Flexibility: You don’t have to worry about anything because you get to decide on the decisions you make. Nobody is there to tell you what you can’t do and who you can’t meet. Being a successful wholesale investor you’ve got to work with a variety of buyers, including individual investors, institutional investors, contractors and builders, and recreational buyers. Having a diverse pool of people around you, you are more likely to get more deals done. Wholesaling gives you the freedom to work on your own terms without having to tie on to anything.
Low barriers to entry: In wholesaling, you don’t have to worry about other elements because all you’re doing is acting as a middleman between the seller and the future buyer.
Time: You are your own boss. No weekly target, no monthly target, an options contract, you don’t have to feel rushed to make a deal happen. Takes the pressure off your shoulder but that doesn’t mean that you can slack it off. Remember to be the hardest worker in the room if you really want to see some good returns.
High Reward, Low Risk: How good is that? Believe it or not, with little or no cash at all you are able to make it work. Very minimal risk for you because there’s nothing you need to worry about except finding the right investor/ buyer. The only thing you need to give out in order to gain a high reward is a lot of time and energy to find an investor that will take over your contract.
No holding costs: With a wholesale contract, you don’t have to take ownership of any property, therefore, there is no fees or cost you need to bear. Typically there are repairs, fees, commissions, and upgrades that have to happen if you buy the property and hold it but that does not happen in this case. In this sense, your profits are true.
Quick cash: With this method, it gives you the opportunity to earn a quick return. It can take days, weeks and sometimes even hours. It all depends on the level of connection you have with people and how you manage it. Now that I’ve provided you a simple method you can use to generate revenue without any cash and experience on hand. It’s time for you to put them in use and try it out. Wholesaling isn’t a perfect investment strategy, but it’s certainly a viable one for investors who face certain constraints.
If you’re looking to gain more insights and tips on the real estate industry, you can visit our “digital realtor” blog more often. We do provide a decent amount of useful tips and knowledge for anyone who is looking to take it to the next level.