It can be intimidating for people who are interested in entering the real estate investment market to get started. Most people think you need lots of up-front capital, and a wealth of insider knowledge, to get into the world of real estate investors. But Hard Money Bankers, a money lending company that is known for providing fast and flexible financing for investments, believes that new real estate investors can get their teeth in the game with wholesaling. Hard Money Bankers is known for giving advice on many aspects of real estate financing and investing, from house flipping to how their loans can help you. Now, they’re offering their expert opinion as to why wholesaling may be the perfect option for new real estate investors.
What is wholesaling?
When it comes to properties, wholesaling is very different from what you might think. In real estate wholesaling, the wholesaler really works as a middleman. They contract a property which already has a seller, then they work to find potential buyers, before the original seller does. The idea is that the wholesaler will find a buyer willing to pay a higher price, therefore making a profit, by keeping the difference.
Why Wholesaling is Perfect for New Real Estate Investors
According to Hard Money Bankers, real estate wholesaling is perfect for new investors for several reasons.
- Most of the time, you need very little capital upfront to get started, because you’re not actually investing in the property yourself. With typical real estate investments, you need a lot of cash or financing, in order to acquire new properties. Real estate wholesaling gives people the ability to invest in properties, with much less capital in the beginning.
- An alternative to wholesaling for investors is house flipping. But with house flipping, you need to not only invest in the property, but also know how to properly fix it up, and know the details and nuances of real estate selling. It can be very profitable, but also inaccessible and very complicated for new investors.
Things to Know About Wholesaling
Wholesaling can be a great way for new investors to get started in real estate investment. It can take a little bit of time and tweaking to figure out how to perfectly price your properties, in order to make a profit, while not scaring off potential buyers with a high price tag. You also need to find properties to wholesale. Oftentimes, properties that need work or are in distress are good options for wholesaling. Wholesaling can sometimes be a slow process, and it definitely takes time and research to figure out the ropes. But real estate wholesaling is a great option for those looking to get their start in real estate investment.
About Hard Money Bankers
Hard Money Bankers is a fast and flexible lending company, which is both full service, and self-funded. They provide fast and smooth financing options for both residential and commercial investment opportunities. Hard Money Bankers currently lends in Maryland, Washington D.C., Virginia, Pennsylvania, Delaware, and New Jersey. Visit their website at https://hardmoneybankers.com/.