Real estate wholesaling is emerging as a gold standard to get started in the industry. Earlier in Texas, people could freely buy or sell their rights in real estate options and purchase contracts. That means they could freely start wholesaling real estate in Texas without a license.
But, these rights have been diminished since September 1, 2017, when Senate Bill 2212 was passed to amend the Texas Occupation Code. According to the new code, a wholesaler should disclose the rights being sold, and after this disclosure, they can conduct their business as usual.
What Does Real Estate Wholesaling Entail?
Since wholesaling has become a popular strategy to sell a property. It involves a straightforward process of finding great deals, getting a contract from the seller, and assigning this contract to an interested buyer. You can find properties available at rates below the current market value and earn a wholesaling fee.
Here are the best ways to generate better profits for your wholesaling real estate business:
Attract Buyers through MLS
When creating the online database or Multiple Listing Service (MLS), you can leverage the same for better lead generation. The platform is free to use after you get your license and pay general dues. Automate the MLS system and attract buyers by putting great offers in your listings.
Typically, there’s no restriction on the number of listings you can post. So, you can make as many offers as you want, though it requires a lot of time and effort, as well. Here again, you need to acquire your real estate license and adequately disclose your interest in the property when advertising it in the state of Texas.
Try Building a Bigger Buyer List
You need a vast buyers list to earn good profits in the real estate wholesaling business. Even if you have a small list, it should have dedicated buyers on board. When you have strong relationships with these buyers, there are more chances of the same investors being willing to work with you again.
So, whenever you complete a transaction, analyze the preferences, behaviors, and interests of each buyer. Depending on this analysis, find appropriate deals and properties that match their needs. It will not only streamline your business processes but also help to deliver excellent properties for wholesaling real estate in Texas.
Make an Infallible Exit Strategy
When you want to earn profits from a real estate wholesaling deal, there are two ways to go for it. You may sell the contract or execute a double closing. In the former, you needn’t own the property. You can instead make profits by matching the sellers with the buyers.
Double closing, on the other hand, involves actual ownership of the property. You should prefer this method of exit strategy only when you have a buyer intending to pay a higher price that covers the rehab costs.
While wholesaling real estate offers excellent opportunities to enter the real estate industry, it comes with some challenges, as well. With these strategies, you can mitigate them and earn good profits.