Building a portfolio with real estate investment is a great way to build wealth and is statistically more stable than the stock market. The last thing you want to do as a real estate investor is to buy overpriced properties off of the MLS (Multiple Listing Service). This is where real estate wholesalers come in. They are able to acquire properties for less than market pricing and resell to buyers at or just below market pricing. You need to make sure they have market area knowledge, have a great track record, have a strong network of other investors and real estate professionals, and have an overall positive community presence. Here is an explanation of these four things to look for in a great Detroit wholesaler.
Area Market Knowledge
The first thing to look for in a great Detroit wholesaler is their market knowledge. A great wholesaler will be on top of the market and have monthly analyses completed for any area they operate in. They will know the market price of the property at any given moment and will be experts in the locations of the majority of their properties. There may be a few outliers in different locations, but you can be sure they have done their research on the property. We as wholesalers make sure to research and verify every aspect of the property to make sure it is a solid investment to add to your portfolio.
Proven Track Record
The second thing to look for in a great Detroit wholesaler is their track record. A great wholesaler will have lots of transactions in their specialized market which can also be used as their baseline for making offers to sellers. Many of these great wholesalers have years and years of transaction history. Even though a wholesaler might only have a few months or a few years of transaction history, it is important to look for transactions with good margins. The property sales with the end buyer pricing close to regular market pricing or slightly below is a great sign. This means they are able to acquire properties with purchase pricing low enough to leave enough room for both of you to make some money!
Strong Real Estate Network
The third thing to look for in a great Detroit wholesaler is a strong network. Great wholesalers have a great marketing strategy to reach new buyers and sellers. This will include multiple approaches like a large email list, a mailing campaign, or real estate meet-up groups. With a strong network of buyers and sellers, the great wholesaler can easily acquire new properties and sell them in bulk to buyers wanting to build their portfolios.
Positive Community Presence
The fourth thing to look for in a great Detroit wholesaler is a positive community presence. It’s a sign of a great wholesaler if other real estate professionals or buyers refer you to buy properties from them. If they attend a real estate networking event, take a look at how they present themselves. Are they open and talking with people? What does their marketing material convey? You also might want to check out their websites, social media, and other third-party review sites. What are others saying about them? If they do have negative reviews, how did they handle them?
Here at Sell Inherited House Detroit, we are a great, reliable source of wholesale real estate to help you stock your portfolio with quality real estate. We thoroughly review all of our properties for certain red flags and quality before offering them for sale.