At The Peak Group, we're intimately familiar with real estate wholesaling. It's one of three primary ways in which we acquire properties to grow our offerings for the Peak Housing REIT. With the purchasing power we have at our scale combined with the benefits of vertical integration, we're able to maximize this buying strategy and introduce value-add properties consistently.
However, we also view our ability to purchase future investment properties wholesale as an opportunity to rescue burdened homeowners or investors from a property they don't have the funds to flip on their own. Profitability takes work, and vertical integration is challenging to achieve for small-scale investors.
At The Peak Group, we enjoy the benefits of having multiple companies under our operating umbrella, from construction to property management. This allows us not only to purchase real estate but also to renovate it from the foundation up into an outperforming and desirable rental asset.
For a single homeowner or solo investor, the renovation of the property in question without in-house connections may end up costing more than the return on investment you'd realize from a sale. You may find yourself in a scenario where you aren't even able to sell the property under current real estate standards without these costly renovations. That's where a wholesaling expert like The Peak Group can assist.
For anyone who desperately needs to offload a property for cash, working with an expert real estate wholesale professional may be the 'out' you've been looking for! This approach is less time consuming and tedious as opposed to selling a sinking property yourself.
A real estate wholesaler buys properties off-market and for cash from property owners who require a quick sale. Because of their streamlined business model, they are perfect for a property seller who:
- Needs to sell a property fast due to time constraints: A seller may prefer a quick sale due to a financial crisis if they are moving, are working through a family tragedy, or if the property is in a declining neighborhood.
- Needs to sell a run-down property: We've covered this one a bit above, but the property owner may not have the money or time investment necessary to fix the issues currently plaguing the property.
- Needs to sell a property mired in legal issues: A seller might not have the required funds and resources necessary to solve legal disputes hanging over the property before a sale.
If you find yourself in any of the above scenarios, you're likely ready to find the right wholesaling expert to lift the burden of a bogged-down property off of your shoulders. However, you need to know which traits the right wholesaling partner will have, first.
With all of the real estate scams playing out across the internet and traffic stops across America, property owners need to protect themselves when going this route.
Details to Look for in a Real Estate Wholesaling Company
Most real estate wholesalers promise reasonable timelines and good deals. But getting one who can and will deliver takes time and effort. At The Peak Group, our vertically-integrated company structure allows us to move on purchases right away—there are no middling details to work out.
However, if you choose to work with a different provider, here's what you should look out for when choosing a real estate wholesaling company.
Knowledge of the DFW Real Estate Market
Even if you are selling a property outside of traditional channels, everyone wants to get the best deal for the real estate they own. Wholesaling companies should have employees who are well-versed in the area's market. For instance, a real estate wholesaling company looking into selling a property to a flipper should be able to give them a reasonable ballpark figure of how much repairs will cost.
When buying a property, a good wholesaling company will have done its homework on the local market and the property's value before developing a contract with a seller.
Presentation Skills to Seal the Deal
The real estate market is all about numbers. While the company should be well versed with the numbers involved before closing the deal, they should present the information in a way that's easy to understand and digest. As opposed to using real estate industry jargon, a good wholesaling company should present the deal in a way that the numbers speak for themselves. This is to the benefit of both sellers and buyers.
Unlike commodity and stock markets that are regulated and transparent, the real estate market is not straightforward. You will want to verify the credibility and work ethic of the company you will be working with before you get into a contract with them.
- One of the easiest ways to ensure that you are dealing with a credible and legitimate wholesaling company is by soliciting previous clients' recommendations.
- Such a company will not hesitate to avail of such information along with the clients' contacts. Also, pay attention to reviews on the company's website or social media pages. Their track record should be able to speak for itself.
Building networks is also critical for a wholesaling company's long-term success. You will want to work with a company that is well connected with other real estate industry players such as home inspectors, appraisers, stagers, mortgage companies, and expert property management companies. At The Peak Group, we incorporate all of these elements in-house.
The Company Is All About Win-Win Contracts
Like most service industries, the real estate industry is all about building solid relationships. In essence, a real estate wholesaling company that only concentrates on its bottom line will not last as long compared to one that cares for its clients.
If you are a property owner, choose a wholesaling company willing to negotiate on such terms as assignment fees.
Communication and responsiveness
A good real estate wholesaling company does not necessarily buy and sell properties: it sells itself. This means that the staff should always be ready to listen to and address your concerns. A good wholesaling company promptly follows up leads, communicates well, and pays attention to the needs of those they serve.
When choosing a wholesaling company, it's wise to do your due diligence. As a seller, you will want to know the value of the property you are selling to avoid being shortchanged. Even a distressed property in the right hands has inherent structural and land-based value.
If you have a property you've been struggling to escape, get in touch with us here at The Peak Group! We're able to acquire properties directly from homeowners and investors who have been caught under the weight of overwhelming issues preventing a traditional sale.
Posted by The Peak Group on November 26, 2020