Tag: Land Wholesaling

3 Successful Real Estate Wholesalers You Should Learn From Today

Post author By Ana Hernandez
Post date June 20, 2023

*Source: Photo by* *Jud Mackrill* on Unsplash

Are you struggling to make headway in the world of real estate wholesaling? Don’t give up! Learning from the experience of successful wholesale experts can give you the inspiration you need to move forward.

These trailblazers share their knowledge and expertise on everything from marketing to investing strategies. Follow their advice, and you too can turn your wholesale business into a profitable endeavor.

#1 Kent Clothier

Kent Clothier, CEO and founder of Real Estate Worldwide (REWW), is a visionary leader in the real estate industry. His expertise in generating high-quality prospects has led to the purchase and sale of over 4,000 properties, and his commitment to revolutionizing the industry has helped over 55,000 clients achieve their real estate goals.

Real estate wholesalers looking to improve in the industry can learn from Kent’s success. Through REWW’s educational platforms, he shares his perfected systems and processes for generating high-quality buying and selling prospects.

Kent’s vision for better technology and resources has led to REWW’s success, and he shares his knowledge and experiences through videos, podcasts, and a book. REWW Academy’s certification course teaches innovative marketing channels for wholesale real estate, allowing wholesalers to learn from the best and earn the title of Certified Real Estate Wholesaling Specialist.

#2 Carlos Reyes

Carlos Reyes is a first-generation US immigrant who left his corporate job in 2015 to pursue his dream of building his own real estate investment business. With the help of his partner, Sal Shakir, Carlos quickly built a successful business that generates six figures monthly from multiple markets across the country.

Carlos not only achieved great success as a businessman but also worked to empower others to achieve their own goals and dreams in real estate investing. He shares his knowledge and wisdom on topics such as wholesaling, marketing, and investing strategies via coaching and educational seminars nationwide.

Carlos offers a Real Estate Investing A to Z Bundle, which includes three comprehensive courses, covering wholesaling, maximizing profits, and virtual wholesaling. In addition to courses, Carlos also has podcasts and videos that feature other leaders in the industry sharing their experiences.

Through his coaching and educational resources, Carlos Reyes is a valuable source of knowledge and inspiration for wholesalers who want to improve their skills and succeed in real estate investing.

#3 Alex Joungblood

Alex Joungblood, the founder of the Wholesaling Houses Full Time Facebook group, is a real estate investor with 19+ years of experience. He has completed $35 million worth of real estate transactions, scaling his business from wholesaling to renovations, new construction projects, and small developments.

What makes Joungblood stand out is his belief in using real estate to become financially independent, allowing you to spend more time with family and less time trading hours for dollars.

Joungblood offers mentorship services to help aspiring investors find their first deal or scale up their business for more profits. He shares his experiences and expertise through his Facebook group and coaching programs. By learning from Joungblood, wholesalers can gain insights on finding discounted real estate investments, building a successful real estate business, and achieving financial independence.

His success story is an inspiration to many, and his willingness to share his knowledge to help others achieve their goals makes him an excellent source for wholesalers looking to succeed in the industry.

Is There a Better Way to Learn Than From the Best?

Experienced investors’ knowledge and expertise are essential to wholesaling real estate successfully. Fortunately, professionals like Kent, Carlos, and Alex offer their insights and advice to help novice investors increase their chances of success.

By utilizing their strategies, anyone can learn how to wholesale real estate effectively and reap the rewards of this profitable endeavor. Stay updated on industry news by subscribing to our newsletter!

Tags Land Wholesaling, Landlord, Property Management, Real Estate Wholesaler, real estate wholesaling, Wholesale Marketing, Wholesaler, wholesaling

Wholesale Wholesaling

Every Wholesaler’s Ultimate Guide to Driving for Dollars

Post author By Ana Hernandez
Post date May 23, 2023

Man driving. — *Source:* *Why Kei*from Unsplash.

You know that boarded-up, overgrown property you drive by every day? Other wholesalers see those, buy them for a low price, and sell it at a higher price point to investors willing to fix the property up. You can do the same—the scouting method called Driving for Dollars.

Scour the streets from behind the wheel of your car, and seek out hidden opportunities in real estate! In this article, we’ll look at why driving for dollars is a good wholesaling strategy, how it works, plus tips on how to make your driving for dollars an organized process.

What is Driving for Dollars?

Real estate wholesalers who drive for dollars comb through neighborhoods looking for distressed or neglected properties from the back of their steering wheel. Once they see a potential property, they’ll cold-contact the owner to see if they’re willing to sell (i.e., a motivated seller). If the owner’s willing to sell, the wholesaler puts them under contract and then finds an investor to purchase and rehabilitate the property.

The driving for dollars strategy is an excellent, no-brainer way for wholesalers to seek out potential properties and seal more deals. With a watchful eye and a bit of savvy, you could uncover hidden gems and pocket some serious profits by, very simply, driving around.

What Should You Look Out for While Driving Around?

Driving for dollars focuses on distressed homes that present the possibility to be sold under market value. But, what does “distressed” actually mean? Here are the 3 criteria that qualify a property as such:

#1 Physical Damage

Physical house damage represents the most important kind of distress that you’ll look for. While you’re driving around the neighborhood, look for obvious signs that the property is run-down in any way, like:

Broken windows
Boarded-up doors and windows
Damaged driveways
Damaged roof
Messy garden or yard

Clear signs of distress qualify a property for your list of potential properties to wholesale. Take notes and photos (if appropriate) of these signs so you can look back at them when you need to.

#2 Outdated Design

A house may be outdated if the interior or exterior design isn’t aligned with the current trends. Outdated designs can range from something simple like unpopular wall colors, unmentionable carpet in the kitchen or laundry space, or seriously unsightly popcorn ceilings that have to be removed for health reasons.

For interior designs, you’ll have to ask for permission from the owner to enter the premises. Once you get in, it’s as simple as keeping an eye out for outdated details.

#3 Owner’s Situation

An owner’s financial or other life situation might be a distressing issue that motivates them to sell an inhabited or uninhabited run-down property for below market value. The owner’s situation might not be something you can quickly see on a drive-by, so make note of physical signs of property distress first and use them as clues to learn more about the owner’s situation.

For example, if the house is a rental property, the owner might not live in it and could be too busy to deal with maintenance. They might want to avoid going through the hassle of selling the property and wholesaling could be an easy solution to get rid of it for quick cash.

Want to Make Driving for Dollars a Lot Easier?

Driving for dollars is a great way for beginner wholesalers and experts alike to invest in the market, but it takes time and patience. It can be difficult to keep track of every street you’ve driven on and every house you’ve seen.

Several apps designed to guide and organize driving for dollars are available on the market—the most notable of which is called PropStream.

The PropStream driving for dollars app is designed to make driving for dollars a straightforward process. The app’s features narrow your search according to your preferred filters to save you time on your drive.

PropStream driving for dollars app provides:

Property results up to 50 miles away: Filters for specific property criteria
Filtered property information: Narrows your search by lot size, year built, home features
Multiple Listing Service (MLS) statuses: Tells whether the property is on or off the market, for how many days it’s been listed or off-market, and if the listing is below the market price
Pre-foreclosure or bank-owned: Removes properties listed as pre-foreclosure or owned by a bank, whether you’re interested in that or not

If you want a more flexible drive looking for distressed or vacant homes, another PropStream feature, “just drive,” gives real-time and recordable route directions. You can even tap on properties around you to see the property’s detail and save the listing for future reference.

Overall, PropStream helps you keep your freestyle property searches organized.

Drive for Dollars, Find the Right Property, and Profit

Driving for Dollars is undoubtedly a valuable skill to add to your real estate wholesaling repertoire. Whether you’re looking to make some quick cash or engage in some long-term projects, the effort that goes into driving for dollars can yield great rewards.

If you’re dedicated and have a sharp eye for detail, you’ll properly assess potential properties to wholesale and identify deals that fit your criteria. So get out there, keep that eagle eye on the street, and you’ll land a lucrative deal before you know it.

Sign up to our newsletter to know what’s the latest news in the real estate world—to help you make the best investment decision.

Tags Land Wholesaling, Landlord, Property Management, Real Estate, real estate wholesaling, Rental Marketing, Wholesale Marketing, Wholesaler, wholesaling

Wholesaling

How Wholesalers Can Monetize Land and Increase Value

Post author By Ana Hernandez
Post date April 1, 2020

Land leasing is a good option for achieving long-term returns on your investment

Land is a form of real estate often neglected by wholesalers. Most wholesalers flip properties, but flipping undeveloped land has unique advantages of its own. It requires less upfront capital, and there is less competition.

The typical land wholesaling model is the same as property wholesaling: you enter into a contract with a motivated seller to purchase the land below current market value, and then either flip the land or sell the rights to the purchase contract to a third party for a profit. But one added benefit of land wholesaling is there are options to further increase the value of raw land while you have it under contract, by subdividing it into multiple parcels or applying for a change in zoning.

Rezoning to Add Value

Rezoning, or changing the use district of a particular parcel of land, is a common way to increase the value of non-residentially zoned land. By changing the use district of industrial or agricultural land to residential or commercial use, you can increase the value of your land by anywhere from 100-400% of its original value. You don’t have to own the land outright to apply for rezoning – just make sure that rezoning is permitted in your contract with the seller if you intend to change its use district before flipping it.

The process of applying for rezoning can take a few months or up to 2-3 years, and in addition to meeting all the requirements set by your local authority, it’s also important that you research and understand your city’s plans for development in the future. For example, changing from a residential to commercial use district could either increase or decrease the value of land, depending on whether or not the city has plans to prioritize commercial development in that area in the coming years.

Splitting Parcels

Subdividing land, or splitting a single plot of land into two or more parcels, can increase the value of land and the total amount of rental income you receive from it. Legally subdividing a property can be a lengthy process – it usually takes several weeks or months from start to finish, and will require that you submit an application to the local authority for approval. You also have to take into account the zoning restrictions and specific rules in your area (such as the minimum permitted plot size) when splitting your land into parcels, and will need to hire a surveyor to plat the land. Usually it costs between $1,000-$3,000 to subdivide a piece of land into two parcels, but the benefits of doing so can be considerable. Smaller parcels are more affordable, and thus appeal to a larger number of buyers and tenants, and it’s possible to increase profits on a single piece of land by as much as 100% when selling or renting it out as two smaller parcels.

As long as it’s permitted in your contract with the seller, you can subdivide land while still under contract, but you will need to close with the seller before selling the individual subdivided parcels outright. The major benefit of this wholesaling strategy is that you can subdivide a plot into 4 parcels, for example, and sell 2 of them outright, leaving you with 2 parcels that you own free and clear.

Don’t be scared off if you find a great piece of land to wholesale and you’re worried it will take too long to rezone or split. Instead, negotiate with the seller on a longer purchase contract as it doesn’t hurt to ask. If that doesn’t work, you can also try more of a partnership agreement with the seller, where you do all the work and then split the profits.

How to Monetize Undeveloped Land

Once you’ve sold some of your subdivided parcels and closed the contract on a land wholesale deal, you can sell the remainder of the parcels outright, or monetize them in other ways.

Developing raw land yourself can be a costly and time-consuming process which may not be feasible for wholesalers operating in different states. There are other ways you can generate income from land without having to develop it. These options do take more time and energy than simply selling your land immediately, but the result is higher profits on each plot you own in the long term.

Rent your land to a small business venture

Land leasing is a good option for achieving long-term returns on your investment. If you market your property to the right audience, you’ll find there are a whole range of unexpected business plans which only require raw land to get started. Archery ranges, escape rooms, and drone race tracks are just a few examples of businesses that will pay to rent land, even without any structures or facilities in place. These businesses generally require plots anywhere from .2 – 3 acres in size, so even if you don’t have a huge amount of land, this can still be a viable option for you.

Put up a parking lot (without paving paradise)

Having a parking lot can be an inexpensive way of monetizing your land. Even if your land isn’t near a very transited area, you shouldn’t necessarily discard this option.

Try to think of who may have parking needs and may want to pay lower fees than those charged in downtown areas. A perfect example would be truck, bus and coach companies, since these usually prefer inexpensive options to keep their vehicles overnight, as opposed to expensive central locations. For some of these clients, you won’t even need to pave the land, and they usually pay somewhere around $10 per vehicle for parking overnight.

Rent-to-own

Rent-to-own is a type of transaction in which the tenant is given the opportunity to buy the property outright after a maximum lease period of 5 years. The tenant usually pays you an initial deposit of 3-5% of the property’s value as a purchase option. A portion of the monthly rent then goes towards the purchase price of the land, and after the initial leasing period, the tenant can exercise the purchase option. If they choose not to proceed with the purchase, you can begin the process over again with a new tenant once the agreement ends. It’s also possible to monetize land using a lease-to-own agreement while you still have the land under contract. With a sandwich lease agreement, you can sign a lease-to-own contract with the seller, then sign a separate lease-to-own agreement with a tenant-buyer of your own, who pays a higher rental rate. Once the lease term concludes, you can complete the agreement with the seller and close the deal with your tenant-buyer.

Partner Up!

If you’ve got a free and clear piece of land, it’s an asset, that like cash, you can invest in a deal. In this case you can put up your land as your part of an investment in a new construction or development project. Look for active builders and developers in the area of the land and see what they’re interested in doing.

If you subdivide into parcels, wholesaling land could lead to you owning some plots essentially for free. Whether you decide to sell these outright or pursue a long-term monetization strategy for the land you own, any revenue you receive will be 100% profit, and that’s perhaps the biggest advantage of the land wholesale investment model.

Image Courtesy of Marek Mucha

Tags Land Wholesaling, Raw Land, Real Estate