Real Estate Wholesaling – Pluses & Minuses

Real Estate Wholesaling

If you have not heard about the term Real Estate Wholesaling or do not have much idea about it, can guide you. Real estate wholesaling is all about identifying undervalued properties and fetching right buyers for the same; each deal is rewarded with a considerable amount of commissions. As per Wholesaling Inc, the most essential part of it being able to identify sellers who are looking to quickly dispose of the property for whatever reason and also matching them with buyers who are looking to buy it for investment, resale or rent purposes. Here are the advantages (plusses) and disadvantages (minuses)of wholesaling which will help you in deciding if this is the right career for you.

Some of the main advantages of real estate wholesaling are:
· You get to make a good amount of money legally and that too in quicktime. You are not dependant on anyone else or any firm for making your money; your efforts are directly rewarded with profits.
· Being an outsider, you may not know much about real estate, but when you start your career in real estate wholesaling, you are sure to learn a lot about the industry and that too in a breakneck pace. More the work you do, more information you can collect!
· Real estate wholesaling is one way in which you can make money without any financial investments. There is no credit facility involved due to which you have to run pillar to post to collect money. Nor do you need to invest any money in starting this career. All the investment that you need to put in is only your time, knowledge and effort.
· You get to work in your own time. There are no strict work hours for you, though you will have to be available at the time that buyers would like the view the property.
· There is no location restriction for you. As a real estate wholesaler, you can go beyond demographics and promote property in any other location as well, provided you are willing to travel there frequently to show it to prospective buyers.

Any opportunity that has a lot of advantages is sure to have some disadvantages as well. It’s listed here for you:
· There is no guarantee of income like that when you work for corporate offices where you are entitled to a monthly salary. You get commissions whenever you close a deal; there could be some months with many deals and some with no deals at all.
· Sometimes it may become difficult to find a buyer for a particular property then it could become challenging.
· You need to be up-to-date with the list of buyers and act quickly before they see and decide on buying some other property. You should build customer loyalty, which will help you in future transactions.

Once you are aware of both the positives and negatives of the trade, you can try to focus on the good ones and try to avoid the bad ones. Good luck with real estate wholesaling!

Challenges Confronted While Hiring A Builder

Whether it is a home renovation or building a new home, you cannot do without hiring a builder. Remember a builder can make or break your dream home aspirations. You would have heard endless stories from your friends and on the social media on how home builders are cheating homeowners. To make sure you do not burn a hole in your pocket it is important to choose the right builder. So, what are the attributes of a good builder? If you are confused on how to accomplish the task unscathed, go ahead read on.

Licensed builder
Any tradesman has to possess the trade license to work in their region. Spending money on unlicensed builder can only leave you with more problems but is a waste of money. The state runs license checks on their builders regularly. So get onto the builders association website to find if your website is listed.

Home indemnity insurance
Ensure your home builder has home indemnity insurance before you make any financial transaction. It can help you cover financial losses in case the builder signs up for bankruptcy or becomes insolvent or disappears with your money.

Verify records
The records of the builder contribute to verify if they have any standing disputes in the court. It helps to check their credibility and professionalism. Moreover, it is an authenticity for their character.

Bankruptcy issues
Check if the builder has quit a project due to financial shortcomings. A company that has signed bankruptcy in the past could mean that your project could get stuck halfway. If you want your home up in a few months, it is a must to pick a builder free of bankruptcy woes.

Local builder
Hiring a local builder could be advantageous. They need not transport their manpower and resources to your destination. This way they waste time, energy and money in the process. A builder from your locality will be aware of the zone rules and can ensure your building is completed on time without any violations.

Building maintenance
The home builder has to agree to take care of building maintenance and repairs for a stipulated period of time after the handing over of the property. A 6 months maintenance is recommended for residential property and one year for commercial properties.

The property under construction has to be supervised by a professional. There should be an onsite supervisor to check if the job is completed, the raw material reaches on time and acts as a source of communication between the homeowner and the builder on a daily basis.

Review their recent projects
A look at their recent projects can tell you if you are dealing with a professional or an amateur. The quality of work is a testimony of their capability. Talk to their past clients to get their feedback on client satisfaction and experience. Do not hesitate; people will be sure to open up about their experiences.

Projects on hand
Find out how many projects they will be working simultaneously with yours. If there are too many, then you may land up in trouble. They may not be able to compete with the deadline. The lesser the projects, the quicker they can meet quality standards and deadlines.

A new home or renovation is a big financial commitment, and a lot of emotions are out into it. So be cautious to take the right step.

Do Not Forget These While Hiring A Builder

A new home is not just exciting but comes with loads of responsibilities. It starts with hiring the right builder. The whole exercise is stressful, expensive and takes a lot of time. Only quality craftsman can accomplish this task. The process starts early in the designing stage. The execution and completion stage also holds utmost importance. Some simple steps can help in identifying the right contractor for your building project.

Record the experiences of friends and family. Though, an architect can assist in this regard, getting first-hand information from close friends, lawyers, neighbors and real estate agents. The professional listing can go a long way in picking the right builder in your locality. No testimonials but reviews and images can guide your decision. If you find an impressive under-construction project in your locality, find out who is the contractor and find out if they can take up your projects.

The contractor needs a license to conduct his work in your locality. Those with a license are considered to be reliable as the building authorities authorize them. Check the license and the insurance to ensure you are in safe hands. Holding a license proves that the company can protect you from damages. Whenever there is an accident on the site, it is the responsibility of the contractor to cover damages as it falls under workers compensation insurance. The property owner is protected from such unexpected accidents.

Checking the portfolio of the contractor can help you decide if they will be able to handle a project of your style and magnitude. Their recently completed projects can give you an idea of their working style. Find out if their work carries a warranty to correct recurring problems at the site and if their previous projects are sustainable.

Who could vouch for a contractor better than their present and past clients? Get their contact information and talk to them in private. If the contractor is hesitant to provide their information, move on with other prospective builders. Some of the questions to bear in mind while talking to a reference is about their working relationship, communication, maintaining deadlines, working with a budget, no hidden conditions, problem-solving ability, and craftsmanship.

· Get your contract in writing.
· The construction company starts with a bid. For any changes in the plan, the bid has to be modified accordingly.
· The permits have to be duly approved and the costs finalized before starting work.
· Extra charge and changes are all part of the construction industry, so be mentally prepared. Keep a cushion of about 5% on your budget to be on the safer side. Though, if your builder is capable and experienced, they can cut down on the cost their excellent planning and design management.

Just like in any industry even the construction sector is shrouded by unscrupulous elements. Conduct proper research before finalizing on a contractor as the process involves a huge investment and for most, their lifetime earnings are at stake.