I like fast cars, large money, and fat cigars. But, I especially like wholesaling real estate. Because it’s fast. You don’t get bogged down in repairs. You don’t pay holding costs. You just bird dog your leads and sell the house as fast as you can. Someone else can deal with the contractor. You’ve got another house to buy. That’s the mindset I brought when I started wholesaling real estate in New Jersey. Let me get you in on how to do it yourself.
NJ Wholesaling Real Estate Essentials
You need three things to make a living wholesaling real estate in New Jersey: leads, capital, and buyers. That’s the basic setup—without them, you’re not in business. That also means that anyone actually in the wholesaling business already has access to all three. The competition’s in this race, too, and they started running last night. You are already behind, especially in New Jersey’s up and coming neighborhoods.
The best way to compete in wholesaling is to get your basic system in order. Finding one lead and chasing it down is well and good, but it doesn’t really matter if you don’t have the next NJ distressed property lined up. Literally, they should be in a line, marching down a spreadsheet on your computer. The margins in wholesaling are slimmer than they are in standard fix-and-flip properties because this is a volume business. The faster you’re able to move through deals, the better you’ll do.
That doesn’t mean you have to be running down the block trying to beat your rival to an appointment. Believe it or not, being fast isn’t about taking the most steps; it’s about taking as few steps as possible. Try to find the easiest way to make every deal. Find the most consistent source of leads and schedule regular time to follow up. This first step is the most important; a wholesaler without leads is retired.
One way to get leads is the New Jersey foreclosure market. Claim to fame or claim to shame, New Jersey still tops the nation for foreclosure rates. If you can reliably close on deals before the other investors scanning the foreclosure listings do, you’ll be in a good position. Of course, to do that, you’ll need capital.
Specifically, you’ll need liquid capital that you’re able to deploy on short notice because you have to actually purchase the property—you’re not just buying the right to own here. So, you’ll need enough to at least make the down payment. The Garden State also requires that the sale goes through a homeowner’s attorney and, since you’re buying from a distressed homeowner, you’ll probably need to cover their attorney’s fee, too. On your end, you may want to consult a local legal expert to make sure your wholesaling contract meets all local, state, and federal requirements. And, make sure you have enough to cover yourself if you’re not able to move the property right away.
To get steady wholesaling money, you need a system. Cash for one house is good, but you can’t be calling your cousin every week for a new loan. If you’re an heir to a vast fortune, great, but otherwise, check out the local hard money lenders. These short-term lenders accept property as collateral, giving you access to fast capital you can use to quickly follow up on promising leads. If you’re wholesaling, your local hard money lenders should be on quick-dial in your phone; you’ll want to be able to talk to them frequently to close new deals.
Finally, you need buyers. It’s not a good idea to buy houses unless you’re confident that you can sell them. In the wholesale market, you’re looking to sell to other investors. You need a list of investors who you can offer all your new properties to. Give preference to the ones who buy consistently to keep them coming back. The faster you can sell your properties, the quicker you’re off the hook for holding costs like interest and tax. The quicker you get your percentage, too.
That’s your system. So, where in NJ can you find constant access to real estate leads, capital, and buyers?
Developing a Tried-and-true Wholesaling System for NJ Real Estate
Becoming an independently owned and operated HomeVestors® franchisee gave me access to the leads, capital, and buyers I needed to make wholesale deals consistently. Because of HomeVestors®’ nationally-known and trusted “We Buy Ugly HousesⓇ” marketing, distressed homeowners call me before they get tangled up in a foreclosure and their house goes up for auction. People call when they’re serious about selling— this strategy has allowed me to get qualified leads before my competition. That’s fast.
On top of that, I now have a network of hard money lenders that became more willing to work with me once I became a HomeVestors® franchisee—they trusted my training and reputation. All I have to do is punch in the deal on my iPad and I get hard money offers rolling in. You can’t get this service any faster.
Best yet, as soon as I close the deal, I can reach out to the other investors in the HomeVestors® network—and beyond—to sell it. Posting the property on the DealVestors®TM website allows me to reach other investors nationwide. It frees me up to wholesale as many houses as I find. It helps other investors outside of the HomeVestors® franchise network by saving them the time it takes to find qualified leads, so they can get right to renovating.
Ready to learn more about how to start real estate wholesaling in New Jersey? Contact HomeVestors® today to start seeing the qualified leads you need, fast!
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