The Wholesale Real Estate business has been around as long as

people have bought and sold real estate.  In good times and in bad,

there is always money to be made buying real estate at a discount then

selling it for a profit.

 

A true Real Estate Wholesaler purchases real estate as low as

possible and resells it at a higher price to other investors. 

Typically, the investors that purchase from a wholesaler are in either the

retail or rental business. Usually This means that once the investor

purchases the property from the wholesaler, they will make necessary improvements

to the property and then either rent it out, or sell to those who wish to buy a home to live in.

(Retailing - selling for full price to owner occupant)

 

Most Wholesale Investment companies hire what's known as a Property

Locator to identify, locate, evaluate, and secure discounted real estate.

Once the Property Locator secures a deal that meets the investors buying

criteria, the investor quickly purchases and resells the property for

more than what he/she paid.

 

Real estate agents and brokers who work with investor buyers are

essentially licensed property locators. A property locator who does research for a

private investor buyer does not have to be licensed.

 

While licensed agents and brokers can prepare contracts, negotiate on behalf

of their investor client, and provide other expert services, the

unlicensed property locator is not representing an investor or writing offers

for the investor.

 

They are merely researching property data, evaluating the property for its

profit potential, then passing the information along to the buyer, who will make their own decision

about what to offer, and will usually write their own offer.

 

Appraisers, attorneys, inspectors, contractors and other real estate

support services professionals may also locate and refer properties to

investors from time to time, as a result of their normal business activities. 

 

Investment companies often employ unlicensed property locators to

help them find and research more potential deals. When an unlicensed property

locator works for an investment company, the company provides the funding

and negotiates the deals found by their locators.

 

Agents and brokers also locate properties for investor clients.

Real Estate Arena members include both licensed and unlicensed individuals.

The real estate investing business covers a wide range of operations, and

The Real Estate Arena wants to welcome everyone, and help

everyone understand how they can earn income in an industry that

offers a myriad of different opportunities for financial success.

 

When a real estate transaction takes place, commissions are

generally paid in one of two ways. 

The unlicensed Property Locator is paid by the investor buyer to

whom they provided the deal information. Unlicensed locators should agree

with their investor buyer up front, as to whether their fee for locating

a property will be a flat fee, or a percentage of the investors net profit.

 

If the fee is a flat fee to be paid right after closing, the

locator will receive their money faster. If the fee is to be a percentage

of the investors net profit from reselling the property,

the locator will be paid only after the property has been fixed and

resold. This may result in a higher fee, but the locator has to wait

longer to get it.

 

Flat Fees for unlicensed locators range from $500 and up, and

average about $1000 to $5000.

Generally the higher the potential profit spread, the more an

investor will pay. Fees for better locators can be as high as 20 or 30%

of net profit. Obviously the better the locator is at

finding great investment opportunties, the more valuable they are.

The most accurate property locators command the best fees and may perform

property research for investors with millions of dollars to invest.

 

Flat fees are usually paid by the investor buyer to the property

locator within three business days of closing. If the locator will get

paid a percentage of profit based on the resale of the

property, they may make more, but the paycheck will not be due

until the property sale is completed.

 

Agents and brokers can charge a fee for buyer agency, in addition

to collecting commissions for sales of listed investment properties.

Since agents and brokers already have access to

contracts that cover agreements for both selling properties and

working with buyers via buyer agency, they can provide a range of services

for investor buyers.

 

When agents and brokers become members of The Real Estate Arena,

they also have the opportunity to join our nationwide broker referral

network. Since the Real Estate Arena operations are based in Atlanta, GA,

we use a local Georgia brokerage to assist our agent and broker

members with referrals within our nationwide network of licensed

professionals.

 

The Real Estate Arena offers professional grade, web-based training

in the art of evaluating properties for their investment potential.

Members enjoy 24X7 access to a library of training

materials on every aspect of real estate investing, including short

sales, foreclosures, REO's rehabbing properties, creative financing and more.

 

In addition, the training also includes audio lectures and video tutorials.

This is not your typical "guru" seminar with a high price tag,

members enjoy access to all the training materials at any time.

 

There are no hidden charges and no high priced seminars to buy.

New training sessions are provided weekly.

 

Members also get a "Virtual Office" which provides them with access

to their own weblog, web page, our property listing system, 24X7 Training Library,

The Real Estate Investors Guide to Buying Right, the TREA message board,

where you can communicate with real estate buyers

sellers, locators and support professionals like lenders,

contractors and appraisers.

 

Click the link below and expand your opportunities as a member of

the Real Estate Arena.

 

https://www.therealestatearena.com/regl.aspx?i=blog