3 Mistakes You Should Avoid in Real Estate Wholesale

Mistake #1: Not Understanding Your Market

Buying the wrong house or even the right house but in the wrong neighborhood could stick you with a home you can't sell to an investor buyer and that will suck up your profits selling in the retail market. Know that often your most reliable buyer will be a rental property investor. Know the neighborhoods that work for them and that support a strong rental market.

Mistake #2: Not Understanding Your Buyers.

Part of this is knowing the neighborhoods they prefer, as well as the style and type of homes each investor buyer wants. You can't get this information unless you cultivate relationships with buyers and ask for it. Know which neighborhoods your rental property buyers prefer and the size and characteristics of rental homes they like. Build a database and keep up with this information so that you know what type of homes to look for that they'll want to buy..

Mistake #3: Complacency When It Comes to Your Buyer(s)

You get off to a great start, work hard to build a strong buyer database, and you ask them all of the right questions to be sure that you're out there seeking the homes that your buyers will want. After all, doing this will help you to be certain of a sale, even if one buyer decides to pass on a deal. Meeting the needs of several solves that problem, and it can even create competition.Your first half a dozen deals go well, and you're getting into a groove. You're even increasing your activity and doing more deals simultaneously. You may have three or four working at once, taking advantage of smart buying opportunities. The problem may come months down the road when you call up a frequent rental buyer with the deal you just inked and find out that she doesn't want homes in that neighborhood anymore. They've moved their focus to a different area and price range. You can't just build a buyer list then ignore them until you have a potential deal.Stay in touch and update your information.