What are the most common myths about Real Estate wholesaling that need debunking?
Real estate wholesaling represents a very innovative approach to a transaction involving properties that has attracted investors' attention. At the same time, several myths revolve around this investment strategy. That is why it is time for Faubourg Treme Holdings LLC, an organization that specializes in real estate wholesaling, to dispel some of these myths. Below, we debunk some of the most common myths about real estate wholesaling to give you a better understanding of this strategic investment model.
Myth 1: Wholesale Real Estate is Illegal
Some of the biggest myths are based on the assumption that real estate wholesaling exists in a legal gray area-or worse, is even illegal. Reality check? Real estate wholesaling is completely legal if you're following the real estate laws and regulations in your state. All contracts are fully compliant at Faubourg Treme Holdings LLC, creating a clear, transparent, and ethical process from start to finish. Wholesaling is essentially a process of securing a contract on a piece of property, assigning that contract to an end buyer, and making a profit; it is the strategic investment in real estate without having to necessarily own the property itself.
Myth 2: You Need a Lot of Money to Start Wholesaling
This is a very common misconception-in theory, it's what's required to get started in real estate wholesaling, large upfront funds of money. Indeed, wholesaling is probably the only real estate strategy where considerable capital is almost completely unnecessary. You, as a wholesaler, are a middleman-seller: You get properties under contract and then assign those contracts to an end buyer. The capital used here is oftentimes merely a marketing expense and sometimes an earnest money deposit, which in itself, is usually quite minimal. A fact of Faubourg Treme Holdings LLC is that we assist our clients and make the process available and accessible to anyone-to help come to the decision that one is ready to undertake.
Myth 3: Wholesalers Need to Be Licensed Real Estate Agents
Actually, it has its benefits on certain occasions, but having a real estate license isn't necessary to wholesale real estate. Wholesaling is assigning contracts rather than a brokerage of deals. At Faubourg Treme Holdings LLC, our company has made hundreds of transactions in real estate, making the process smooth without necessarily requiring licensure. However, we always recommend understanding the rules may be necessary in your specific state or market.
Myth 4: Wholesaling is Flipping
Many people confuse wholesaling real estate with flipping. These are two different business strategies. Wholesaling is to obtain contracts for properties first and then sell them off to end-buyers without repairing them and holding them long-term. Flipping involves buying a property, repairing it, then selling it; therefore, it is much more time-consuming and labor-intensive as well as capital-intensive. At Faubourg Treme Holdings LLC, we make it our hallmark to simplify the transaction process for our clients by moving their properties quickly and efficiently.
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Myth 5: Wholesaling only pertains to distressed properties
While it is true that most wholesalers focus on distressed properties because of their low prices and motivated sellers, the real estate wholesaling business does not only pertain to this niche. Wholesaling can apply to any type of property, from residential building to vacant land depending on the condition of the market and demand for buyers. What makes Faubourg Treme Holdings LLC very unique is that we deal with an array of types of properties: houses, land, you name it, to make sure that our clients have a lot to choose from.
Myth 6: It's Easy Money
Real estate wholesaling is nothing but a fast track to easy money, just another myth that needs to be debunked. Yes, wholesaling can be profitable, but it takes a lot of hard work to do good networking, have market knowledge, and have due diligence. It involves investing time in building relationships with sellers, buyers, and investors as well as keeping up-to-date on market trends. At Faubourg Treme Holdings LLC, we use our experience and strategic insights to help clients succeed but make clear that wholesaling is a business that requires dedication.
Real Estate Wholesaling as an Investment Tool
At Faubourg Treme Holdings LLC, we believe that real estate wholesaling acts as a powerful tool for investors trying to diversify their portfolios while still engaging in property market investment without huge capital or renovations. Kill these common myths, and we'll be able to understand wholesaling much better and see how it remains a viable legal investment strategy. Whether you're just getting into real estate or have been an investor for years, our team is here to help guide you to investing success with wholesaling.
Faubourg Treme Holdings LLC is a real estate wholesaler. We can present strategic solutions for transactions in and around real estate property. We source residential structures and other land properties under contract and then assign those to end buyers – people who will own, occupy, or develop the property.
If you would like to learn more about wholesaling real estate or see some potential investment opportunities, we would be happy for you to get in touch with us. Let's see what's there!
Give us a call 984.266.7811?
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