For real estate wholesaling to work in Nairobi, there are several strategies you can use. Since the process involves entering a contract with a seller to move house on their behalf, one may think the risk is limited. Wholesalers take on less risk than people who buy a property and then sell it themselves. However, if the process does not succeed, you will be left with an unsatisfied seller and a property in your hands. To avoid that, always take up properties with high demand but a low market value. That way, you can find a lot of potential clients, and you are also likely to make a tidy profit.
Many people are now listing their properties on house websites like Hauzisha. Hauzisha listings for Nairobi contain many houses for sale, some of which can potentially be excellent wholesale properties. However, these homes are likely to be new, with a high market value. If you are looking for a property on such a platform, look at those that have not been remodeled because they are likely to sell below market value.
- Focus on marketing
As straightforward as it sounds, real estate wholesaling requires you to work. Processes like networking and marketing will give you access to potential clients. Remember that the types of properties sold wholesale must be improved before being put on the market again. So, network and work with real estate investors. They have the resources and experiences to enhance the property’s market value and resell it.
- Study any important laws
Next, spend some time learning how the process works. This includes studying the law around these real estate transactions, even if it means getting yourself some legal representation. A lawyer will guide you on how to make legitimate contracts with sellers in a way that does not leave you exposed to legal action. You can also learn the Nairobi City rules about transferring property between parties, considering you will act as a middleman.
- Sell multiple properties at once
One brilliant idea you can use to sell real estate as a whole is to sell it to a single investor. For example, that idea works exceptionally well for those looking to sell a block of apartments. Residential real estate takes up a substantial market share, which is very lucrative. Buying an apartment building can then lease the individual units to different tenants.
. Find the perfect clients.
Another idea is to work with a real estate agent that operates short-term rentals. Vacation stats are viral in Nairobi. They are the perfect alternative for anyone looking to take a break by taking a short vacation. These trips are popularly known as staycations, and many people choose to stay in apartments instead of hotels. You can sell your building to a hospitality company if you are a developer.
- Negotiate in a smart way
An important tip is to ensure you do not negotiate in a way that puts you at a disadvantage. While your primary goal may be finding a property to sell as soon as possible, you must also consider your income. You will be spending money marketing the property, so consider that as you set a price with the seller. Ensure that you can sell the property for more money because that is how you make a profit.
Investing is a great way to channel any additional revenue you have. It is also much less risky than property development or retail selling ventures. There is a lower bar to entry in this area, and you can take advantage of this to start your investment journey. Be sure to use these methods to increase your chances of success.