The housing market is hot...prices are up 7% in central Ohio YOY, and that increase creates challenges for investors. If you are a real estate investor looking for "good deal", they may be tough to find on the retail market, usually known as the MLS or Multiple Listing Service. Given the current inflated prices, most of the investment inventory is picked over like a vulture on a dead raccoon. To go a new route, try a property wholesaler. I recently picked up a great investment via this option, and its a deal I would never have found using the MLS or the standard route.

What is a wholesaler? In the property world, this is a company or individual who has secured a contract a buy a home directly from a seller and is "selling" or assigning the contract to another person or company, usually a real estate investor. At closing, the seller gets their money, the investor acquires the property, and the wholesaler gets an assignment fee. This is different from the MLS where a seller lists the home with a broker, puts a sign in the yard, and realtors "show" the home to potential buyers. The seller normally pays the commission % that is usually split with the selling and buying brokerages in the transaction.

Why use a wholesaler? The investor gets an off-market property, normally under retail price such as the MLS, and avoids the retail process. Of course, it's not guaranteed the price will be better with a wholesaler....you could pay more, but that's up to the investor to check and negotiate. Keep in mind; most wholesale deals require the investor to pay cash and close quickly, usually in 2 weeks or less. Also, the buyer needs to do all the due diligence, including inspections and title searches. One other important fact: Wholesalers may not be licensed real estate agents and legally cannot represent sellers in a transaction. A major advantage of using a real estate agent is the agent owes you duties as a client, including loyalty and confidentiality. The duties are the core of ethical responsibilities that all licensed agents must adhere to under Ohio law. When you buy from a wholesaler directly, you may miss out on the benefits licensed agents provide.

Not one buying strategy is for every investor. All investing requires responsible work on the investor's end to be successful. Check out all your options, and do your homework.