Creating a Successful Online Wholesaling Venture

Historically wholesaling was an extremely personal business, heavy on relationships and in-person contact. The internet has changed much of this dynamic as business priorities shift to real-time supply and 24/7 availability. A successful online wholesaler needs a sharp business sense, organizational skill, and intuition to be successful. Here are the key activities for creating a successful venture.

The first step is to decide on what products one wants to sell or which industry to serve. Many successful wholesalers launch their business with a product or material they have experience sourcing. If one doesn’t have a particular area of expertise, do some research to identify up and coming products or ones with upside potential.

Next is to check to see what potential licenses or permits are required for one’s business. The government has an online resource for businesses called Business Link which provides valuable resources.

After establishing the framework for one’s business, suppliers need to be developed and secured. This is another area where the internet has radically changed the wholesale business. Depending on the product or material one has chosen to wholesale, suppliers from across the globe can be sourced.

Armed with the list of potential suppliers, one will need to initiate contact to establish business relationships. This is one of the most crucial steps in the process as the supplier needs to provide quality products (or materials), sell at a good price and be reliable. This is where negotiating skills come into play to secure the lowest possible cost.

Depending on the product, one must decide on whether to have orders drop-shipped or take delivery and coordinate delivery on one’s own. Drop shipping is certainly simpler as no warehouse space is required; however in the case where some grading, inspection, assembly or repackaging is required, a warehouse is required.

Now for the essential element of an online wholesale business: your website. Before beginning to build, do some competitive analysis and see what competitors and other businesses in related industries feature on their site. Clear descriptions and photos are essential, but it might be important to add videos of how a product works or how it is made. Content for the site can often be sourced from one’s suppliers, but it may be necessary to develop your own content too. Be sure the site is architected to be optimized for search so potential customers can easily find your business online.

Once the site is up and ready for business, it’s time for sales and marketing. Just having a web presence will not ensure sales. Even online wholesaling requires direct outreach to potential customers. Every industry has a trade association so look to become active, either virtually or by attending events and trade-shows.

Advantages to a Reverse Mortgage

A reverse mortgage allows those who are 62 years of age or older to cash in on the value accumulated in their current home. The original loan taken to purchase the home must be paid in full, so that no money is owned on the home. This plan allows the owner to receive either a lump sum or monthly payments up to the appraised value of their home. This balance is paid off when the home is sold or when the occupants can no longer live there.

In case you need a visual image to help with this explanation, think of a balloon. With a typical loan, you begin with a full balloon and release air as you make each payment. This type of loan begins as an empty balloon which fills up each time you are paid your monthly payment by the lender.

The amount of money received through this type of payment system is dependent on the ages of the home’s occupants (the older they are, the more money they can receive), the appraised value of the home, the current interest rate, and the amount of upfront cost that need to be taken care of before the loan can be processed. There are very few out of pocket expenses associated with this type of loan since any insurance fees can be paid up front.

The most common type of reverse mortgage is an HECM – Home Equity Conversion Mortgage. It’s given through a private bank, but insured by the U.S. Government Department of Housing and Urban Development. Typically the borrower is charged 1.25% interest from the loan balance each year. This money will be used once the lender is no longer able to make a payment, or if the home doesn’t sell for enough to meet the loan.

Finding a Professional Lender

When you’re looking into a reverse mortgage, you don’t want to get information from the very first banker or loan manager that mentions the option. You’ll want to find a lender who is certified through the National Reverse Mortgage Lenders Association. This organization requires its members to pass some rigorous requirements before they’re allowed to be considered professional lenders. The requirements include:

– No less than two years of experience in this field
– Participation in closing at least 50 reverse mortgages
– At least 12 hours of continuing education courses related to this field
– Successful completion of NRMLA’s Ethics course
– A background check
– A three-hour exam

Once these requirements are completed, the individual is certified for up to three years. After that he will need to take an additional 12 hour of continuing education classes if he wishes to remain certified.