Wholesaling VS Flipping

[Joel Owens]

I was running through some thoughts last night.

I was thinking do you mainly do flipping,wholesaling or both??

The calculation in my area would be for an average flip about 25k to 30k Gross profit with a 3 month sale point. Up to 1 month for purchase and rehab,2 to 3 weeks to get under contract,4 to 5 weeks to close.

So I am calculating I would need to wholesale 2 deals a month at 5k each to equal the same pace as 1 retail flip in 3 months.The income would be the same but I would have 6 transactions with the wholesaling and paperwork versus 1 for a retail flip.

The plus of the wholesale would be cash buyers that can close in 7 days or less.

I have cash to buy the properties I would wholesale.

Your thoughts.................

[Paul B.]

If you are capable of finding two good deals a month, why not flip six houses a quarter instead of just the one?

Or flip one and wholesale the other five?

My fear with relying on flips for income is that you might have a deal not work out as planned, and then you've wasted your whole quarter on a marginal deal.

If you can really find six solid deals a quarter, I'd try to pursue both flips and wholesaling in parallel. Certainly you're not just letting those other five deals go undone, right?