Why I’d Rather Be a Wholesaler Over a Fix & Flipper or Buy & Holder Any Day

by | BiggerPockets.com

Before people go crazy and start crucifying me in the comments section, hear me out:

I am not saying that being a real estate rehabber or a buy-and-hold investor is bad, stupid, or doesn’t work.

The fact is you guys are my valued customers, and I love that these strategies work for you.

My goal in today’s post is to simply explain the reason why I’ve chosen to wholesale and to show those new and trying to figure out what route to take in real estate why they might consider it as well.

Unfortunately, wholesaling gets a pretty bad rap, and I think it’s a shame because if it is done well, wholesaling can be an incredible business model.

When I first got started in real estate, like most people, I didn’t have a lot of money. I even remember one time, I was on a date, and my debit card was declined because my account was overdrawn. Embarrassingly, my date had to pay for our meal. So believe me when I say I know what it feels like to be dead broke!

Back then, I had never heard the term “wholesaling” before. I just called it the “buying a house and selling it fast without doing any rehab because I don’t have much money” strategy. I thought I would do this until I built enough capital to become a “real” investor, which in my mind was a fix-n-flipper, as that is what I saw people do on TV.

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My Story

I bought my first property with only $5,000 (matched with my dad at an additional $5,000) and sold it to another investor because I couldn’t feasibly flip it on my own. During the following three years, I did pretty much the exact same deal over and over again (in terms of numbers). I was doing a lot of volume because my goal was to make enough to transition to flipping houses.

Once I had gained enough experience (and enough working capital), I decided to “graduate” and become a full-time fix-and-flipper! Yay, I had finally made it to the big time. I was going from the little league straight to the pros. I was extremely excited!

Related: What All Newbies Should Consider BEFORE Choosing a Real Estate Niche

Now, I’ll be honest, I had no clue about anything related to contractor work, but to me, wholesaling was a kid’s game, and I wanted to make it “big” as a flipper.

So I become that guy. Every day I’d wake up at 6 a.m. and head over to Home Depot to pick out our supplies for the day. I handled several different projects all at the same time. I remember at first, it was great, but after a while it started to become a lot to handle.

I remember at some point, I told myself I felt like an ATM, handing out $100 over here and $250 over there. Often I’d even have to coordinate a “personal delivery” with contractors to pay them cash because a lot of them didn’t even have a bank account.

It’s very typical to have rehab numbers that end up being way off, and so I remember feeling frustrated that my profit margins were always smaller than what I had originally planned. On top of all of that, most of the time, my contractors would be late in finishing the project, subtracting more from my bottom line. A couple of times, I had contractors flat out rip me off and take money for a job and skip town!

So, needless to say, a couple of years into being a fix-n-flipper, I started to question the wisdom behind this “real” investor’s game. Once I started to analyze how much revenue I was generating from my fix-and-flip business, to my shock, I realized I was actually making more money when I was a wholesaler!

So, I asked myself, “Why deal with all the stress and headache of being a flipper? I can make just as much (if not more) finding great deals and simply selling them as is!”

Do You Want a Quick Nickel or a Slow Dime?

There is a funny saying that I’ve heard a lot of real estate investors use that goes like this: “A quick nickel beats a slow dime.”

The point being made here is that a smaller return is better in the long run if you can make it in a shorter amount of time. If I tell you, “Hey listen! I’ll give you $1,000 to run a 100-meter dash, or if you can run one mile, I’ll give you $2,000,” at first, $2,000 sounds like a lot of money! Just going one mile will get you 100% higher of a return. That’s awesome, right?

Well… not exactly.

There are about 1,609 meters in one mile. If you divide that by 100, that’s about 16 times you could have made that $1,000 if you had chosen the shorter distance! So which is better: $2,000 or $16,000? Obviously the $16,000!

For me, wholesaling has been a lot like making that $1,000 per 100 meters.

In wholesaling, I can make a lot more running the short distances, just as long as I run those distances several times. Whereas with flipping, it’s a lot more like running mile after mile, which can totally wear you out! I know that fix-n-flipping is not as slow of a dime as buy-and-hold, but it’s still a lot slower of a dime than wholesaling.

When I was flipping houses, what would start off looking like a $2,000 mile would end up slowly turning into a $1,200 mile (or less) due to unforeseen expenses like holding costs, maintenance, delayed timelines, inspection responses, and the list goes on. Typically I’d end up running that mile with all my might, only to gain about the same as if I were to save my effort and simply run the 100 meters!

This is the reason, I decided to stick with wholesaling; flipping was a whole lot more stressful.

And I made more with wholesaling, doing less.

Now, when it comes to buy-and-hold investing, typically the mindset behind it is: “In 5 years I want to build up $10,000 in residual income per month.” This sounds amazing, doesn’t it?

Finding What You Enjoy Doing

If you’re smart with your money today, over time you’ll be able just to sit around and do nothing except collect rent checks. Well, I hate to burst your bubble, but this isn’t the reality of it. As a buy-n-hold investor, you will still have to work; you’ll have to manage all your properties and the tenants within them!

Even if you work with a property management company, in most cases, you end up having to manage your property manager–and that’s not really all that fun to me. Also, it can take years to get the kind of down payment needed to get into a good rental property, and it can be unwise to have a lot of debts. The more leverage (loans) you have, the higher your risk is. If you’re over-leveraged and one thing goes wrong, your entire business model could come crumbling down!

Related: Buy & Hold Real Estate is the Ideal Investment: Here Are the Numbers to Prove It

Plus, with the headaches I’ve had dealing with evictions and tenants, it just wasn’t the strategy for me. When I see someone with a goal to make $10,000 in residual income long-term, I like to take them by the hand and show them how they can make that $10,000 this month. And sometimes in one deal!

Personally, the saying is very true for me: I’d rather make a quick nickel over a slow dime. You see, working in real estate for as long as I have has taught me very well what I like and don’t like about this business. I don’t like managing contractors; I don’t like swinging a hammer or having to wake up at six in the morning to go to Home Depot. I don’t like having to fuss with making sure rent is paid on time, dealing with toilet issues at 3 a.m., or dealing with the painful process of an eviction.

But what I do like is the chase. I love finding the deal!

Growing up, my grandfather was a bona fide picker. Every time we went for a visit, I remember going to several different flea markets and garage sales, always on the hunt for the next steal-of-a-deal. Those were some of my favorite memories, and I think the love for that carried over into real estate. Instead of waiting to grow wealth or dealing with the headache of rehab projects or tenants, I’d simply rather get paid to find great deals for people.

This is just my personal preference, and there is a lot of room for people to disagree and have their own likes and dislikes in real estate.

(What’s are some of yours by the way? Let me know in the comments section below!)

The point here is that wholesaling, when done well, is a very profitable and lifestyle-friendly business. It is a great option for newbies trying to figure out their career path, so don’t think that it’s child’s play!

In conclusion, all the fix-n-flippers and buy and hold investors out there, I value you what you do, and I am so glad I can serve you with the properties you guys need for your real estate strategy. But for me, wholesaling is the way to go, and today, I wanted to make a stand that it is a serious and valuable business.

For those looking to use real estate to build long-term wealth, consider wholesaling. It has been very good to me, and I know, if done well, will be very good to you.

Now it’s time for you to weigh in: What is YOUR real estate strategy of choice–and why?

Let’s have a conversation in the comments section below!

About Author

Brett Snodgrass

Brett Snodgrass is a licensed real estate broker and wholesaler who hails from the Indianapolis metro. His mission in life is to glorify God by serving as many people as he can through his real estate business. He has a pretty active community growing on Facebook and is also the founder of SimpleWholesaling.com Come check it out now and connect!


  1. Thanks Brett for this blog! I went to a REIM networking event a couple of weeks ago and had someone tell me how difficult it is to make any money wholesaling. I did my best to smile and not disagree because I am so new in this business. I’m a single 48 year old woman and the only hammer I swing is for a picture in my apartment. I’ve said from the beginning wholesaling is it for me. Now to get in the right track!

    • Brett Snodgrass


      Thanks for the comments. I understand that some people will say that Wholesaling is really difficult, and experience tells me they are correct. But I think that to be good at anything, it all takes a lot of hard work. Wholesaling isn’t difficult in the fact that the “Process” is difficult. People say it’s difficult because It takes a lot of “EFFORT”. If you can delegate a lot of that effort out to other people, you are already on the right track. It sounds like wholesaling can be for you, and I wish you very much success. You will be successful at it, if you follow what other successful wholesalers are doing, and don’t quit. Thanks, Brett

        • Brett Snodgrass

          I would state by Reading the “The Ultimate Beginners Guide to Real Estate Wholesaling” by @Brandon Turner

          If you have any investment meetup groups in your area, I would suggest attending those, and studying the strategy for a few months and finding a mentor in your local area…. Hope this helps. Brett

  2. James Green

    I love this article, even though I still want to get back into the cash flow game. I’m in a very competitive market, but I’m still amazed about how many wholesale properties that are out there. I guess I shouldn’t be amazed. There is a motivated seller born every day.

  3. Years ago I was a Wholesaler although I didn’t really this label fit me. I would find a property, get it under contract and start making calls to people who wanted to buy Fix and Flips. Often the same day I would meet them at one of my convenient office, typically a Dennys Restaurant” and assign the contract for a quick $5,000 in cash passed to me in an envelope. Most deals back then went like this:

    Paid $50,000 for a triplex fully rented and collective earning monthly rent of $1,000 – $1,100.
    Received $5,000 for the Assignment.

    Today, here in Miami, there are more “Wholesalers” than Starbucks and with the invention of software that generates multiple offers, many “Wholesalers” now roll out of bed in the morning, turn on their computer, scope out the new listings on the MLS, feed it to their software that generates offers of 50% of listed price and then go back to bed.

    That’s okay and even fair I guess because it represents “Progress” and evolution but here’s the rub, man=y of these couch potato “Wholesalers” never even see the property but are far from reluctant to add a huge markup when “wholesaling” the property. My latter example of buying for $50,000 and flipping for $55,000 where the property is worth $75,000 – 95,000 are gone. The “Wholesalers” today would mark the property up from $50,000 to $85,000 and tell you all it needs is a little TLC, yeah like two ounces of nitro to blow the building off the lot.

    I am probably on a dozen of more of “Wholesalers” Lists and daily receive red hot deals. I have looked at so many I have lost count (hundreds and hundreds) and to date not one single one is worth the asking price.

    I no longer assign because of the possible problems involved, e.g. my Buyer stalls or backs out etc. My offers are always “All cash” but here’s another rub. Many “Wholesalers” today won’t allow for an inspection or perhaps even a walkthrough because the dump is rented or possessed by naturally unfriendly squatters. And many “Wholesalers” want a large Non-Refundable Earnest Money Deposits like $10,000 on a $100,000 property.

    I guess this works because many of the “Wholesalers” I receive emails from still send them BUT often the list that once had “Red Hot Deals” are now marked down dramatically and maybe even a second time a few weeks later.

    I guess my point is few, if any, “Wholesalers” are satisfied with a quick one day turnover and $5,000 profit. No, today they want the whole enchilada and where does that leave the Fox and Flip Buyer?

    • Brett Snodgrass

      @Tom Phelan,

      Thank you so much for your comments. I really appreciate your insight “From the investor looking at wholesale deals”. I think that you should write an article about this, or do you mind I piggy back off of this a little and write something about this idea?

      I agree 100% with you, as I am on a lot of wholesaler’s lists as well, and I see the same thing. I will say that I am not perfect when pricing deals, but I always try to put myself in the Ivestor Buyer’s shoes. I often ask myself, “If I were ix-n-flipper, or a buy-n-hold investor, would I buy this deal at the price I have it marked?” If the answer is yes, then I know I have priced it well.

      I think all wholesalers should ask themselves “Would you buy your own dals at the prices you have them listed?” It should almost be hard for a wholesaler to sell at the price they are asking, because it’s that good of a deal…

      Unlike many of the wholesalers that you have seen, I may be old fashioned, but I feed my family from those $3000-$5,000 Wholesale deals. I just sold 2 this past week, where we made $3,000 on one and $3600 on the other. We do from time to time make a lot more than that on a deal, but it’s only because we got a GREAT DEAL, and there was that much margin for the end investor to still make a lot on it?

      Thanks again for the comments, and I love this concept.


      • Brett,

        Move on over, what city do you live in?

        When I was a wholesaler in Colorado and Wyoming because I offered nice deals that left a lot of fat on the bone most of my properties were sold the same day I acquired because I had a list of eager investors who knew my deals were good deals. There was plenty of room for repairs including a cushion and carrying costs and a Realtor’s commission. Also all of the properties represented at least 1% rental factor, e.g. if the property after repairs was $100,000 the existing rents before repairs was $1,000 monthly.

  4. James Green

    @Tom Phelan in my market, the cash buyers I deal with don’t want MLS properties!!! Most of them work with realtors also or are have their own license. They want true off-market properties. I really try to get properties close to 60% just in case my repairs estimates are really off.

    • James,

      Good points but I should have added that the software these bedroom cowboys use also includes “Off Market” and “FSBOs” and “Pre-Foreclosures” and “Short sales” and “REOs” and even “People Underwater”.

        • Vince Mayer

          Hmmmm. It doesn’t seem like you are going to get an answer! I don’t think there is any but I don’t think Tom was saying that there is software that finds off market properties that you can buy at 50% of value. I think he was saying that guys use software that cranks out offers at 50% of listed price.

        • Exactly, I never said I knew of a software that found 50% deals, if I did I would sell it for huge bucks.

          I said there is a software that some wholesalers use that will crank out 50% Offers on all new MLS listings.

        • Thanks for the clarification, Brett.

          I have been wholesaling with limited success in the Milwaukee, WI market. Honestly, the market is saturated with wholesalers and I am in a slump. I like the wholesaling niche but I am looking for tips on how to produce leads of off -market discounted properties. I am not a fan off the yellow letters or the signs. I am looking for something more automated that maybe I can subscribe to bring in leads. That is why I was inquiring about the software.

          Are you aware of a source or process that may help me?

  5. Tommy DeSalvo

    I call myself a buy and hold investor, because that’s what I do and that’s my long term business plan. I’m one of those people that have a 5-10 year plan of (not 10k/month) 3-5k passive income a month. And yes, I will eventually have to deal with property managers and such, but I want to enjoy more free time sooner rather than later.

    That was a rather long winded paragraph to ask what is your exit strategy? You have to work everyday, and will continue to do so until…? Will you keep doing this until you retire on your savings/401k/Roth/ ? How old will you be? If what you want to do in life is wholesale, and you enjoy it enough to do it for the next X years, cool. Some people find purpose in work.

    I just think there should come a point where I don’t have to look for the next deal. The next flip. The next problem. I want to leverage my way into a few big units, with a great property management team (which will take work to fine), but then I want to just forget about it except for a few hours a month where I check up on things. I guess I view wholesaling and fix-n-flips as careers or short-term money makers, but I don’t see them as doing the two things I want from real estate: Wealth building and freedom of time.

    • Tommy,

      I agree with you, unless you are into the pain that wholesaling demands and you want to enjoy life before it it too late, the question becomes “How do I get off this hamster wheel but still maintain a respectable income?”

      Great question and here is an odd, rarely used technique used by some who look outside of the box. This investment is ideal for a Self-Directed IRA and or Individual 401(k) as well or a combination of personal funds and IRA funds.

      Garage parking spaces. Yes, that’s what I said. Many pre-construction Condos and already established Condos sell parking spaces. Yes, some have HOA restrictions etc. but not all. If you paid $25,000 for a parking space and rented it for $250 monthly, that’s not a bad return and you surely don’t have to worry about maintenance, damage of someone absconding with your property. As Condo prices rise so will the value of the parking space and the monthly income it generates.

      I have even employed this approach to boat slips where I own the slip and a boater pays me to park his/her vessel.

    • Brett Snodgrass

      Thanks for the comments Tommy,

      I understand what you are saying and that you have the buy-n-hold investor mentality. I truly understand that, and I love that because I sell a lot of properties to Buy-n-hold investors. I was just writing this Blog to relate to people who are interested in wholesaling, finding deals, and wanting to make a quick nickel rather than a slow dime. So if a wholesaler could make 10K per month for the next 5 years, and they saved a lot of that, then at that point, they would have some options. I have thought about it a lot for myself, and I think my idea would be in Private Lending to other investors and be more hands off once I built enough liquid Capital. That way I could enjoy the freedom of time. I guess my point was wholesaling can be a vehicle that can create wealth very quickly, “liquid wealth”. Everyone has their opinion on this, and I am so glad that there is a such a big arena where wholesalers, buy-n-hold investors, and fix-n-flippers can all fit and be successful. It just depends on your mentality, Quick Nickel or a Slow Residual Dime… I choose the Nickel, but there is nothing wrong with a slow Dime. They both can win…


      • Brett,

        Actually I was a wholesaler unless I snapped up a steal that I would fix, rent and hold for a year to be able to 1031 Exchange into another property.

        I guess I left out the good part, as my frequency of sales occurred my clientele increased including the amount they would invest.

        One of my last deals merits a bit of a story. Because my wife and often used a particular Realtor who was savvy with numbers, he told us one day about a 14 unit Apartment house that one of his associates had sold as a fixer upper. A couple had bought it and were almost done with the renovations and would soon list it with her. The selling price, rents, expenses etc. made it a screaming deal so a Purchase Contract was completed along with a handsome Earnest Money deposit. Two days later while at the weekly sale’s meeting the agent revealed her latest list, the 14 unit apartment. When she finished her description etc. my Realtor stood up and softly said, “Sold” and handed her the paperwork.

        The deal, purchase price $269,000. 100% occupancy and monthly rents of $4,100. To put frosting on the cake, this apartment was the premier building in town with many long term tenants including an on-site PM who also worked as the local Police Dispatcher (don’t you love it?) We sold it the same day for $310,000 all cash.

        When the Listing Agent asked our Realtor what the property sold for he replied, “You don’t want to know”.

  6. Mike McKinzie

    I am glad that wholesaling works for you and it can be quite profitable. But let me ask one question: If you were to die today, how much would your business make tomorrow, next month, next year? My business would go on exactly the same if I were removed from the equation. Now that is passive income! Plus, I have never seen 80% of my properties! I was in Russia when one of my Section 8 property inspections failed. My PM took care of it while we were enjoying St. Petersburg! You work, I play, but if we are both happy, what we do works for both of us!

    • Brett Snodgrass

      Thanks for Comments Mike,

      If I were to Die today, I guess my Wife and kids would get the large life insurance policy:) I understand what you are saying about residual income and not having to be in the business in order to make $. I just wrote a blog last week about Building a good TEAM in your wholesaling business. I guess that would be like Your “Property Management”, and we have a good Management Team in order to take the work from me so I can enjoy the life as you do.

      Can I ask you a quick question though? When you bought your first rental properties, How did you buy those, and were you already well off financially? The only reason why I ask that is that most of the people I talk to don’t have a bunch of $ to buy a lot of rentals right now, so I tell them about the Quick nickel strategy. I am glad that there is room for both… Because like I said, without Buy-n-Hold investors, I wouldn’t have any “Buyers”. Thanks again Mike.

      • Vince Mayer

        If you were to die today there would be a lot of fix and flippers and buy and hold investors looking for a good wholesaler.
        I have to laugh when I read forum comments or responses to blog postings like this that denigrate wholesaling like it’s an inferior endeavor. If a wholesaler just throws out 50% offers on a lot of properties listed on the MLS he won’t be in business long because agents won’t deal with him and he won’t have any off market properties if he’s not spending money on marketing.
        I don’t know why so many people think wholesalers can never retire. What do they think were doing with the money we’re making, flushing it down the toilet?

        • Vince,

          I don’t think most of us are bashing “Wholesalers” rather commenting about our experiences. I would love to find a wholesaler whose list contained appropriately “wholesale” priced properties yet the fact is I have looked at hundreds of “wholesale” priced properties that were worth about 50% of the price being offered.

          Regarding wholesalers” who crank out software generated 50% of Listing Price offers, a Realtor has no choice but to submit the offer to the property owner. It’s not the Realtor’s option to preemptively not present an offer and if a Realtor does so he/she could lose his/her license. Although I disdain the method I see how the software approach can work because out of hundreds of offers dispatched each week a few might catch the attention of a super motivated Seller to come back at 70%, 80% or even 90% of the asking price and as they save, “Let the horse race begin”.

        • Will someone please share what software is generating leads on discounted properties?? I have asked a few times on this blog. Thanks.

  7. karen rittenhouse

    Hi Brett:

    I agree! We love wholesaling and currently buy about 8 properties per month and sell about 6 of them. Some we put tenants in for ongoing cashflow and, when there is a ton of equity in a rehab, we rehab and retail sell.

    Love the mix because we are flexible in any economy. Also, our holds (which are managed by someone else) give us TREMENDOUS

  8. karen rittenhouse

    Oops, sent too soon!
    Our holds give us TREMENDOUS profit potential without tax consequence. A downside to wholesaling only is Uncle Sam takes a large part of your reward.

    Thanks for the great article. Your perspective is quite valuable – for that piece of the investing story!

    • Brett Snodgrass

      Thanks Karen,

      I enjoyed your comments, and I will take that to heart. I agree with 100%. I like your comment about Uncle Sam, and the rentals can definitely help with taxes. You are doing quite well, and I wish very much continued success!


    • Lenzy Ruffin

      Your exit strategy blend is exactly what I aspire to, Karen. And I’m confident I’ll get there because I’m doing exactly what you said to do as far as running a direct mail campaign in podcast 2. I haven’t closed any deals yet, but I do have absentee owners calling me now and I’m making offers, so it’s just a matter of time. I’m going to figure out an efficient probate lead process for my area and crank up a marketing machine on that, too.

      Thank you so much for teaching new people how to do direct mail and, more importantly, when to expect to see results from it.

  9. To be honest I’m not a big fan of wholesalers. Their are no regulations or barriers to entry so most of the ones I come in contact at least have little idea of what a deal even looks like. They are more or less like blind squirrels looking for a nut.

    Once in awhile said squirrels find a rock and think its a nut, no a house for $175k that I can sell after some rehab($20k really) for maybe $210k is not a deal, and I shouldn’t have to explain to them why that’s the case.

    • Chris,

      You make some good points and it underscores the dynamic when a wholesaler does find a suitable deal but he/she wants to price the deal at 75% of ARV where the repairs represent 15% – 20% and there could be a 6% sale’s commission. Suddenly 75% + 15% + 6% = 96%. Where’s the beef (spread)?

      If more wholesalers realized that a quick wholesale flip (how about one day) to a Fix and Flipper for $5,000 or $10,000 profit represents a pretty good deal. And the wholesaler should also realize that the above 75% + 15% + 6% = 96% is the reason the a wholesaler must reduce the price, maybe more than once over a period of weeks.

      I have a question for this group, how many of you have encountered receiving by email a wholesale deal from multiple wholesalers for the exact same property but with different prices? And add to this when you search the MLS the exact same property is “Active” for perhaps even a higher price.

      • Brett Snodgrass

        Thanks for your comments Tom,

        To answer your last question, Yes, I have other wholesaler take “My Properties” and send them out to their lists when they have no business doing that. This is a very annoying habit, and is illegal as they don’t have any interest in the property. I am not sure where they learned this technique from, but I think that has to stop, and they should be turned in to stop this bad habit as it gives a bad name.

        I sent out one property last month, and another wholesaler, Whom I don’t know, sent it to one of my investors marked up 20K. This is very bad form… thanks for pointing that out. Or when marking it up higher than the MLS Price is again not a good idea. If we buy a HUD home that is listed on the MLS, we always try to list it far below what it’s listed at on the MLS… Thanks again.


        • Brett,

          When I mentioned the property being on the MLS, the MLS price was higher thus it makes me wonder how can that be? MLS laws dictate (agreed many Realtors do not follow) that when a property is sold this new status must appear on the MLS with 24 – 48 hours.

          Before I get in my car to preview a wholesale deal I always check the MLS. If I see the property listed as “A” or Active then I must assume the wholesaler is not telling the truth and does not have the property locked up or he/she has a side deal with the Realtor. Why? Because if the MLS price is $100,000 and the wholesale price is $90,000 offered by a wholesaler and you agree to that price, wouldn’t the wholesaler have to get the Listing Agent to go to the owners for a price reduction? And if so where do the Realtor’s commissions come from?
          How does the saying go, “There’s a skunk in the woodpile”.

    • Brett Snodgrass

      Thank for you comments Chris,

      I agree with you 100%, and I am actually not a Fan of Most Wholesalers either… I am a fan of Good Wholesalers though, and I know there are a lot of wholesalers out there that give us a bad name…. But, I think that a “Good Wholesaler” can be a Great Asset to an investor. When a fix-n-flip investor thinks about their team…. I think they should consider a CPA, Contractor, Attorney, Agent, and a “Good Wholesaler”. I do think that most wholesalers aren’t very good, but a “Good One” that brings good deals can be an asset. I hope that someday you do find one, and will help your business. Thanks again for the comments. Brett

  10. Bryan O.

    Great article and it’s nice to see someone who enjoys wholesaling. The issue I see is that you contrast 2 jobs and 1 investing strategy. They aren’t the same type of income. One is building money and the other is building wealth. While I think it’s awesome that you have your strategy I wonder what your strategy is for building wealth? It sounds like maybe that is by building a systematized business that you can step out of.

    • Brett Snodgrass

      Awesome comment, yes I believe that building a team, and a system is how you can be wholesaler and build wealth, and training your team to work in your business while I am thinking of ideas to grow more and working on my business. Thanks for the comment


  11. Chris Field

    Thanks for the comments.

    I have just been frustrated in the past few months because I now have to bid against these guys on real deals and they drive the prices up. Since the market is improving all these guys who were not around a year or two ago are coming in.

    • Brett Snodgrass

      I understand, sometimes there can be ups and downs… just stay the course, and maybe look for different ways you can improve. Always be thinking about “How can I make my business better”. This is what I start thinking about when the deals aren’t coming my way.. Thanks again.


  12. David Mincey

    Personally, I think this is great article. You’ve done what real investors do and that’s FIND YOUR NICHE! I personally know very successful investors who don’t like wholesaling but love rentals, rehabbbing, lending, etc. That’s the beauty of real estate. It’s so vast that all we need to do is find our niche and do what’s conducive to our lifestyle!

    Happy investing!

    • Brett Snodgrass

      I would start with:

      “The Ultimate Beginners Guide to Real Estate Wholesaling” by @Brandon Turner
      You can search for it on BP.

      I also like “Reverse Wholesaling” by Kent Clothier

      I am coming out with a free e-book Titled “The Basic Simple Wholesaling System” I can share it when it’s complete in a month.

      These are the ones that I would recommend to read to get started.

  13. John,

    I know you didn’t ask me but there are a zillion books on “Wholesaling” so the questions becomes which books are the best.

    I recommend one I used many a time to do many a deal, google Ron LeGrand and get his book (not his course) on wholesaling. You may find it on EBay at a reduced price.

  14. Rochelle Ray

    Brett, if I may input a few thoughts here. As I’ve read through all the comments put on here and you’ve obviously hit on a much needed topic, these things ran through my mind: It only takes a few bad apples to ruin the whole batch. I’ve been hearing that there are a bunch of greedy investors out there but that doesn’t make us all greedy. If a fix-n-flip or even hold gets presented with a good deal from a wholesaler then grab it, but if it is a bad deal, pass on it and learn over time who to do business with. This is a people business more than anything. You build your team network. If someone keeps bringing you greedy deals and you can’t communicate to them to quite the high fees or the them being lazy and doing their job on finding the good deals, then tell them your not taking their calls anymore and block them. But I highly encourage all those reading here not to ban all wholesalers. They can be a very valuable tool and save you much time looking for those good deals. A deal is a deal no matter who finds it.

    Secondly point is one of the things I love about real estate. It is like America. We have the freedom to enjoy our differences and not agree. You like to stick with wholesaling only, some like fix-n-flips and some rentals for residual income. I personally have plans to vary with all of it as the market and my needs vary and not put my apples in all one basket. Diversify. To each his own that is what is great about real estate. There is always something for everyone. No right or wrong and always a good deal somewhere if your willing to work hard enough.

    Last point as I tend to get wordy . . . I love your mission in your bio Brett, as it is mine as well! Wish we were in the same market area, would love to meet you. Good luck in your business and all you do!

    • Brett Snodgrass

      Thanks Rochelle,

      I appreciate your comments and your faith. I enjoyed how you worded it. I agree with you. I have heard a lot about how investors don’t like wholesalers and how they run their business. And the Truth is… I really don’t like how most wholesalers run their business as I am the list a bunch of wholesalers, and just think that most don’t bring good deals, and mark them up too much, or just don’t like how they present their deal, etc… But a “Good Wholesaler” can be an asset to any investor. I think diversifying can also be good…. but I think if you have too many things going on, it gets distracting sometimes. I read the “One Thing” by Gary Keller where it talks about finding “Your niche” and sticking to that, keeping it simple and think this can be very true. But I agree that diversifying can be good eventually, especially when you get some $ under your belt and would like to slow down a bit and be more hands off. I am glad that I tried marts part of real estate investing, Buy-n-hold, Flipping, Seller Financing, & wholesaling. That way I know what I like and don’t like… Thanks again.


    Interesting discussion. I’m from Montreal Quebec Canada and at the end of the year when submitting my income tax reports there’s always a big concern on capital gain and the amount the government will take on properties bought and sold when its not your main living address. In fact in Canada, capital gain taxes are based on 50% of the profit made on properties not considered your own residence, this 50% being added on top of your declared income. So at the end of the year that can affect in a big way the small profits you were presenting in the range of one or twice a week the amounts of $2,000. to $4,000. profit per sale. How is this capital gain situation affecting your decisions on establishing your own selling prices or are you mainly selling based on market value and how do you deal with capital gain at the end of the year and still find you’re doing better than fixing it and selling it with its increased equity? thanks, Pierre

    • Brett Snodgrass

      Thanks Pierre,

      I know that my Accountant takes care of a lot of this… but since I have become a “professional real estate wholesaler”. We have set up an S-Corp, in which we have a legitimate business and we buy and sell assets or inventory like any other business. So my profit from all of the wholesale deals since they are short term are taxed at what my tax bracket… is Keep in mind, short-term gains (on assets held for one year or less) are taxed at your ordinary income rate, which can range from 10% to 39.6%. So this is what we do… I am not sure what the laws and such are in Canada? Thanks for the comments.

  16. Daren H.

    Sounds like you like your job, which is a good thing. However, if you don’t go to work, you don’t get paid (unless you put people in place to do it for you on a larger scale). Maybe I missed it, but what do you do with all of the money you make from wholesaling? Do you stick it all in a bank savings account? If so, that is some lazy money 🙂

    • Brett Snodgrass

      Hi Daren,

      Great Question. I have a team and a system that does a lot of the work for me, so I guess that can answer your question on if I don’t work how do I get paid. I just wrote a blog last week about the team… On the $ that we make from wholesaling, I agree with you that sticking it in the bank isn’t the best idea. We actually buy most of the properties that we wholesale, Because many sellers wants to close FAST, so we have to close on them before selling them. So a lot of our $ goes back into the business from Marketing, to keeping a lot of capital on hand to Buy the Properties that we need to buy before we sell them, to my team, etc. I also put some in savings, put the max amount into my children’s 529 college education plans, put the max amount into my Roth IRA (In which I do invest out of in passive income), tithe to my church and give some away, and I enjoy some private lending to help people near me get starting. I do believe in long term investing… I think wholesaling is a great way to build $ quickly in order to have options later. So I love the Quick Nickel, and Don’t think the slow dime is bad… and I use some of excess $ for slow dime strategies as I’ve mentioned.. Thanks again.

      • Brett,

        You mentioned you wisely put some of your money into a SD ROTH IRA.

        Have you ever explored creating an Individual 401(k) with a ROTH Component where you can put
        a lot more money, up to $50,000 into the plan, borrow on the plan and avoid U.B.I.T. if you use Non
        Recourse financing on a property?

  17. Gordon Cuffe

    great article. It is great to see someone writing something positive about wholesaling. There are big time wholesalers who are self made millionaires because they are so good at marketing and business. This big time guys don’t have to worry about crying contractors and laborers. They just wholesale and keep some properties for themselves for long term wealth. I get tired of seeing old guys and other some real estate agents saying that wholesaling is illegal. Keep on doing what your doing.

  18. Thank you Brett for this article.

    I have zero experience in real estate except for the purchasing and selling of my home. I am a stay at home mom and my husband is a union cabinet maker. My husband does all kinds of remodeling projects as side work to make up my lack of income. He is extremely handy and talented. I always have this drive in the back of my head that says “you can do more”. I have always drawn to the idea of making money in real estate ever since meeting my husband and discovering his talents but having no start up money has always put a stop on any of our plans. The last day or so I started googling real estate terms and came across Wholesaling and Hard Money; two terms I have never heard of before. I am very excited to learn as much as I can and hopefully a path will become clear on which way to go. Thanks for the article.

    • Brett Snodgrass

      Thanks Julie,
      I advise that you learn as much as you can and see if there is a local real estate networking meetup in your area to attend. I would study which niche you want to do… Having your husband as a handyman can really help if you are a fix-n-flipper or buy-n-holder. He can also help in the wholesale side… sometimes we 1/2 way fix up a house like a pre-hab to get it looking better for the next investor… I still think this is pretty much wholesaling it, but there might be something you can do to a property without doing a full Rehab. Thanks again.

  19. Shawn Connors

    Great Read!!!

    getting started in real estate by wholesaling and hearing someone else that has a positive approach about it uplifts my spirit. I do see why wholesalers get a bad rap which is a shame, but not all wholesalers are bad. I like to learn from the best, which is why I continue to participate in the Biggerpockets community. Thanks for the hope!!!

  20. Kerry Klein

    Thank you so much for that info/insight. As a “newbie” myself I am doing exactly what you said I should do: finding out what path is right for me. The last thing I want to do is find myself in an nightmare of a situation.

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