What do you feel about Wholesaling?

Question

So.. what do you think of wholesaling? How do you start? How does it work? Is it a smart idea? What are some benefits of wholesaling versus regular real estate investing?

Jay Hinrichs · Answer

sounds good in theory but lead Generation cost money.. and you have to really look within to see what your skills sets are.

those that do well in this business ( see a bunch of them) are like any other well capitalized and run company.

1. they have a marketing budget which is anywhere from low of 60k a year to high of 500k a year.

2. Vertically integrated  they have call centers they have closers that run out to the property the second they get a lead they have office staff to handle the transactions..

3. owner is sharp knows the business inside out.. and frankly would do very well at just about any business they wanted to work in.

those that do this on their own with zero help.. those come and go with the wind.. failure rate I suspect is far more than 90%

Along with Markets matter.. do you live and work in a market with excess inventory that can be had.. or are U in a very tight market.. tight markets are tough.. Rust belt areas were there are tons of vacant houses  tough neighorhoods and burnt out landlords are the better areas for wholesalers the price points tend to be low and agents don't want to fool with them.

I would not go into this business undercapitalized .. other wise just drive around a bit and knock on doors throw a few bandit signs up and see if you get lucky

Saravanan Saravanan · Answer

@Gregory Williams

Wholesaling provides you instant cash with minimal risk.  Say you can find a  great deal and do assignment of contract to landlord or flipper; basically cash buyer.  They would pay you $2000 to $10,000 in general; based on the value on that property.  When you find exceptional deal; you can do double close using transactional funding and make over $10,000 profit in one deal.  We have supported as lender when folks purchased for $17,000 and sold for $30,000 same day.

The flipping, land lording might need some cash of your own; even though you can get lender involved for portion of it.

There are other tweaks and variations on real estate; which you can explore as well.

See what works best for your situation and change as you grow.

Kelly DeWinter · Answer

A lot of people think of Wholesalers as the Used Car Salesmen of Real Estate . Wholesaling has always struck me as a lot of work for a little return. flipping a small property will gain you a lot of experience. Investing in Real Estate starts up slow but builds rapidly.