Newbie in LA - Which one is better a Wholesaler or Flipper/Rehabber in you opinion?

6 Replies

Hi! Newbie from LA Area. Some people gave me advise that Wholesaling is very competitive and better to be a Flipper. In your opinion which one is better Wholesaler or Flipper/Rehabber? Please advise. Thanks

good question. 

every answer you will get is going to be different.    the fact is what is better for you is based on you. 

If you have cash to invest to be able to buy and fix up your potential profit if you buy right and rehab right is obviously going to be much great then your profit would be as a wholesaler. 

however to be a wholesaler allows you time to gain good experience in evaluating deals.  the cost to be a wholesaler is almost nothing except your time, energy, and effort (and a little money for marketing)   but you usually wont make as much as a wholesaler as you would as a fixer/flipper... not do you deserve to as your risk is much lower. :)  

@Glenda Mitchell  

First off "Welcome to BP", 

Now on to your question. There really is no simple answer only because both are of very different nature.

You would have to ask yourself some of the following question:

  • What are my Ultimate Goals
  • What are my Talents

When it comes to Wholesaling, are you good at tracking leads down are you good with communication with people.

When it comes to Flipping, are you a good scheduler and are can you coordinate subcontractors or trades people.

Make a list of Pro's and Con's, Interview a couple of each (Wholesalers, Flipper's)

and then make a decision to what best suits you personalities.

Cheers.

Originally posted by @Glenda Mitchell :

Hi! Newbie from LA Area. Some people gave me advise that Wholesaling is very competitive and better to be a Flipper. In your opinion which one is better Wholesaler or Flipper/Rehabber? Please advise. Thanks

 Flipper = construction, project management. more cash involvement, more returns, about 10-20% of selling price.

Wholesale = marketing, dealing with distressed individuals and hoping you get their under contracts. More like buyer seller matching. 3-5% of selling price.

Glenda welcome to BP!!

This is just my opinion but first learn wholesaling and get deals under your belt before doing fix n flips. I lost just about everything on my 1st fix n flip because I didn't know my ARV, and did a horrible job on estimating.

Wholesaling you will get good at knowing your market place ARV, and will have lots of practice knowing your numbers.

Keep us posted on your success!!

Either way works, I personally would flip a house and make 5-10k if I had limited funds. I've done that here in TX through some contacts, I'm mostly a passive investor, I let other people do the work! :)

Jim P.,

Your flipping a house for 5k is for the birds.  Who would take on that much risk for $5,000 over a 2 month period?  Your posts seem to state the same things on every thread you comment on.  Almost generic.  As I stated before, I can work a $10/hr job and make 5k in months.  What's your angle?

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