flipping or wholesaling?

Question

hello, I have 50,000 dollars to work with and am looking to purchas properties for flipping or wholesaling purposes any recommendation's?

Jeff Copeland · Answer

You can do a lot with $50k and good credit (if you have $50k cash on hand, I assume you're not bankrupt?). Here is a recent example of a flip we acquired for less than $50k.

Granted, you'd need access to additional funds for the renovation, but if you can work out a deal with a hard money lender or partner, why make $1k on a wholesale deal when you can make $20k by flipping the same property?

Note: Having $50k in the bank will help you immensely as a wholesaler though, because you can provide proof of funds with your offers. That's a huge advantage over someone with no cash on hand.

Personally, I like to have multiple exit strategies. I never put a house under contract that I don't intend to purchase, but if I can get out quick with a wholesale deal, make a reasonable assignment fee, and never touch the place, sometimes that's a great exit.

On the other hand, I'm always prepared to flip it or hold it myself as secondary or tertiary exit strategies.

Gerard Mcknight · Answer

Thanks a bunch Jimmy and Johnyour advice is extremely valued. Will keep you posted. Thanks again.

Jimmy Watson · Answer

Why not both?

What price range are you looking at if you flip?  Will you be using hard money to fund the rest of the flip project?

From experience, hard money guys like to see at least 15k (your skin in the game) in the bank before they will give the green light on funding your projects.

I have not personally done any wholesaling, but from what I have gathered, you would have plenty money left over for a good marketing campaign!

John Horner · Answer

Wholesaling is only necessary if you don't have money.  If you have the money to close it is much more lucrative to close on a discounted deal and list it on the MLS, which would not be considered wholesaling.

I would only suggest flipping if you have experience or a partner who does.  If you don't do it right it can gobble up money and time.