Wholesaling, flipping or buy & hold?

Question

Hi All!

Looking for some feedback. Anyone here have trouble with picking an exit strategy to target to maximize profits based on their personal / company goals?

How do you pick between wholesaling, flipping and buy & hold?

Nathan Gesner · Answer

Wholesaling is a job. You have to hustle. As long as you work hard, you can make some decent money, but that money dries up the minute you stop hustling.

Flipping is a job. It has potential to make more than wholesaling, but it also requires a lot of work. It also requires more risk because you're "buying a job" with the hope that your renovation estimates are correct, material costs remain steady, your health remains steady so you can work, and that the market remains strong so you can sell quickly and for a profit. The money dries up the minute you stop swinging the hammer.

Buy and hold is an investment. You put a little money and effort into it up front, then wait. It continues to produce money while you sleep, vacation, work your W-2 job, etc. You gain equity, you appreciate, you get tax benefits, you cash flow, and it all happens with very little effort on your part. Do it well and you'll be financially free in less than 10 years and never have to work another day of your life.

Jay Thomas · Answer

Hey Brett good question,

Wholesaling works if you have little to know capital and time to cold call. Fix and Flip works if you have capital to start with. I recommend looking at your goals and timeline in comparison to what each strategy will require of you. Depending on housing market in your state if you do fix and flips it may sit on the market longer than you'd like. I hope this helps you pick your brain some more!