Wholesaling, can you actually make money??

10 Replies

Can you actually make money by wholesaling in the real estate market. I'm looking for was to build up cash to ultimately be able to buy hold and flip houses in the Greater Rochester, NY area and wanted to know on average how much can you make per deal and how difficult is wholesaling?

Thanks for your input!!

Wholesaling and real estate investing can be as profitable as you want it to. If you know how to find the deal and know how to sell the deal you can make 5, 10, 20k on a wholesale. But why would you want to wholesale? If you have a deal where a rehabber will make 50k on it and you'll be making 5k, why would you not want to keep that deal and make a bigger spread. Sure, it might involve you doing more research and learning more, but you could easily partner with an experienced rehabber, get 50% of the profit, make 25k on the deal, and get "on the job training." 

Work smarter, not harder

Originally posted by @Devan Mcclish :

Wholesaling and real estate investing can be as profitable as you want it to. If you know how to find the deal and know how to sell the deal you can make 5, 10, 20k on a wholesale. But why would you want to wholesale? If you have a deal where a rehabber will make 50k on it and you'll be making 5k, why would you not want to keep that deal and make a bigger spread. Sure, it might involve you doing more research and learning more, but you could easily partner with an experienced rehabber, get 50% of the profit, make 25k on the deal, and get "on the job training." 

Work smarter, not harder

 True but will rehabbers want to partner up with me knowing that I don't that much equity to put forth on such a project? 

@Andre Wilson If they don't partner with you, they do not get the project..... You hold all the leverage. If it's a deal, money will come

Originally posted by @Devan Mcclish :

@Andre Wilson If they don't partner with you, they do not get the project..... You hold all the leverage. If it's a deal, money will come

 OK I see so I can potentially make 25k without technically using any of my money is what your saying? I want to gain some knowledge here in the real estate world.

@Andre Wilson Just find ways to add value. Offer to manage the project, being there all day, talking to contractors, doing all the leg work no one wants to do. You also go find the properties. Even if you  get 10% stake in the property, you will learn more that way than assigning paper

Take care of your seller. Take care of your buyers. Know a good deal when you see one, help the seller, put EMD skin into it, follow through and provide your buyers a valuable service. Word gets around, good or bad.

Buy and hold is where I am and it's great.  Happy to have you @Andre Wilson

Originally posted by @Devan Mcclish :

@Andre Wilson Just find ways to add value. Offer to manage the project, being there all day, talking to contractors, doing all the leg work no one wants to do. You also go find the properties. Even if you  get 10% stake in the property, you will learn more that way than assigning paper

 Ok I see 

Keep in mind that you might be able to make more money partnering in a rehab but this takes a lot of time and work.  You could make 25k in two or three months or 5k in a few days.  Both are great options it is really just which one works best for your situation.

Both wholesaling and flipping are great ways to earn money. To Chad's point, you can earn the $5k with greater velocity, increasing your immediate cash flow. However, to Devan's point, you are potentially passing up on a great overall return. Wholesaling is generally a great option if you get into a new area and are unsure how to move forward and don't have the resources to oversee the flip. I've found that in this space you can usually find partners when you have the property. Again, as Devan said, you hold the leverage. Just make sure the terms are favorable to both parties and that you are protected. From there, it sounds like a great way to get "on the flip training" for your first few deals. That is hard to come by and no amount of education or reading materials can prepare you for your first rehab project. 

Best Wishes and Happy Deal Hunting!

Originally posted by @Ben Brunson :

Both wholesaling and flipping are great ways to earn money. To Chad's point, you can earn the $5k with greater velocity, increasing your immediate cash flow. However, to Devan's point, you are potentially passing up on a great overall return. Wholesaling is generally a great option if you get into a new area and are unsure how to move forward and don't have the resources to oversee the flip. I've found that in this space you can usually find partners when you have the property. Again, as Devan said, you hold the leverage. Just make sure the terms are favorable to both parties and that you are protected. From there, it sounds like a great way to get "on the flip training" for your first few deals. That is hard to come by and no amount of education or reading materials can prepare you for your first rehab project. 

Best Wishes and Happy Deal Hunting!

 Thanks for your input!

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