flipping better than wholesaling

10 Replies

if i can find the funding + holding costs adn everything, would flipping be a better option for me? is it easier+ better return?

Only you can determine that. In no way is it easier than wholesaing as you have to do or supervise the flip. Bigger risk, bigger reward.

Chris nailed it. Neither is generally better than the other. You just have to decide which is the best fit for your situation.

Flipping assumes a ton of risk, a longer timeline before payday, and requires time management, people management, and project management. It also usually offers a much greater financial reward if done properly.

Wholesaling on the other hand is minimal risk exposure in comparison to flipping, but it can be a full time sales job. Advertising, marketing, and networking are key traits required here.

Doing anything with no experience is going to be hard. If anything that could yield a good return was easy, everyone would be doing it.

If you want to flip houses, find a local rehabber and ask if you can work with him/her. 

Tell them you are willing to work cheap in return for the experience. 

I hear this advice a lot about finding someone local to apprentice with and learn the trade. Why would someone want to train their future competition though? What would you experienced rehabbers want from me to even consider this option? (I am trying to figure out how to make myself more appealing when finding someone to try this with.)

What could you offer that's valuable? Time?  I'd love for someone to help project manage my rehabs for free for me. If I had someone willing to make the trips to Home Depot for supplies so my workers could stay on site that would be great value added.  And that person would get amazing hands on experience.

As far as the comment about training your competition, there are lots of great threads on this site about that.  The general idea is there are way too many houses for me to try to work every lead.  It's impossible. Every investor cycles from being money heavy to inventory heavy during different times. If your mentor who trained you is money heavy and you found a good deal, you can wholesale to him. If you need a house, he can sell to you.  You end up having a great synergistic relationship with your "competition" so you both end up winning. I often find myself with a great lead, but already have my crew and my funds tied up.  That's a perfect time to pass it on to someone else for a small profit and we both win.


Originally posted by @Derek W:

What could you offer that's valuable? Time?  I'd love for someone to help project manage my rehabs for free for me. If I had someone willing to make the trips to Home Depot for supplies so my workers could stay on site that would be great value added.  And that person would get amazing hands on experience.

As far as the comment about training your competition, there are lots of great threads on this site about that.  The general idea is there are way too many houses for me to try to work every lead.  It's impossible. Every investor cycles from being money heavy to inventory heavy during different times. If your mentor who trained you is money heavy and you found a good deal, you can wholesale to him. If you need a house, he can sell to you.  You end up having a great synergistic relationship with your "competition" so you both end up winning. I often find myself with a great lead, but already have my crew and my funds tied up.  That's a perfect time to pass it on to someone else for a small profit and we both win.

Hi Derek - 

I read your post above and wanted to reach out. I'm furthering my education into REI and would love to assist you on any projects you need help with. I have quite a bit of time on my hands right now as I can work my salaried job from anywhere with my phone. If you ever need assistance or need boots on the ground over here towards the San Fernando Valley, please let me know. I'd love to learn from the things you're doing and would gladly pay with my time.

Thank you,

Carey

@Derek W

Welcome. Time to build the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 70 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

Couple good reads 

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

@Derek LeBlanc It all depends on your level of Investing experience. Both are cash building strategies.

@Derek W.

@Paul Timmins, great to see you on here, we need to catch up sometime!

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