Louisville, KY area Investors-Flips

[Suzette Bickers]

Question for the Louisville, KY area. Are flippers looking for their own deals from home owners, from home owners with their house on the MLS, or do the majority of the properties come from wholesalers' deals?

I can't understand the concept of why flippers  would do deals with a wholesaler and not go out and get their own deals where they could make more money without the middle man.

It feels like this wholesaleing strategy is not panning out well for my dad and I. Also, where are the deals with the $ room to sell to an investor/flipper so they are enticed with a healthy enough profit for them?

Totally discouraged :/

[Michael Seeker]

Originally posted by @Suzette Bickers:

I can't understand the concept of why flippers  would do deals with a wholesaler and not go out and get their own deals where they could make more money without the middle man.

You make money by going beyond what a normal "flipper" wants to do on their own.

I could make a lot more money on rehabs by cutting out the contractors I pay to do the work.  But then I'd have to be over there doing all the work myself and wouldn't have time for as many deals (similar idea with wholesalers).  As Clay pointed out, investors who are flipping properties typically don't have enough time to source deals.  Their time is spent completing rehabs and they're willing to pay a wholesaler a few thousand dollars to bring them profitable projects.

The less capital-intensive an investment is, typically the more time-intensive it is.  Wholesaling is not very capital-intensive but is very time-intensive (i.e. you've got to work hard to make money as opposed to putting your money to work for you).