Buying from wholesale company

[Jared S.]

Is this a good idea?  Are there good deals to be had? I'm on a website of an RE investment group that wholesales houses.  Typical description / example... 3 bedroom 2 bath for 79k.  Needs 25k in rehab costs.  Will sell after repairs for 175k.  So basically a potential 70k profit?   Seems like a good deal so why aren't you (the wholesale co.) doing it and making the 70k profit instead of wholesaling it to me for 10k over what they paid for it?

[Adrien C.]

Originally posted by @Brent Coombs:

@Jared S., anyone can SAY: "Will sell after repairs for 175k". But...

My suggestion is: if you want to put effort into rehabbing homes for flipping, you should put in a little extra effort and find those same homes for $50-70k (instead of $79k) YOURSELF!

Brent- you have to ask yourself what your time is worth and how do you maximize the value of your time? If a wholesaler can bring you a home and the numbers work for the investor, is it worth paying the wholesaler whatever their fee is? Finding off market homes isn't a walk in the park- it takes a lot of time and persistence tracking down the sellers and getting offers accepted. If you're skill is in the construction phase- focus on that.