​is a wholesaler considered to be a real estate investor?

14 Replies

the only money that might actually be needed for a wholesaler to my knowledge/belief is a Earnest Money Deposit?

how to do a title search for each state to see whose name was written down in the legal documents right?

or maybe if we can find the name of the title company/attorney involved we might be able to find whose names were written down on the legal documents.

NO  I don't think so I think if you never actually own anything then your in sales and marketing

or a real estate broker without license.

The only true real estate investor are landlords, developers and syndicators. I wouldn’t say flipping is investing either. Flipping and wholesaling are almost the same thing.....

Originally posted by @Jonathan Damon :

Yes because you are investing with time, energy, and marketing. A real estate investor is just someone who makes money in real estate. 

 LOL I completely disagree.  Investors put in CAPITAL....and not the "hey I found a sucker and put a house under contract for $20 kind). I purchase a house, I INVEST 40K of MY MONEY...and borrow the rest. I have something to lose. As to your comment that a real estate investor is someone who makes money--the fact is SOME LOSE MONEY. Bad deals, Poor decisions. Not enough due diligence. Market factors. BUT---they put in CAPITAL...and THAT makes them an investor. If you study the stock market, does that may you an investor? No. If you BUY stocks, you ARE invested in the market.

There are two ways to produce income - labor and capital.  We someone uses their labor to produce income, we generally call that a job.  Using capital to produce income, on the other hand, is generally called investing.  Many types of "real estate investment" rely much more heavily on labor than capital to produce income.  IMHO, those are jobs and the person doing them is a worker, not an investor.  A job doesn't mean guaranteed income.  Many jobs are commission based.  You close deals, you get paid.  A job does not mean someone else is paying you.  Many jobs also require capital to be invested in order to do the job.  A college degree, for example, requires a significant capital investment in order to qualify you for many jobs.  Wholesaling, IMHO, is an example of a job, not an investment.  You may need some significant cash, but the income is produced by your efforts - labor.  No effort and, no matter how much you spend on marketing, you won't get paid. 

@Kenneth Wiley generally defined, an investor is deploying capital for return over time. Someone who owns rental properties or stocks would be considered an investor. 

Wholesaling and flipping is a job. You must continuously spend time and/or money to get income. This is an active profession.

Not that it really matters. Call yourself an investor if it makes you feel better. Very often people who start in wholesaling and flipping move into rental properties due to the passive aspect. Worry less about labels and more about the best way for you to acquire wealth.

I would say it depends on how you have things set up. If you’re just a singular person who’s hunting for deals and doing wholesaling all yourself, then that’s a job and you’re investing time and not capital, hence being called an investor is probably a stretch.

When I studied engineering for 4 years and thousands of hours of my time, I was a student not an investor, even though I was investing lots of my time. I’d say the same goes for flipping.

Now if you’re a business owner and you invest a lot of capital in hiring out most of your functions, I’d say you’re an investor and your asset is your business.

Why is this topic so heated, when it really shouldn’t be. Business is Business. Real Estate is a form of investing regardless the labor or how much risk being spent. Just like owning a store and running it or getting someone to run it for you. Better yet, own the building and let business owners rent from you. Just because you put thousands in the pot to invest doesn’t mean it’s not labor. Your labor is in your mental welfare, making sure your investment is safe. Owning is work, hard work, You have to maintain your properties or maintain the property manager. Point is it’s all a job. It doesn’t become a job 9-5 when u have good systems in place. Can’t we all get along? We should all be working together. It’s all real estate investing, let’s get it together people.

A wholesaler is in the sales business within the real estate industry.

A investor dose the following

in·ves·tor
inˈvestər/
noun
a person or organization that puts money into financial schemes, property, etc. with the expectation of achieving a profit.

I know someone who strictly wholesales. He buys cheap cheap, simply cleans a house out or will do a bare minimum facelift, and lists below market value on the MLS. That individual has consistently made between $400-$600k per year for the past 10 years. Ive seen the tax returns. I'd say that he is an investor.

Originally posted by @Brandon Ingegneri :

I know someone who strictly wholesales. He buys cheap cheap, simply cleans a house out or will do a bare minimum facelift, and lists below market value on the MLS. That individual has consistently made between $400-$600k per year for the past 10 years. Ive seen the tax returns. I'd say that he is an investor.

 Absolutely. He can call himself an investor, flipper, wholesaler (legal)...he puts in capitol. What market does he work if I may ask?