What Is Wholesale Real Estate Investing?
Wholesale Real Estate investing also known as flipping houses is a fast money strategy which involves acquiring deeply discounted properties and reselling them rapidly at wholesale prices.
What is the difference between wholesale real estate investing and other strategies?
The main difference between real estate wholesaling and other real estate investment strategies is that your main goal is to turn over the property as quickly as possible. This can be done to retail buyers, but generally these homes are flipped to other investors who will rehab and retail them or retain them as part of a rental property portfolio. There are a few variations of this strategy. Some investors never own the properties and are simply involved in contract flipping or assigning contracts, others may go ass far as ‘pre-habbing’ properties to make them more appealing to other investors.
What are the advantages of wholesale real estate investing?
- Short hold times
- Extremely low risk
- Minimal investment
- No money down deals made easy
- No property management required
- No bank financing needed
- No holding costs
Who is wholesale real estate investing for?
Real estate wholesaling is certainly ideal for the beginner investor and those who want to start part-time. It requires very little or no cash investment in many cases and is virtually risk free if done right. This makes it the perfect choice for those without a lot of start up capital and who are looking for an easy way to get into real estate investing and build wealth quickly. However, real estate wholesaling also remains one of the top strategies used by some of the wealthiest and most sophisticated investors who desire steady cash flow and low risk investments. It is a great choice for students, stay at home moms and dads, those looking to add to their income, the recently unemployed, enthusiastic entrepreneurs and savvy business people alike.
What are the most important factors for real estate wholesaling success?
The 3 main factors that will fuel your real estate wholesaling success are:
- Getting access to discounted properties
- Finding a good transactional funding source
- Cultivating a good network of regular buyers
Additionally of course you are going to need a good real estate investing program as a foundation and you will want to work on building your marketing knowledge and skills in order to boost your wholesale real estate investing volume.