You probably already know that I’ve built my whole career on buying, fixing, and flipping distressed properties. I love the whole process, from finding properties and talking to motivated sellers to figuring out the best designs and rehabs to seeing the looks on buyer’s faces when they fall in love with one of my houses. It’s all fun and really rewarding. But house flipping isn’t for everyone.
If you’ve been reading about flipping houses, and you’re just not sure it’s right for you, you might be thinking that real estate investing isn’t the best path for you, either. That’s not necessarily true, though. A lot of really successful investors make their money—or at least get started—in real estate wholesaling instead of fix-and-flip or fix-and-hold properties. Here are just a few reasons that you might want to consider this route.
You Can Make a Profit Fast
With wholesaling, you never take ownership of the property. Instead, you make an offer and put the house under contract. Then you sell that contract to another real estate investor, usually for about $3000-5000, depending on what kind of deal you get on the house. If you’re good at networking and you’re vigilant about marketing your wholesales, you can turn deals around within a week or two. Even if you’re just doing one deal at a time (which I generally don’t recommend), you can easily make a few thousand dollars a week with relatively little work.
You Can Do It Part-Time
Not everyone wants to become a full-time real estate investor. If you like your job or you’re looking at ways to make money after you retire, wholesaling is a great option. It’s about as far from a 40-hour a week job as you can get, and it can bring in a significant amount of money. So, if you’re looking for a way to make money on the side without leaving your job or taking on something full-time, real estate wholesaling could be the best option for you.
Get to Know the Real Estate Investing Business
Another great reason to get into wholesaling is to learn about real estate investing. If you think that you might want to get into house flipping, but you’re not sure that you’re ready to jump right in, wholesaling is a great way to get your feet wet. As you get to know the markets in your area, you’ll also get to know other real estate investors and real estate pros working near you. This is a great way to start networking so that you won’t feel like a total newbie if you ever decide to start flipping or holding properties of your own.
You Don’t Have to Have Great Credit
Finally, remember, you’re not going to be the one buying the properties you wholesale. That means that your credit has little to nothing to do with whether or not you can buy the contract on a house. Basically, instead of needing great credit, you’ll just need great marketing and networking skills. And the more you wholesale, the more you’ll build your list of buyers, which means you’ll sell properties faster and more easily, making it more feasible to wholesale multiple properties at once and make really great profits.
If you’re not as excited as I am about fixing and flipping distressed properties but you’re interested in real estate investing, consider wholesaling. It could be your path to building a seriously successful real estate investing business.