Why Wholesaling Houses Is a Great Way to Investing In Real Estate

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Are you interested in real estate investments or flipping houses?

You might be apprehensive to enter the business because of all the time and commitment it takes to make a profit. However, when you learn about wholesaling houses you’ll see why it’s a great way to make a profit.

Read on to learn why.

What is Wholesaling Houses?

Are you interested in real estate investments or flipping houses? You might be apprehensive to enter the business because of all the time and commitment it takes to make a profit. However, when you learn about wholesaling houses you'll see why it's a great way to make a profit. Read on to learn why. What is Wholesaling Houses? In real estate, wholesaling takes place when the wholesaler gets a property from someone selling a home, and then markets the house to potential buyers. The wholesaler then assigns the contract to one of them and makes a profit. The purpose of it is to get a property under contract and then selling it as soon as possible. Let's take a look at an example. Let's say you have a house under contract for $80k. The property needs about 20k in repairs, and then the wholesaler plans on selling for 145k and make a profit. Instead of making the repairs, the wholesaler finds a buyer who will pay $90k. The buyer will be able to sell the property and still make a profit. Meanwhile, the wholesaler also made 10k without owning the property or making repairs. Who Can Benefit? Since you don't need a lot of money to get started wholesaling houses, it benefits starting up investors who are eager to sell and make money. Wholesaling also benefits those investors who are starting out and don't have a long credit history or bad credit. Since they don't technically take ownership of the house, their financial information is not necessary. Wholesalers also learn the ins and outs of how to flip houses for profit and make good deals. How Do You Make Money? Compared to investing in real estate and then flipping the property, with wholesaling you will make money faster. You don't have to buy a property, fix it, put it on the market, and then wait for it to sell. Wholesaling sometimes allows for you to get your money within days to weeks. Think about it, you don't have to do all of the repairs or flip the house, so you can move on to the next project. You will, however, have to be responsible for the closing of the property and all of the costs involved. There are Cons Of course, with everything, there are always cons. Wholesaling doesn't guarantee you a steady income. Weeks or months could go by without a new project when you're getting started. You run the risk of not being able to find a buyer. If you don't have a buyer then there's no deal. You run the risk of having to pay the seller, and your reputation could be at risk. Ready to Begin Investing? Wholesaling is a great real estate investment option if you want to make a profit fast. It will teach you the skills necessary to identify and make great deals without going through the entire process of flipping a house. If you enjoyed this article and would like read more about real estate and investing, visit our blog.

In real estate, wholesaling takes place when the wholesaler gets a property from someone selling a home, and then markets the house to potential buyers. The wholesaler then assigns the contract to one of them and makes a profit.

The purpose of it is to get a property under contract and then selling it as soon as possible.

Let’s take a look at an example. Let’s say you have a house under contract for $80k. The property needs about 20k in repairs, and then the wholesaler plans on selling for 145k and make a profit.

Instead of making the repairs, the wholesaler finds a buyer who will pay $90k. The buyer will be able to sell the property and still make a profit. Meanwhile, the wholesaler also made 10k without owning the property or making repairs.

Who Can Benefit?

Since you don’t need a lot of money to get started wholesaling houses, it benefits starting up investors who are eager to sell and make money.

Wholesaling also benefits those investors who are starting out and don’t have a long credit history or bad credit. Since they don’t technically take ownership of the house, their financial information is not necessary.

Wholesalers also learn the ins and outs of how to flip houses for profit and make good deals.

How Do You Make Money?

Compared to investing in real estate and then flipping the property, with wholesaling you will make money faster. You don’t have to buy a property, fix it, put it on the market, and then wait for it to sell.

Wholesaling sometimes allows for you to get your money within days to weeks. Think about it, you don’t have to do all of the repairs or flip the house, so you can move on to the next project.

You will, however, have to be responsible for the closing of the property and all of the costs involved.

There are Cons

Of course, with everything, there are always cons. Wholesaling doesn’t guarantee you a steady income.

Weeks or months could go by without a new project when you’re getting started.

You run the risk of not being able to find a buyer. If you don’t have a buyer then there’s no deal. You run the risk of having to pay the seller, and your reputation could be at risk.

Ready to Begin Investing?

Wholesaling real estate is a great real estate investment option if you want to make a profit fast. It will teach you the skills necessary to identify and make great deals without going through the entire process of flipping a house.

If you enjoyed this article and would like learn more about wholesaling click here.

The Premier Real Estate Investing Learning System

Real Estate Investing is one of the fastest and most lucrative ways to generate cash flow. The key is having the right knowledge and the right tools for growing your business.


Learn More

Subscribe To My Newsletter

Get exclusive content from my podcast & new announcements delivered to your inbox. I'll never share your info. I can't stand it when people do that either.

More To Explore

david vobora
Entrepreneurship

David Vobora

He took a beating on the field and off, but David Vobora fought back every time. First, he attacked his title of “Mr. Irrelevant” by

dave santia american snippets
Entrepreneurship

Speed Painter Dave Santia

Dave Santia, Speed Painter and Accidental Altruist What happens when art meets altruism? You get Dave Santia! He’s not just an artist. He’s an upside