Can nice profits can out weigh any disadvantages wholesale real estate investing might bring?
Truth be told - Some disadvantages that wholesale real estate investing might bring to your lifestyle, and the counter balance -- your increased income.
I just roll my eyes when someone mentions any disadvantages with my wholesaling real estate business. Yes, it's work, but it's work I really enjoy! Sure beats working for someone else. And I meet the most interesting people.
Bring it on! Some disadvantages to wholesale real estate investing
Let's compare any disadvantages, such as. . .
- Unstable income
- People can be time-wasters
- Takes time to master (but once you're in, it's gravy)
Now, let's look at the pros of these same arguments:
- You have 100% control over your income, the more you put into your wholesale real estate business, the more you'll make.
- It's so easy to use my simple script to weed out the time-wasters. Yes, they'll be some, you can count on it, but you will just move on to the next great deal. NEXT! it's certainly not a disadvantage to wholesale real estate investing.
- Everything worthwhile takes time, right? Once you commit to learning something new, it's exciting and you can't wait to get to the next chapter.
Same is true with learning the ins-and-outs of wholesaling. You'll see that some complete new vistas are going to open up to you, and you'll wonder why it took you so long to see the value here. And the paychecks are pretty good, too.
There are always 2 sides to every story (what's yours?)
You'll probably hear that one of the disadvantages to wholesale real estate investing is that you won't make as much money as house flipping. And that's simply not correct.
While it's a natural fact that you'll make less on each wholesale deal than the person you assign your contract to, you'll make more money because you can do far more deals in one month -- whereby a house flipper can only do a couple a year (if they have the finances to pull it all together).
- Has to locate the deal.
- Needs cash to buy the deal from the wholesaler and close the sale.
- Needs more cash to fix it up.
- Has to have a pocketful of contractors willing to work at a reasonable rate and start right away, without leaving him high and dry.
- Typically takes 3-9 months start to finish, weather permitting.
- Has to locate the deal.
- Has no money in the deal.
- Negotiates a fair price with the homeowner.
- Assigns the contract to an investor (say, the house flipper).
- Makes an Assignment fee of his own creation, deciding his own paycheck.
- A wholesaler can have as many deals working every month as he can handle. And several at one time, because he's not managing work crews.
What do you think, do the positives out weigh the disadvantages wholesale real estate investing?
Certainly nothing is perfect. And it's simply a personality decision, if this is the path you'd like to venture into along your real estate journey.
Best advice is to do a couple deals and see how it fits your own personality. I'm a people person, and enjoy seeing everyone benefit in any wholesale transaction. It makes me smile!
Oh... one more thing, here is the link to the script I promised about weeding out the time-wasters. It's best to use it with your first phone conversation, that way you don't waste your time on a trip to the property.