Flipping and Wholesaling Homes Your Key to a Better Future

Over the years, real estate investing has helped many people achieve their goals and fulfill their dreams. Despite the ongoing economic crisis, many people are still encouraged to take part in this lucrative industry. Well, who could blame them? With just a small capital, patience, dedication, and hard work, you can earn big investment returns and provide a good life for your loved ones.

Two of the most common forms of real estate investing is flipping homes and wholesaling houses.  Although many people confuse one for the other, using each of them to make a living has its advantages and disadvantages.

Wholesaling houses is the act of placing a property under contract and then assigning that contract to a buyer, who will close the deal. Many investors prefer this type of real estate investing over flipping houses. It is because they can earn a considerable amount of money without making big risks since they are not actually buying the property. In addition, they don’t need to borrow money from lenders since they don’t need huge amounts of cash just to get started in this business.

A wholesaler usually earns $5,000 to $20,000 per transaction. If he has acquired contracts for multiple properties, then he can pocket a large sum of money. A disadvantage of wholesaling houses, however, is that he might encounter problems when selling the contracts that he has acquired. In addition, a property’s holding cost is expected to increase if a wholesaler can’t still find a buyer for the property’s contract after a certain period of time.

Flipping homes, on the other hand, is the process of buying and quickly selling a property for profit. Unlike in wholesaling, an investor usually spends a considerable amount of money on a property. He can either sell the house as soon as he acquired it or do some repairs and upgrades before selling it at a higher price.

Investors usually hit the jackpot if they manage to find an undervalued property in the best part of the city. With some repairs and little bit of sprucing up, they can earn big bucks because of the property’s new look and prime location. A downside of flipping homes, however, is that just because you have succeeded in your first flip, it doesn’t necessarily mean that it will always be the case. There are times that you won’t easily find a buyer for the property that you have refurbished.

Therefore, no matter which method of real estate investing you choose, always remember to educate yourself with the right knowledge and proper guidelines. Conducting some research and reading instructional materials will definitely help start your investing business on the right track. In addition, they can help you avoid costly mistakes.

You can also join the local real estate investing association or befriend your fellow investors. Interacting with like-minded people allows you to gain valuable tips that can help boost your career.

To improve your knowledge of flipping homes and wholesaling houses, you can visit RehabList.com. The web site has various resources, which include articles and instructional videos, that can be valuable to a real estate investor like you. Log on to www.Rehablist.com for more details.