Wholesaling vs. Flipping

Real estate wholesaling and house flipping are two different practices. They are often confused. I have stated the difference below.

 When you use a wholesaler, they act as the middleman who seeks out cheap properties and connects them with buyers for a fee depending on how you arrange the closing. Very little time is spent fixing up the houses or even placing them on the traditional housing market.

House flipping involves rehabbing a house with the homeowner. It involves fixing it up enough to make it very ‘market ready’. There are also a lot of open houses and attempts to bring in a more traditional buyer who is looking to live in the home after purchase. House flipping can provide larger pay offs than wholesaling houses for a living as these cheap houses now sell for full market value. It also involves a lot of extra work and it’s harder to sell a house at full value.

 Real estate wholesaling is really a very simple business. You develop a process for bringing in wholesale leads, develop a buyer list and start assigning contracts to your buyers. It really is easy once you get the process started