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Real Estate Investing Strategy: The Great Wholesaling Debate

Written by Than Merrill

Whether you have 20 years of real estate investing deals under your belt or you just started yesterday you need to read this…

It is amazing just how misunderstood wholesaling remains among the real estate investing community. Lately it seems some real estate investors hate wholesalers as much as they do Realtors and instantly dismiss it as a viable investment strategy. So what’s the real deal?

Is wholesaling really a smart move or are wholesalers simply leeches attempting to make easy money off of more educated and wiser real estate investing pros?

3 Things Every Investor Needs to Know About Wholesaling Real Estate:

1. Snake Oil Salesmen or Savviest Investors?

Are wholesalers ‘snake oil’ salesmen or being sold by them or are they actually the smartest investors?

Wholesaling works. With so many success stories and hard figures to back it up, there is no way to deny it. It may not be the real estate investing strategy for everyone but there are others making real money by doing it, so just because you neglected to invest in that part of your real estate education don’t knock it till you’ve tried it.

Think about it; wholesaling exists in every industry out there, so why wouldn’t it work in real estate? And while everyone’s results are different there are wholesalers who have made over $1 million a month doing it. They don’t even ever have to lift a hammer or deal with a single tenant phone call. So savvy or silly, give that some thought.

2. Wholesaling Doesn’t Have to be a Job

While some recognize the above advantages of wholesaling they still discount it as a long term real estate investing strategy. This is especially true of the buy and hold landlord crowd who think constantly having to find deals means it is a full time job to wholesale homes.

Of course the same could be said of managing rentals and rehabbing. However, those who know how to scale and build systems can make wholesaling into an automated turnkey business which throws off passive income just as well as any other business. Virgin airlines certainly relies on constant ticket sales but it is doubtful Richard Branson has manned a ticket counter or booked tickets for travelers over the phone for quite some time, if ever.

3. You Need Wholesalers

Some greedy real estate investors can’t stand to see others make a dollar on a deal, but they will also be the ones who seriously limit themselves. Good wholesalers offer a valuable service and one which can be vital for growing a high volume business and reaching your personal goals. Yes, they have a finger in the pie but they can also save rehabbers and landlords masses in up front resources. Plus, as foreclosures dwindle and competition heats up it will be those with the best relationships with the best wholesalers who have all the deals they want coming across their desks every day without having to lift a finger.