Investors – Is There Still A Profit To Be Made On Wholesale Properties?


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At the height of the real estate market bubble, wholesale property investing (buy and flip) was commonplace. This model of real estate investing involves searching for and buying properties at discounts in the hopes of selling them to retail investors. Many investors made fortunes through this venture. In today’s market, the razor thin profit margins are a hurdle for investors who want to make living selling wholesale properties. Is investing in wholesale properties still a profitable business model?

High demand and the ability to buy at discounts are requirements for wholesale property investing to be profitable. In the current market, investors can still purchase these properties at discounts. With diligent searching and excellent negotiating skills, investors can find deals almost anywhere, especially in regions where the market is particularly hot. There are still plenty of motivated sellers who would gladly settle for an offer below market value.

Being able to find great deals only satisfies one side of the equation. Flippers still need to be able to sell their newly acquired properties. While there is nothing they can do to increase aggregate demand, they can still use certain practices to increase the likelihood of finding buyers. For instance, wholesale investors can identify the parts of the country where economic activities are picking up steam faster than usual and choose to only invest in such areas. Obviously, cities with declining populations and business activities should be avoided at all costs.

The rules of the market place have changed and investors need to adapt to it. In the past, flipping was all about getting rid of inventory as quickly as possible. Today, this concept may be a difficult proposition and flippers may have to hold on to houses a bit longer. These days, being a real estate investor requires a great deal of flexibility and the ability to change one’s strategy at a moments notice. As a matter of fact, diversification might just be what’s needed to sail through these unusual times.

Today’s market might not be the most ideal environment for wholesale property investing but this doesn’t mean that there aren’t opportunities to profit from wholesale investing. Remember that wholesale investors may have wait until selling opportunities present themselves. A little extra research may be required, expectations might have to be lowered and above all, investors need to have an applicable exit strategy. Before considering investing in wholesale properties, remember that the current market requires that investors have access to greater cash reserves since they may need to hold on to houses longer than usual.

Asking questions with these tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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