Does it make sense for real estate investors who buy and hold to be involved in wholesale homes at the same time?
Real estate wholesalers and rental property owners are often pitted against each other in heated debates online. Both camps frequently attack the other and criticize their real estate investment strategies. So is there a middle ground where real estate investors can apply both tactics at once and what could be the benefits of doing so?
Wholesale home sales are considered the superior investment strategy in many ways today, and have proven to be a highly profitable long-term strategy for many investors.
The benefits of wholesale houses include low risk exposure, easy entry, fast recapitalization, high profit margins, and more.
Many buy-and-hold real estate investors aren’t comfortable with flipping because they simply don’t understand it, or have been thoroughly brainwashed by real estate investing gurus selling them courses and training that focus on building portfolios of high-end properties. rent.
No doubt, there is a large income and even significant wealth to be had from buying and renting houses. However, that’s not to say that owning and managing rentals doesn’t present plenty of challenges and potential problems as well, especially for newbies, but also in terms of tight cash flow for veteran investors.
Wholesale home sales can be a great reason to ramp up a buy-and-hold strategy and fill in the gaps. More than that, it’s actually one of the best ways to shore up breakouts and really maximize all revenue opportunities and profit margins.
Wholesale homes complement rentals by providing a critical lump sum of short-term cash that can be used to expand portfolios and finance debt-free rehabs, to get better deals on acquisitions, and to fill in until larger volumes of Cash Flow.
The beautiful thing is that it doesn’t take a lot of effort to add tumbling to the mix. For many it’s just a matter of wholesale the homes they are already finding that would otherwise be left to go to waste.
Leads aren’t cheap these days. So if it’s simply a matter of signing a contract and passing the deal on to another hungry investor for a nice chunk of compensation, why not? At the very least, this could pay for all other marketing and lead generation activities and help build referral relationships to receive the favor returned in the future.
