Why New Investors Should Be Wholesaling Real Estate

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on why Wholesaling / Flipping Real Estate is good for beginner investors

Qualifications: Wholesaling Property “Ease of Entry”

Not a lot of…

Time
Experience
Money or credit
Resources
Looking to make Quick Cash with low risk

Investment: Typical Wholesaling Properties Work Day

Time — Typically 1-3 Hours a day
Looking through ads/posting ads
Calling realtors
Drive-through neighborhoods
Attending REIA meetings/networking
Building a Buyers list
Market Analysis
– pulling comps
Creating a Plan
Money
– Earnest money — as little as $1 – $1000 — get it back rather quickly

Financial/Experience Gain from wholesaling houses:

Typically $1,000 – $10,000 / transaction (5-10 total hours of work per transaction)
Build relations — realtors, investors, title companies,
Learn the market
Assessing profit margins based on Repair costs
Familiarize yourself with purchase and sales agreements
Start building financial strength
Move on to other areas of real estate — rehabs, short sales, reo's

Wholesaling Property Risks:

Money in Deal – If using private mortgage lender, none of your own money is in the wholesale real estate deal
End buyer backs out
Buyers list setup
– pre-sell properties – no holding time when you flip properties
– replace buyers

If you always wondered how or what niche of real estate investing was a good place to start, wholesaling properties is it. It's low risk, doesn't require credit, very little capital is needed, and the time investment is very manageable especially if you have a full-time job. Flipping real estate allows you to learn the business safely, and helps you to start build financial strength so you are able to pursue bigger and better investments.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.