Mommy and LifeStyle blog By: EINz

Tuesday, June 23, 2020

Fix & Flip Real Estate Investing vs. Wholesaling?

For those unfamiliar with Real Estate strategies, Flipping and Wholesaling have been mistaken as the same thing. But what exactly is the difference between the two?


What is Fix & Flip Real Estate Investing?

→ This is the strategy of buying a house, renovating it and selling it to a valuable gain.

The following are the Pro tips in Flipping the house for maximum profit:

  • Don't buy house with damaged mechanicals.
  • Inspect the Property Before Making an Offer.
  • Map Out Your Profit Margin Carefully.
  • Plan for Different Potential Exit Strategies.
  • Know Who Your End User is.
  • Select Properties That Can Be Updated Quickly.
  • Reach Out to a Reputable Hard Money Lender.
  • Understand Risk Factors & Come Up With a Plan.
  • Know the Estimated Cost of Your Flip.
  • Build a Good Rehab Team.
  • Price Your Home Correctly
  • Know Which Improvements to Make.
  • Don’t Try to Do Something Too Big.
  • Don’t Make Unnecessary Improvements.
  • Partner With the Seller.
  • Choose the Right Market.
  • Determine How Much Cash You Will Need.
  • Take Care of All the Big Ticket Items & Do the Work Correctly.
  • Update Bathroom Vanities.
  • Add a Few High-end Features to Your Property.
  • Buy the Worst House in the Best Neighborhood You Can Afford.
  • Update the Walls, Ceilings & Floors.
  • Plan Your Renovation Carefully.
  • Study the Local Market.
  • Take the Necessary Real Estate Courses.
  • Do Your Due Diligence When Purchasing a Distressed Property.
  • Leave room for unexpected costs.
  • Work With a Real Estate Agent Who Knows the Local Market.

With all the Pro tips listed above, one must also take advantage using an online platform like Connected Investors review that connects real estate investors to private funding, off-market deals, and other serious real estate investors. By using a Real Estate App, it makes it easier to gain knowledge and network all throughout the Real Estate Community.


Wholesaling?

→ Is when the house is put under contract and sold-as is to an investor.


  • In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it.
  • The wholesaler contracts the home with a buyer at a higher price than with the seller, and keeps the difference as profit.
  • Real estate wholesalers generally find and contract distressed properties.
  • Unlike flipping, a real estate wholesaler doesn't do any renovations or additions, and carry no costs.

Looking from each simpler definition, Fix and Flip investing needs a large sum of investment to start of. If you don’t have money to buy the property, pay for utilities, insurance, Attorneys fees, taxes, closing costs, etc… then consider wholesaling.

Although some experienced more success in Flipping, it's just a matter of finding a good deal that determines what's the best strategy to take.

Personal Thoughts:

I consider Wholesaling less stressful as it was a direct agreement between the  seller and the buyer. It can be more manageable and profitable after all as one doesn't have to actually invest. Wholesaling deemed as more beneficial especially when you hit a foreclosed properties wherein sellers can agree to sell below market value rather than affect their financial dynamics like the burden of taxes, mortgage, insurance and upkeep.

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