Wholesaling vs. Rehabbing

Wholesaling vs. Rehabbing

How many ways are there to make money on a real estate deal?  12?  or more?
That is one of the most exciting things about real esate to me because any given deal can provide a way to make everyone happy if you just know which angle to play.

Two of the most common techniques are Wholesaling and Rehabbing.
When considering these approaches the biggest question is:  do I want to make quick money now or do I want to take it a little slower and longer and get a bigger paycheck?

Wholesaling will get you quick money with very little actual involvement in the deal.
When you wholesale a property you basically act as an intermediary.
You have a buyer that is willing to sell a particular property at a very discounted price.
There are many reasons they might be willing to do so.
Once you have an offer to them you go and find another person to buy the property at a higher price.
You have no financial involement.
You don’t have to worrry about finding financing.
And you can typically get a deal done within two weeks.
It sounds simple and it really is.
Not necessarily easy, but simple.

Rehabbing is what you see all the people doing on TV.
You are buying a property that is in need of work (can be very minor or VERY major) and fixing it up to sell.
Interestingly enough rehabbers are wholesalers biggest clients.
On a rehab you are actually purchasing a property (which means you have to find financing).
You are then going to fix it up (whether yourself or with contractors; we use a combination).
You put the house back on the market (or market to your retail buyers list) for an increased price.
It sounds simple, and it really is.
Not necessarily easy, but simple.

An average wholesale deal will make you $3000 – $10000.
An average rehab deal is tougher to peg but, $15000 – $50000 is a reasonable range.

So, as you can see, which technique you decide to use all depends on what your goals are.