Let’s explore one of the fastest growing and arguably most exciting real estate strategies, wholesaling!
But it’s not all about buckets of cash and driving lambos. Like any profession, there are good parts and bad parts and in this video we’re going to explore the pros and the cons of real estate wholesaling.
Fortunately, for the most part at least, the biggest drawbacks a real estate wholesaler will face are things that cannot be changed by the wholesaler: the market. Real estate wholesaling tends to be far more productive and far more valuable when there are lots of sellers and not many buyers. Real estate agents call this type of market, a buyer’s market.
Unfortunately for us in 2020, most areas of the United States are experiencing the strongest seller’s markets of all time. It’s hard to find actual statistics but based on feedback I get from people across the country, including what I’m seeing here in southeastern Michigan, for every one seller there are no fewer than five or six ready, willing and able buyers. That might be a reason why prices continue to go up and up! Not to mention the fact that as interest rates go down, even more new buyers into the marketplace making it even an even stronger seller’s market! Thanks a lot, Federal Reserve!
But if you can make it as a real estate wholesaler in 2020, you are going to do very well when the market finally comes back down, whenever and wherever that might be. It’s not a sprint, it’s a marathon.
So do yourself a favor and do your due diligence. Check out www.biggerpockets.com and check out some of their calculators, podcasts and other useful information pertaining to real estate wholesaling. Check out other YouTube channels including Wholesale To Millions, Flipping Mastery TV, Fortune Builders, Max Maxwell, and Lili Thompson to name only a few. Between YouTube, Google and BiggerPockets, you’ll have more than enough resources to get started.
As for the good stuff, the advantages, those are in abundance.
Firstly, you don’t need credit, a license, or any money to get started. If you have an interest in real estate and marketing and at least a basic understanding of property valuations, there is a lot of money still to be made! After all, you are just connecting motivated sellers with ready, willing, and able buyers.
There are no ongoing fees, subscriptions, dues, or other charges that you need to constantly stay on top of. You don’t have a boss or a managing broker breathing down your neck. You are truly your own boss to a degree that very few other professions can offer.
In conclusion, real estate wholesaling is fun, exciting and very flexible. But admittedly, it’s not the best time to get started. 2020 sucks, especially for newer wholesalers. Not only are we in a crazy seller’s market, but also it’s even harder to find deals, find great buyers and stay afloat.
But fear not, everything that goes up, must come down. And with proper education, training and real-world experience, you’ll make it through 2020 and prepare yourself for the coming housing crash, whenever that might be 🙂