Deciding to get involved with real estate investing can seem daunting at times. There are many types of investment options. Like being a landlord with rental properties, developing raw land, leasing commercial space or fix and flip investing. All of these means of investment and more can be profitable if you are positioned properly to use them. Some of them require a lot of capital, experience and taking on heavy risk. Some of them require a great deal of time. If you’re new to real estate investing wholesaling properties to fix and flip investors is a great way to get started. It doesn’t require much money and will help you grow your real estate knowledge and skill set so that you can expand to other forms of property invresting if you decide that you want to. Who knows though, there are some very successful real estate investors who do nothing but wholesaling. You may decide you love it and the flexibility it provides.
Wholesaling is where you find the deeply discounted properties needed for a successful house flip, get the property under contract and then assigning that contract over to an investor who will complete the rehab and sell the property. Thay will give you a commission for finding and securing the property for them. Sometimes you will hear wholesaling referred to as bird dogging.
Of course, the commission payout will be much less than what you might make on the rehab if you complete the investment that way yourself. But you will not have all the hassles and risks associated with rehabbing a property, listing and selling it. In fact, some investors build a successful business with only wholesaling because it works well for their personality, time constraints and goals. It is not easy, it does take a lot of time, but reaalative to fixing and flipping there is less involved.