Do Hard Money Reviews Why All New Investors Should Wholesale Before They Fix & Flip

If you’re an investor looking to profit from the real estate world, you probably want to dive into your first house flipping project as soon as possible. A house flip is an incredible way to make money quickly, but much can go wrong along the way if you’re new to the job. This is why Do Hard Money recommends focusing on wholesale investment before ever trying a fix and flip project.

How Does Wholesale Differ From a Fix & Flip?

When you start a fix and flip project, you’re in charge of the buying and selling process from start to finish. You have to find the home, negotiate the contract, get investment funds, take care of the renovations, and then finally list the house for sale.

But a wholesale deal only requires you to find the house and put it under contract. At this point, you’ll hand it off to another investor who takes care of the renovation, while you benefit by getting paid with a finder’s fee. Obviously, a wholesale deal is a lot less work, and a great way to learn the ropes. You’ll usually profit between $5,000-$15,000, all for simply finding a great deal.

Why Choose Wholesale?

If you’re not already convinced, Do Hard Money reviews 7 excellent reasons to choose a wholesale deal.

1. Get a Confidence Boost

Real estate investment is a tough gig, and a wholesale deal is a great way to get your feet wet and boost your confidence while you’re new to the industry.

2. Quick Flip

Rather than spending up to 6 months flipping a house, you can profit in as little as three weeks with a wholesale deal.

3. Enjoy a Money Cushion

If you’re planning to flip a house, it’s important to have money in the bank for unplanned expenses. A wholesale deal will give you quick cash to help provide a money cushion for your other investments.

4. Avoid a Massive Loan

House flips are stressful for many reasons, especially because you have someone else’s money on the line. A wholesale deal allows you to make a profit without having to take out a huge loan. There’s no worry about deadlines or making payments, either.

5. No Remodel to Deal With

A home rehab is not for the faint of heart. There’s a reason so many television producers have created hit house flipping shows—the industry naturally comes along with a lot of drama. Avoid managing a renovation altogether when you choose to do a wholesale deal instead.

6. Market Changes Won’t Affect You

Even people who claim to be experts on the housing market can be taken by surprise. If the market takes a nosedive while you’re working on a fix and flip, you’ll likely lose a lot of money. A wholesale deal minimizes the risk.

7. Build Your Business

After you steady your footing with a few wholesale deals, you’ll be much more prepared to take on a fix and flip project. But even if you never moved on to house flips, you could still build an incredible business with wholesale deals alone.

Finding an Investor for Wholesale

After reading these 7 benefits of wholesale deals, you’re likely ready to take this route before taking on a house flip. However, the one drawback of a wholesale deal is that it can be difficult to find an investor to assign the contract to after you find the deal. Luckily, Do Hard Money makes the process much easier with our “Partner With a Pro” program. Sign up and get access to an amazing network of professionals and investors across the country today.