Wholesaling can mean two things depending where you stand. It could mean buying in bulk and selling at a relatively low price compared to retailers. There are also those who buy in bulk, keep them until prices go sky high. You call that hoarding? Sorry but that is not the case. Hoarding applies only for essential commodities that almost anyone can afford and critical to daily sustenance. In real estate, wholesaling is investing in a property that is cheap and likewise selling it cheap with a good profit. That’s wholesaling with real estate investors. It no longer becomes wholesaling when you need to renovate or improve – that’s flipping. Whew – when you’re a business person you’ll get crazy with the different uses of these terminologies – or the lack of proper understanding of them. Well, that could be one mistake when you misconstrue what it really means especially if you are a newbie at real estate investing.
It is hard to believe reading about real estate wholesale that has been given different meanings to it. For this matter, I would go for the meaning ‘buying cheap without any extra repair or improvement expense on the house and turning it over cheap with good profit’. It is closer to the true meaning of wholesaling in general business sense.
So the biggest mistake would really be trying to follow the different interpretations on wholesaling houses. That alone can get a newbie real estate investor lost! For first timer real estate investors, stick to investing in houses that are cheap without the need for additional investment for repairs and renovation. Then likewise sell it cheap for profit that you will be happy with.
If you would do a research on wholesaling of houses, there are even those who could not exactly draw the line between flipping and wholesaling! The best thing to do is forget about the terminologies used in real estate investing. Just do what needs to be done and make sure you make enviable profits! If someone comes up to you and say you’re doing this and not that, tell that someone that’s just semantics. What is important is that you are realizing the good gains you’re making no matter what it is called as long as it is legitimate.
Do not go for the trap that they would say you don’t even know how to call what you’re doing. Tell them that you are doing real estate investing and for whatever terminology it is supposed to be, you don’t care as long as you’re making good money out of it. Don’t allow those words to make you think and reconsider what you’re doing. Let it be a problem for those who want to put a name or word on your real estate investing style or scheme. Bottomline is the money you make out of it.
Have you heard people say, ‘I don’t know what it is but its good!’ As long as it doesn’t harm them and it’s good for them it does not really matter what it is called, right? Like food, it is cooked is many ways. Cooks make or create a name for their concoction. Does it really matter for you what the name of the recipe is? You may know the name of the recipe but not know the ingredients and how it is cooked. Forget about the name ask the recipe for it. That’s what’s going make you happy to be able to eat more of it.
Watch for the new SIMS Profits.