Wholesaling - With Nearly No Risk vs. Long Term Real Estate
By: Darius M. Barazandeh,
Attorney at Law / M.B.A.
start out clarifying a few points about ‘short term’ investing and
‘long term’ investing. First,
understand that wholesaling and ‘flipping’ houses are for short
term activities. Traditionally,
when we think of real estate investing, we envision someone buying a
property and holding the property for the long term.
In this 'traditional’ buying situation, the investor would find a
good and well maintained property sold through a real estate agent, borrow
the money from a bank to fund the purchase and then hold the property for a
number of years. The property
might have rental income and certainly over time would increase in value.
At the end of perhaps 10, 20 or 30 years, the true investor has a
property that has appreciated in value and maybe even paid off.
This is a long term real estate investor.
the contrary, what we will be teaching you in this program is quite
different. From this point
forward we are not going to use the term investor (if I can help it!) to
describe the short term buyer and seller of real estate.
We will call the short term buyer and seller a ‘real
estate entrepreneur’. Thus,
one involved in the short term buying and selling of real estate is in
essence, building a true business, a business which supplies others in the
real estate industry with an inventory of properties.
For example, unlike
the long term real estate investor:
The short term buyer may never
obtain a loan on the property!
The short term buyer may or
may not perform repairs on a property!
The short term buyer’s total
investment in the property may be only $50 to $100 and their return might be
50 times this amount!
The short term buyer may hold
only a contract to buy the property and may sell or ‘assign’ this
contract to another investor for a profit of $3,000 to $5,000 in 1 week!
The short term buyer won’t
always use a real estate agent and in many instances will buy the property
from someone who is ‘motivated’ to sell!
The short term buyer might buy
a property that needs repairs and may spend months coordinating such
repairs, and then sell the property!
The short term buyer might
learn about the property from a beginning investor and not a trained real
The short term buyer does not
rely on market appreciation. They
rely on ‘buying correctly’ at the right price and under a very specific
set of conditions!
you can see, there are some significant differences.
The first of which is that the property is generally being sold
quickly (i.e., in less than a year in most instances).
Also, you might notice that the short term buyer may never obtain a
loan in order to purchase the property.
The short term buyer may only invest $50 to $100 in the property and
then ‘assign’ or ‘sell’ their rights to the property for $3,000 to
My purpose for introducing these 7 fundamental differences is to change how you think of this process. The short term buying and selling of real estate is without question more aptly a business activity than an investment activity. Take a moment and think about any successful business that you know. As you can imagine, there are numerous parties and players in such a business.
To learn more about how you can start wholesaling properties with very little cash (as little as $35 per property) please see 'Attorneys Secrets to Quick Cash Wholesaling and Flipping Properties'.
You can also email me if you have any questions: email@example.com
To learn which mistakes to avoid, how to create, run, and maintain an ‘iron clad’ LLC or
To learn more about business entities, tax choices and charging order discussion, please
listen to our free AUDIO SEMINAR! (no downloads required!)
I want to wish you the best of luck in your endeavors and email me if you ever need help!
If you plan to invest in Texas please see: Texas Houses for Pennies™
If you plan to invest in tax lien certificates states, please see: The Attorney's Step-by-Step Guide to Investing in Tax Lien Certificates
Information contained within this article was not intended to be, nor should it be taken by the reader as legal, financial or tax advice. The above article was written for educational purposes only. If the services of a