When investing in real estate, the profit is made on the purchase and collected on the sale or on the monthly cash flow.
Being a real estate investor, one of the biggest assets in the business the ability to know how to identify a good deal. This is where the money is made. When an investor knows that they are purchasing either a rental property or a flip, knowing that it is being purchased under market value is key! If not, they wouldn’t be in business anyway. My definition of wholesaler is basically a “deal finder”. When an investor tries to purchase a property directly from the source, sometimes they will be able to find a great deal, but most of the time is not even worth their time and energy to focus on the research and acquisition side of it. Wholesaling or “finding deals” is a complete business on its own and it requires a lot of knowledge, time and energy in the process. If an investor who wants to buy to fix and sell or rent spends time finding deals, they may lose their main focus on making their money on their flip. The best way for them to make money is to leverage their time and energy by purchasing their deals through wholesalers. They know they will find a great deal and they can count on them to walk them through the closing process. I believe that we are in the relationship business and we should be able to work as a team where wholesalers focus on finding deals, flippers focus on flipping properties and landlords focus on purchasing and managing rentals. Focus on what you do best and let others help you in the process. This is how I do business. It must be a win-win!
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