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Wholesaling vs. Flipping.
What's the Difference?


Wholesaling and flipping are both real estate investment strategies, but they involve different approaches and objectives.

If you  start introducing yourself around the local real estate investment groups to find passive investment opportunities, you are likely going to meet people who are wholesalers, flippers, or buy and hold investors.

Buy and hold is self-explanatory. But what about wholesalers and flippers?




In wholesaling, the investor acts as a middleman between the seller and the buyer without actually taking ownership of the property.

The wholesaler finds properties at below-market prices, typically distressed or motivated seller properties, and enters into a contract with the seller to purchase the property at a set price.

Instead of closing on the property themselves, the wholesaler assigns or sells the contract to another buyer at a higher price, making a profit from the difference between the contracted price and the selling price.

In most cases, wholesalers are not looking for private lenders or investment partners. Instead, they are looking for cash buyers who can make a quick decision whether they will buy the wholesaler's deal and have the money to close.


Flipping involves purchasing a property, usually at a discounted price, with the intention of making renovations or improvements and then selling it at a higher price for a profit.

Flippers typically invest in properties that need cosmetic or structural improvements and aim to increase the property's value through renovation work.

The flipper takes ownership of the property, invests in repairs and upgrades, and then sells it for a higher price, ideally making a profit from the appreciation in value and the improvements made.

Flipping requires a good understanding of the local real estate market, renovation costs, and the ability to manage renovation projects effectively.

Due diligence is required to find a flipper who has a track record of successful deals.


But once you find the right ones, flippers can provide you with a regular supply of passive investment opportunities, either as a private lender or as a joint venture partner, depending on your investment strategy and interests.

If you would like to learn more about investing in real estate to build wealth using your savings, HELOC, or 401k/IRA funds, feel free to contact us. We would love to talk about investment  strategies and share our experience to help you leverage your resources to achieve financial success.

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