General Information Regarding Wholesale Real Estate

Wholesale real estate is real estate purchased from the property manufacturer and sold to a retailer. The retailer may be a real estate agent or independent buyer.

Today, wholesale real estate is a term used to describe the business of property investment whereby property is purchased not to be used, but to be sold in the near future for a profit. This can mean "flipping" a property, or quickly repairing it to list it for sale, or purchasing property in bulk from a home builder or bank. 

Many real estate investors consider themselves to be in the business of wholesale real estate. This simply means they buy homes at discounted prices at the institutional level. Wholesale real estate professionals have the potential to make limitless profits. However, if you are considering getting into this business, there are a few things you should know:

  • Property values are difficult to estimate, and wholesalers often lose as much money as they make on investments
  • Real estate sales is a relationship-driven business, and individuals just getting started can be at a significant disadvantage
  • It costs money to make money in this industry; every home sold, must first be purchased which can be a significant investment
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