Difference between wholesaling and rehabbing

Bird Dogs, Wholesaling
1

Silly question… I know.

Is wholesaling simply buying at the lowest price, then selling to another without any repairs… or possibly only gutting, then re-selling?

Is rehabbing buying low - ie. below market inclusive of repairs and profit margin… and selling to a buyer whether investor or long term home owner?

I want to invest in a course. The options are to wholesale or to rehab.

Thanks.

2

wonderful question… the sad thing about this is that I have noticed that you have to enroll in a class at Hard Knock University and do the best that you can to learn this business…

I am new to this business also and I would agree with your definitions as they seem logical…

3

With wholesailing, you buy low and then sell to someone who is interested in rehabbing the property, leaving enough money in it to make it profitable for the rehabber. Rehabbers buy from wholesailer or by direct themselves, fixup the property, then sell it retail for the maximum profit.

Those who do contract assignments, never buy the property, they simply get the contract signed and then sell the contract to someone else.

Now I have question, I know of this company wholehouses.biz who does nothing but wholesale. How do they afford to buy and hold so many different properties. Another question, what is the different in the amount made by someone who wholesales and someone who assigns contracts, and does the person who buys from a wholesaler have problems with seasoning.

Birdog - finds property only and makes about $500
Contract Assigners - Finds property, gets contract signed and makes $2500-$3000
Wholesalers - Finds property, buys property and makes ???
Rehabber - Finds property, buys property, fix it up, and makes max profit

Thanks

4

“Contract Assigners” isn’t anything different then Wholsalers, it’s one in the same, they aren’t called “contract assigners” its all wholesaling

Wholsalers get property under contract, then either double close or “assign” their contract over to the buyer. As a wholesaler you should shoot to make between 2k-5k in profit, you can’t get greedy because your end buyer or “assignee” (ie. investor) puts up the most money plus the most risk therefore should make most of the profit.