Are you a house flipper who wants to generate speedier profit from your work? Or you are a wholesaler who wants to increase their profit margins a little from the homes you already broker your deals.
Wholetailing real estate is a happy medium solution for many working in real estate looking to make their trade perform better for them. It involves some principles of wholesaling, in other words, being the conduit between the seller and buyer, as well as some principles of flipping. Doing a complete renovation before selling could be the solution you are looking for.
This article will cover what exactly wholesaling real estate means, how it works, and the benefits of wholetailing.
To wholetail real estate is to buy a distressed property and then make minor improvements or ‘flip’ to make the place presentable and to make a profit.
The traditional wholesaler will not usually own the property, instead securing a contract with a seller who will sell at a discounted price, then finding a buyer who is willing to pay more than their purchase price, leaving the wholesaler to pocket the difference, which can lead to lower profits than traditional real estate.
With wholetailing, the wholesaler will own the property and do a little work to get it up to a good standard before selling it for a better profit than they would from simple wholesaling.
The traditional house flipper, on the other hand, is someone who buys a property to do some significant renovations and restorations before selling it for a juicy profit which can lead to substantial earnings. Still, the work involved is extensive, tiring, and can be a bit of a gamble.
When a flipper switches to wholetailing, they will do less work to the property, simply making good and ensuring it is cosmetically sound before selling it to another party which is easier than renovating and a quicker way of making money.
Wholetailing is a middle ground between being a flipper, with all the tiring and expensive work to do to the property before selling it, and a wholesaler, who needs to have quick thinking and confidence to sell a distressed property for a higher price than they acquired it for, not always an easy feat.
While this method takes away the pains of wholesaling and flipping, it also combines the benefits of those two worlds—generating higher profits from selling a presentable home to the end user and the speed of a wholesale deal. Let’s look at the benefits in more detail.
Wholetailing can be described as a ‘happy medium’ solution for real estate agents, flippers, and wholesalers alike. It involves some of the principles of wholesaling, where the dealer acts as the middle person between a seller and buyer but doesn’t physically own or improve the property for a quicker deal, and some principles of flipping, where there is extensive work done on the property for a bigger profit.
When we ask, ‘what is wholetail real estate?’ the answer is that it is a way to turn a distressed home into a property that can be marketed competitively to the end user with minimal work and maximized profit.
