Is Wholesaling a bad thing? Wholesaling has a pretty bad reputation when it comes to Real Estate, as there are people who consider it a bad move when it comes to placing a contract on a house that you are going to market instead of buy, which many think is a) a waste of time and b) somehow illegal! But the question remains, is it a bad thing?
Let’s go over the basics first, what is wholesaling? Basically, it’s when you acquire an asset with the purpose of distribution, this is a retail term, and it’s commonly referred to as resellers, which are the ones who will acquire the goods to resell it to the end buyer, now this applied to Real Estate is the action of holding or marketing a property to find it an end buyer.
The thing is, that while wholesaling is completely legal in the US (with some exceptions! Check your state laws first), some people are not very keen on making deals with other wholesalers, as most of the time they hold the property under contract to market it and if they don’t find an end buyer, they let it go, which to the sellers might look like they are purposefully wasting time and money, but that’s not completely the case! The idea of finding a buyer to a property can be helpful to the seller, and it’s good for the wholesaler as they obviously benefit from it.
But the question continues, is Wholesaling bad? Personally I think it’s a great way to continuously keep your business going as they will most likely benefit the seller because the house is being shown to more and more buyers with whom wholesalers have done business in the past! Now, wholesaling as a whole isn’t all that there should be tho, the best way for the market to continue moving and growing is for you to become an active participant and go out there to find the perfect properties for your buyers, so you can do wholesaling on the side but keep your eyes on growing as a Real Estate agent!
I would love to see what you have to say about the topic, tho! So let me know, do you think Wholesaling is bad for business? Is it disrespectful? Is it a great strategy? I would love to know! You can follow us on our social media accounts and see our brand new change for the summer season!
Remember this Thursday we have another IRGChat on our Twitter account, it’s about the Best Places to Buy on South Florida, hope to see you there, at 2pm (EST)!