Wholesaling Properties, Best Investment Strategy for 2013 and Beyond?
Is wholesaling properties the best real estate investment strategy for 2013 and beyond?
All forms of real estate investment have been performing very well recently from flipping houses, to REITs and housing stocks, new home building, investing in distressed debt and purchasing large portfolios of rental properties. So why choose to focus on wholesaling properties as your main real estate investment strategy?
Besides being easy to get into, fast returns and larger returns, perhaps the most common argument for wholesaling real estate as a strategy is that is works in every market cycle, everywhere. This offers great flexibility as well as simplifying planning and business continuity no matter what goes on.
Looking at the current market and emerging trends which show rising mortgage interest rates and property values (even if rents go up too), we could see spreads on rental properties thin and buy and hold investors hampered in growing portfolios as well as they have recently. As this develops, how much weight and debt do you really want to be holding and managing on a daily basis?
Is it not better and wiser to be in and out, with no property management, enjoy reduced risk and just have to worry about holding the cash? That’s what wholesaling properties does for real estate investors.
This is in addition to the fact that all factors have been aligning perfectly for investors wholesaling properties. While flipping works all the time, we know have the optimal conditions for high volume, high velocity, high profit property wholesaling. The inventory is there, the spreads are there, and now the demand and resale market is well in place too.
Regardless of what some pessimists and sensational headlines might claim we are still looking at millions of distressed properties in the pipeline in some form or other. This means that even in the hottest and wealthiest markets in the country like the Hamptons on Long Island and in Sand Diego, CA discounted properties can be found at 30-50% discounts below previous values.
At the same time we are enjoying rapidly rising home values and easier access to investor credit for those flipping houses. Now that more buyers entering market from all angles (retail buyers, solo domestic investors and institutional foreign ones) the final piece of the puzzle has really locked into place to make wholesaling more profitable, while shortening the cash flow cycle and compounding investment returns.
Click the Join Now Button Below to Get Your 30 Day Risk Free Trial of Flip2Freedom Academy