Risky Real Estate and Wholesaling

One of the many reasons for new investors to hesitate investing in the real estate industry is the fact that real estate markets fluctuate.

This means the overall real estate investing industry is subjected to a few factors that can manipulate the state of the market and influence its changes. Seems scary and risky, right?

This is the reason new investors hesitate to make their first move.

 

The Secret of Real Estate Industry

Well, the fact that the real estate industry is risky and the value fluctuates – is not a secret. However, what most people don’t realize is the fluctuation cannot affect you if you are an all-knowing investor.

I know that “all-knowing’ only works for supernatural, human can’t know everything but they can know enough to learn to draw a change.

 

Research, Monitor and Analyze

If you constantly monitor the market up close, I don’t think the fluctuation will cause you a lot of problems.

Even the assessment of the market can be your fortune teller and warn you about a downfall before it happens. So researching, monitoring and analyzing the data is the key to avoiding any unpleasant situations.

 

Getting involved with Real Estate

Now that you understand how the fluctuation of value is not that big of a deal,as people imply, you must be prepared to invest in Real Estate. Let me tell you how.

To be honest, there are a lot of ways one can start investing in Real Estate. I’ll talk about all of them someday. But today, I’m only going to talk about Wholesaling.

 

What is wholesaling?

The basic concept is what you see in the grocery store and wholesaling shops.First, you buy something, and then you sell it at a higher price. Seems like a retailer, right?

The difference between a wholesaler and a retailer is about the quantity they buy or sell. For example, a retailer buys 10 units of a product and sells them in a day for 2 units of profit each. On the other hand, a wholesaler buys 200 units and sells them in a day for 1 unit of profit.

Here, the retailer made a profit of 20 units on a day where the wholesaler made 200 units of profits each day, even though they profited less from each product sold.

 

Wholesaling in Real Estate

Wholesaling in real estate is somewhat similar.

You buy a few properties at a low price and then sell the properties separately for a higher rate. This is how it works and if I’m being honest, this is the best way to get involved in real estate if you don’t have the slightest idea about real estate.

Wholesaling might just be the best and less-risky way for real estate investment. The only obstacle I see is the fact that you need more capital than you would need for an individual buy. The other way is just selling the sales contracts, but if you are unable to sell the contracts, you will need to buy the property. So, I think Wholesaling is a great idea for newcomers who want to join the real estate.

 

For more info, please visit: Charles K. Carillo

 

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