You might have heard the term “wholesale real estate investing,” but what is it? Wholesale real estate investing is a type of real estate investment strategy. In this strategy, an investor purchases a property with the intention of selling it for a profit. The investor never plans to use or rent out the property. You may have heard of this form of real estate investment by its more common name: House flipping.
House flippers either make money from quick appreciation from a very hot real estate market with rising prices or from fixing up the property (making capital investments) so that the property will sell for more. A savvy investor may even find a fixer-upper in a neighborhood that is sure to appreciate quickly thanks to a hot market, utilizing both means of making a profit on the home.
Many wholesale real estate investors (also called house flippers) will focus on one house at a time. Some will purchase a group of properties. Either way, house flippers strive for a steady flow of income through frequent flips. As with other investments, house flippers buy low and sell high. The only difference is that using a buy-and-hold strategy isn’t effective unless the house flipper ends up living in or renting out the property. If a property isn’t sold quickly, it ends up costing money in property taxes, utilities, insurance and maintenance, which can cut into profits if the property stands empty. So, ultimately house flippers focus on speed instead of maximum sales price. Ultimately the maximum profit may come from a quicker, lower priced sale, rather than a higher priced sale in which the investor has to spend more on capitol investments or other expenses.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.