When it comes to real estate investment strategy, which should you pick? Wholesaling or rehabbing? No matter which direction you go, remember that each one has its own pros and cons.
Wholesaling (most commonly known as ‘flipping’) requires large amounts of capital today. The up side is you can make substantial money with little work. For example, in a seller’s market it’s not uncommon to go from zero to $20,000 in 30 to 45 days on average. That’s probably one of the greatest benefits that you’ll find when wholesaling Denver realty.
The downside, at the moment, is that the market is already saturated with Denver homes for sale. Plus, buyer qualifications have become more stringent. That means if you do plan to flip a house you need to be prepared to wait for the sale. However, if you have the right Realtor to find properties that would be in high demand and/or sell quickly then wholesaling could be quite profitable.
By contrast, when you do a rehab that mean you plan to buy, fix and resell real estate, which often involves hiring a contractor or handyman. The process takes longer and it does cost more up-front, but the overall returns are often greater in value. Rather than 10K-20K you make in wholesaling, with rehabbing some locations could earn you between $25,000.00 to $40,000.00 (or even more). The trade off is the rehabbing process takes more time.
Is there a right or wrong way to invest in Denver realty? No, but each one does have its perks and disadvantages. You have to decide which one is right for you and talking to a quality Realtor about the options is a great start.
