The Wholesaling Real Estate Option

When it comes to investing, an interesting question can be posed: is earning a 3% return on an investment worthwhile provided it is virtually guaranteed? For many people, such a return would not necessarily be worthwhile and they would prefer to take their chances with a riskier venture that comes with the higher rate of return. Hence, people invest in the stock market as opposed to dumping all their money in a checking account. Now, in real estate there is a unique method of low interest/high reward investing as it is known as “wholesaling”.

What wholesaling refers to is purchasing a block of property and then selling the properties at a low profit. This may seem like a less than worthwhile venture on the surface, but when one looks at it closely it is clearly a solid plan. The profits are then maximized in terms of the volume of the sale. For example, if one purchases 15 residential properties and then sells the properties at a $4,000 profit per property the profit will accumulate at $45,000. Certainly, that is far from a bad deal! In fact, it is one of the safer large scale investment plans available and can turn into a potentially lucrative investment.

Of course, this is hardly an investment strategy for one who is limited in terms of available capital. To purchase 5 or more residential properties simultaneously is hardly an option for one who can not afford them. But, for an aggressive individual with a lot of capital this could prove to be a wildly worthwhile investment.