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Buy The Best, Wholesale The Rest

Wholesale Real Estate Growth Mindset

At OfferMarket, we like to say: buy the best and wholesale the rest

This is actually a really important concept. We surveyed several real estate wholesalers and we asked them what's your primary strategy is it strictly to wholesale? Is it to buy up the best properties that you get under contract and wholesale the ones that you know don't fit your fix and flip or rental strategy? Or is it you know some some mix where you're really not sure yet you're just getting started? Ultimately what we found was that the majority of wholesalers are only focused on wholesaling.

The reason why we think that that's not the right strategy -- or I should say it's not the best strategy in this industry -- is because if you're buying great properties that you get under contract, you can build wealth. Wealth that is -- obviously if it's a rental -- very passive income. If you're flipping there's opportunity for significantly higher profit than your typical or average assignment deal.

It also aligns you with your buyers so if you're thinking about deals first and foremost as, you know:

  • Do I want to buy this property?
  • Do the numbers make sense as a flip?
  • Do they make sense as a rental?
  • Do I want to hold on to it?
  • Do I want to figure out the financing?

That puts you in the same mindset of your buyers on your buyers list. So try thinking about whether or not that strategy might work for you. You can de-risk it. You don't need -- if you've never done an investment deal where you actually are on the title, or an LLC that you own is on the title of the property -- you can absolutely reduce the risk of doing your first investment property deal by starting an LLC and bringing in experienced members. Maybe mentors, people who you trust, people who you've gotten to know in the industry, maybe even someone on your buyers list.

You can learn from their experience -- they have a rolodex of contractors and they understand the right way to to handle different situations that may arise through the course of a renovation.

So the concept 'buy the best and wholesale the rest' it's an extremely powerful concept. The best wholesalers in our network use this strategy. It's ultimately how they have a diversified stream of income where they're...

  • Building their rental portfolio
  • Building their fix and flip volume
  • Building their wholesale volume

all based on a deal by deal evaluation. Does it make sense to buy this property or does it make sense to wholesale it to someone for whom it's a better fit for their strategy?

Go on, we challenge you to apply this strategy in your real estate investing business. Let us know how it goes and share the learnings with your friends and colleagues.

We ❤️ Wholesalers

OfferMarket is dedicated to helping wholesalers build wealth through real estate. We know wholesaling can be a grind, and we also strongly believe it's your competitive advantage.

Whether you're looking to buy your first rental property or your 100th rental property, we are here to help you grow and build wealth through real estate. Get fix & flip loans, DSCR rental loans from OfferMarket Capital LLC, our hard money private lending division. Post your off market assignment contracts on our investment property marketplace. Learn more about OfferMarket for wholesalers.