Can wholesaling houses be used to build passive income?
Is Wholesaling Really Real Estate Investing?
While real estate wholesaling is the only way many investors ever want to engage the market there are those that frequently forego the benefits in search of passive income investments. Some investors are taught by rental property gurus that buy and hold income properties are the only way to achieve passive income. Some have even been programmed to the point of proclaiming that wholesaling isn’t even real estate investing.
However, savvy individuals continue to see incredible investment returns from wholesaling houses. Many would never consider giving it up for lessor ROI, or inferior amounts of income.
While some property wholesalers may request quite modest returns, others have been earning an average of $45 to $100k per house flipped according to RealtyTrac.
Then total up how much more wholesalers make with multiple flips each month and year, and the compounding returns this creates. Ice this with the dramatically reduced risk wholesalers enjoy and it’s easy to see who is making the most money.
But Wholesaling Houses Doesn’t Produce Passive Income, Right?
More money is always great, but some are still adamant that in contrast to being a rental home landlord, wholesaling doesn’t produce passive income. Or does it?
For a start, anyone that has handle rentals as a DIY landlord knows that this is anything but a truly passive income source. Plus, it brings more hours, risk, and prevents location independence.
But you have to keep finding houses to wholesale right? Yes, but as a buy and hold rental property investor you have to keep finding new acquisitions, tenants, and worry about fixing properties and daily management and maintenance. Which is less work?
Besides the ROI and reduced time and risk in wholesaling property, there are also actually a number of ways streamline the process and generate passive income.
Creating Your Wholesale Cash Machine
Real estate investors can now efficiently leverage help through outsourcing platforms like oDesk.com to build a team. These assistants as well as other strategic partners can be leveraged for consistent streams of deals, and end buyers.
Investors that keep themselves out of the day to day hands on, and act as true business owners, or investors can then enjoy passive income proceeds. Real estate moguls like Sensei Gilliland of Black Belt Investors have even designed systems for this like The Ultimate Real Estate Cash Machine.
So with systems that auto feed in fresh deals, a good marketing system, and a strong buyers list passive income can be gained from real estate wholesaling. In fact, it is pretty easy to argue that this is a far more passive investment plan than being a landlord. With access to unlimited cash for funding deals from Best Transaction Funding there is really no limit on volume either.
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