Capital for wholesaling?

[Greg R]

You're so right. Real estate investing and especially wholesale flips are not a get rich quick plan.

Some months you will make $2,000. The next month you might make $20,000. Then no payday for 2 months. Then a nice $30,000 month.
then a $5000 month. There is no way to keep the cash flow consistent.

That's why i highly recommend working towards generating cash flow with rental properties. You don't have to buy them. You can Master Leases.
But buying with seller financing or subject to is even better. Then you also control the equity too.

Wholesale Flip Deals will keep cash coming in to pay the bills while you work on increasing your cash flow with rental properties.

I agree with @CashFlowDepot

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Bigguns50]

A bit of a gem I think, from a friend of mine.

Several people have mentioned Detroit as a place to invest in real estate. My friend (I think he's 75yrs old) owned a very, very, successful hard money lending business focused on Detroit, MI. Short story....he was sued by a group of investors and lost everything. And I mean Everything ! It was a sad case that in my opinion should never have happened. But it did, and 5 yrs later he's back ! He's doing well.

He and an old investor buy houses in Detroit at the County Auctions. Detroit has averaged 15,000-25,000 Foreclosures a year since 2006.

They buy houses in Lots. The last buy was 92 houses. All for $1,000 each. 40% of those homes were occupied. He said all the occupants were happy to hear they bought the homes because every day they were afraid of being evicted. The previous owners all stopped collecting rent so the occupants were left in the dark.

My friend offers to sell the homes to the occupants for $6,000. $500 / mo payments for 12 months. They are responsible for the taxes accrued during the 12 months and any necessary repairs.

The rest of the homes are sold with the same terms.

He strongly advised against me getting into this. Why ? Security. As soon as a house is vacant in Detroit thieves strip it of everything they can sell. His partner, who has been an investor in Detroit for 30 years has solved this problem and has a strong infrastructure of security.

So there you go. Can this be duplicated ? Absolutely.