What types of properties can real estate investors wholesale?
Real estate wholesaling continues to be a popular and highly profitable real estate investing strategy. While wholesaling is one of the simplest methods of making money in the property market, it offers a lot more flexibility and options than many realize. There are different levels or tactics for flipping houses in this way, including various types of properties which can be wholesaled. Here are some of those options…
- Single Family Homes
Single family homes are perhaps the most common type of property to be wholesaled. It is considered the most plentiful and easiest type of property to flip. Most people are familiar with single family homes and their dynamics. This makes for a good niche for high volumes of business, and pretty straightforward wholesaling. Small 1-4 unit properties such as duplexes, triplexes, and fourplexes can all fall into this category as well.
Condos & Townhomes
Being individually title units, condos and townhomes are another type of property which can commonly be wholesaled and flipped. The mechanics of wholesaling condominiums and townhouses are pretty much the same as single family homes. The main difference is the attached nature of these properties, and the associations. In some communities and some markets HOAs and condominium associations do not pose much of a problem. However, there can be quirks. Associations can have their own rules on property transfers, and who is allowed to buy, and not all are great with budgeting. Make sure you have clarity on these factors and how they could impact resale attempts, before you buy.
- Mobile Homes
Mobile homes are often overlooked in real estate investing, but can be just as profitable as any other type of property. Investors can wholesale individual used mobile homes, new mobile homes, and even whole mobile home parks. Despite financing for mobile and manufactured homes often being more limited than for the average single family home, there can be an even greater resale market due to the affordability factor. Remember that it is all about the numbers.
Apartment buildings can be wholesaled to. The size, dollar amounts, and number of units in multifamily apartment buildings may discourage many who are newer to real estate investing. Yet, the mechanics are really just about the same as with a modest single family home. The buyers, sellers, and financing may be a little different, depending on the size and price of the property, but it doesn’t need to be as complicated as some believe it is. You can wholesale apartment complexes of any size, and many savvy investors and funds do. It’s all about getting the right price and gaining the right connections.
- Commercial Real Estate
In addition to multifamily apartments investors can wholesale office buildings, retail malls, warehouses, and mixed use properties. Contract them at low prices, and flip them to other investors who will operate them for ongoing cash flow, or renovate and reposition them, secure new tenants, and then flip them again. It’s all about price and connections. Know your values, expand your connections, and get good at marketing, and you can wholesale anything.
Lots and Land
Vacant lots and land can be turned quickly too. That includes individual infill lots, parking lots, properties with teardown buildings on them, and large acreage. Often it is incredibly easy to not only wholesale these properties, but to reposition and market them better, and for a sizable, but reasonable profit. Some of the benefits of this niche can be low holding costs, fewer rules, and lower price points.
- Property Rights
Properties are often spilt up into various rights as well. That can help turn one asset into multiple ways to profit. Land can be leased, oil and mineral rights can be sold off, air rights can be auctioned off, and even access rights and timber can have a lot of value.
There are many types of property out there. You can wholesale them all. Often it is a lot easier than you think, once you know what to do, and build the right network. Be creative, keep an open mind, and look out for opportunities you may have ignored before…