Why Flipping is Easier than Wholesaling
Written by Viktor Jiracek on Oct. 17th 2019
This is a controversial opinion that goes against what most people think.

I think it's actually easier to flip deals than wholesale them. 

Let's start with working definitions of each of the words before I get into specifics. 
>Flipping is when you purchase a real estate property, fix it up, and sell it. 
>Wholesaling is when you put a real estate property under contract and sell it to an investor -  so you never truly own the property.

Lots of people use those words interchangeably which isn't correct. 

And I've done both. 

When I started out my real estate investing career, I started out as a wholesaler. 

My first wholesale deal, I made about $3k. My second wholesale deal, I made about $3.5k.

That's when I decided to switch over and focus on flipping. 

When it comes to wholesaling, it's truly a numbers game. I've heard that it takes 30 to 50 leads to get a deal. That's what my experience was to.

For flipping, it takes anywhere from 12 to 15 leads to get a deal.

Would you rather talk to 15 people to get a check? or would you rather talk to 50? 

That's part of the reason it's easier. 

The other part is your compensation. 

For me and my deals -- on average-- I make about $30k net profit. 

For the average wholesale deal, you make about $5k.

So if you break it down as a cost per conversation -- 
For flipping... you can say that you make $2k every time you talk to a prospective seller. 
For wholesaling... you can say that you make $100 every time you talk to a prospective seller. 

So which is easier? 

It's not only that wholesaling requires you to do more work, but then you also earn less for the work you do!

Sure there's hurdles when it comes to flipping which includes renovation, financing, etc, but the total compensation takes all of that into account. 

Let's say you want to hit six figures per year with your real estate business. 

It's a valid goal. It's possible. I know because I've done it. And I've taught others how to do it.

For Wholesaling... again it's an average of $5k per deal. You need to do 20 deals for the whole year.

For Flipping... again it's an average of $30k net profit per deal. You need to do 3-4 deals for the whole year. 

As you can see, it's a whole lot less work. 

That's why I slowly transitioned from wholesaling to flipping. 

Don't get me wrong, there's a type of person that's better suited for wholesaling and more power to them in their real estate journey.

I just want to open up your eyes to all the potentials when it comes to real estate investing.

If I can illuminate the paths ahead of you, then you can pick the path that's best for you. 
But before you get started into it, you should know what your options are and their benefits / pitfalls. 

Viktor Jiracek

Viktor Jiracek helps people start and grow their real estate investing businesses.  He is an expert at helping people get clients using online methods and making things super simple to understand.
If you're interested in starting your own real estate or scaling up and getting clients then definitely reach out and request a free strategy session today.
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