{"id":171,"date":"2023-03-16T16:11:46","date_gmt":"2023-03-16T23:11:46","guid":{"rendered":"https:\/\/homeflippingworkshop.com\/?p=171"},"modified":"2023-11-13T09:01:02","modified_gmt":"2023-11-13T16:01:02","slug":"flipping-vs-wholesaling","status":"publish","type":"post","link":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/","title":{"rendered":"Flipping vs. Wholesaling: What\u2019s the Difference?"},"content":{"rendered":"\n<p>Glenn and Amber Schworm are passionate about helping&nbsp;everyday people create their best life through real estate investing. They\u2019ve flipped over 700 houses with complete success valued at over $65 million and counting, and still actively flip over 100 houses a year. Through coaching and mentoring, they have taught thousands of people their simple home flipping formula at their&nbsp;<strong><a href=\"https:\/\/homeflippingwo.wpengine.com\/\">Home Flipping Workshop<\/a><\/strong>. Glenn and Amber continue to flip houses as they help everyday people change their lives by teaching them how to \u201cFind, Fund, Fix, Flip and Hold\u201d properties to create immediate cash flow and assets that generate long-term passive income. They live in Schenectady, NY with their four kids.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Flipping vs. Wholesaling: What\u2019s the Difference?<\/h2>\n\n\n\n<p>Building wealth through Real-Estate comes in many forms. For you, that\u2019s&nbsp;<em>great<\/em>&nbsp;news, as it means that you now have a variety of avenues through which you can acquire wealth on the other side of your financial investment.<\/p>\n\n\n\n<p>Two of the most popular forms of investment are \u201cflipping\u201d and \u201cwholesaling\u201d. The popularity of flipping in particular has blossomed in recent years as a result of popular television shows and inspiring \u201cbefore\u201d and \u201cafter\u201d images online.<\/p>\n\n\n\n<p>But is traditional flipping the right route for you and your skillset? Or perhaps you\u2019re better suited for wholesaling? Let\u2019s break down the differences.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wholesaling and the Art of the \u201cDouble Close\u201d<\/h2>\n\n\n\n<p>Wholesaling describes&nbsp;<em>buying a house<\/em>&nbsp;or&nbsp;<em>putting a house under contract<\/em>&nbsp;and then&nbsp;<em>selling that contract to another cash investor for a profit.<\/em><\/p>\n\n\n\n<p>In simple terms, instead of turning over and flipping an entire home, you\u2019re only \u201cflipping\u201d the paperwork.<\/p>\n\n\n\n<p><strong>How does that work? Let\u2019s take a look at an example:<\/strong><\/p>\n\n\n\n<ul>\n<li>You come to the realization that a property is being put up for sale. They seek $75,000.&nbsp;&nbsp;<\/li>\n\n\n\n<li>You do your due-diligence. You use our<strong>&nbsp;Home-Flipping Evaluator<\/strong>&nbsp;to determine the potential value and profit margins of flipping the home.<\/li>\n\n\n\n<li>You offer up the asking price of $75,000 and put it under contract.<\/li>\n\n\n\n<li>With your knowledge of what the home&nbsp;<strong>can be worth<\/strong>&nbsp;to someone looking to flip, you offer up the contract for sale.&nbsp;<\/li>\n\n\n\n<li><strong>ANOTHER BUYER<\/strong>&nbsp;purchases the contract from you for $95,000 with the plan to flip it themselves, and make a further profit on their end when they sell the property.<\/li>\n<\/ul>\n\n\n\n<p>By following those simple steps,&nbsp;<strong>you\u2019ve now made $20,000 in profit<\/strong>&nbsp;for yourself, quickly, and with very little or no investment of capital on your end. There\u2019s minimal risk, because&nbsp;<em>you never actually own a piece of property<\/em>. You\u2019re doing what\u2019s called \u201cassigning\u201d.<\/p>\n\n\n\n<p>Wholesaling is legal in nearly every state, and will result in&nbsp;<em>over a million dollars for our company this year<\/em>&nbsp;just in assignment contracts. Finding a deal, and selling it to somebody else.<\/p>\n\n\n\n<p>The amount made varies from case to case. Most commonly, we make around $18,000 per deal, but the sky\u2019s the limit! We\u2019ve known this particular tactic to be worth in some instances over $250,000 for<em>&nbsp;one commercial building.&nbsp;<\/em><\/p>\n\n\n\n<p>Requiring little to no investment of capital, alongside minimal risk and a quick turnaround, it\u2019s a great option for those with the right skill set.<\/p>\n\n\n\n<p>So what is the right skill set?&nbsp;<\/p>\n\n\n\n<p>First and foremost you need to be a fantastic salesperson. An excellent marketer. You need to be quick to find those off-market deals and jump on them before anyone else. Afterwards, once you\u2019ve found the deal, you need to find a cash buyer and work to keep the deal together. Prevent it from being stolen. Ensure you have the right paperwork, and close it outright.<\/p>\n\n\n\n<p>For those willing to put in the work, wholesaling can be a really fantastic source of wealth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Traditional Flipping: More than What you See on TV<\/h2>\n\n\n\n<p>The more commonly known form of flipping is through purchase and renovation. Spending and investing capital into a home with the intent to increase its value, and putting it back onto the market for a sizable profit.<\/p>\n\n\n\n<p>When we first began flipping houses, we decided that we were going to do the work ourselves. While possible, we recommend hiring out contractors to handle the physical work instead, and handling the oversight and management of the project yourself. In doing so, we are able to ensure the best quality work and a beautiful home created and constructed by professionals.<\/p>\n\n\n\n<p>It\u2019s possible to make large amounts of money going this route. For instance you may purchase a house for $95,000 and spend $50,000 on contractors and renovations, bringing your total investment to just under $150,000. From there, selling that house for $200,000 will bring you nearly $50,000 in profit when the dust settles.<\/p>\n\n\n\n<p>The important thing to remember, and perhaps most overlooked by many seeking to begin flipping houses, is that there IS risk involved.<\/p>\n\n\n\n<p>You won\u2019t see it on TV, but in real estate,&nbsp;<strong>we make our money when we buy.&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<p>The most important thing we teach our students is the way to buy a house correctly. You need to be very intentional when looking at costs to ensure you\u2019re buying at a deep enough discount to make the endeavor worthwhile. If you manage to do that, you can really hedge your bets in such a way that mitigates the risk of the investment.<\/p>\n\n\n\n<p>Because here\u2019s a little tip:&nbsp;<strong>You are going to have problems with the renovation.<\/strong><\/p>\n\n\n\n<p>Perhaps a major error occurs, costing you and your company $10,000. With an anticipated profit of $50,000, an error such as that is no more than a major inconvenience, while still allowing your company to walk away $40,000 richer.&nbsp; However, when you\u2019re expecting only a $10,000 or $20,000 profit from the jump, you\u2019re now looking at the potential for losing money, or worse, breaking even. Profit out the window. By ensuring that you have bought at a deep enough discount, you\u2019re safe in the event of an unforeseen error such as this.<\/p>\n\n\n\n<p>Flipping in the traditional sense is much more labor intensive than wholesaling, but it\u2019s a form of investment in which you hold hard assets; incredibly valuable when taking volatility into account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Should I Flip? Wholesale? Both?<\/h2>\n\n\n\n<p>Flipping and Wholesaling are two fantastic ways of investing into real estate and creating wealth for you and your family.<\/p>\n\n\n\n<p>There is some overlap in the skills required for each. You\u2019ll need a keen sense and understanding of the market, and a useful way of acquiring an evaluation of each property and its potential to both yourself and to buyers as a profitable renovation.<\/p>\n\n\n\n<p>Wholesaling requires a little more work socially in managing people, sales, speaking, and the upkeep of the deal. Little to no investment capital needed, but a whole lot of hustle.<\/p>\n\n\n\n<p>Traditional flipping requires handling budgets and finances, managing personnel, acquiring the initial capital to purchase the property outright, and then pulling it altogether to sell for a profit.<\/p>\n\n\n\n<p>Flipping and Wholesaling may not be easy, but they are both absolutely things that you can do in order to create immediate cash flow and begin your journey toward passive income and wealth.<\/p>\n\n\n\n<p>If you\u2019re interested in learning more and getting a complete guide to real estate investing including Flipping and Wholesaling strategies, come to our next&nbsp;<strong><a href=\"https:\/\/homeflippingwo.wpengine.com\/\">Home Flipping Workshop<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Glenn and Amber Schworm, experienced house flippers and mentors, have transformed over 700 houses and empowered countless individuals through their Home Flipping Workshop. With a focus on helping everyday people create wealth through real estate investing, understanding the differences between flipping and wholesaling is essential for finding the path that best aligns with your unique skills and financial goals.<\/p>\n","protected":false},"author":2,"featured_media":2820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[30],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Difference Between Flipping and Wholesaling | Home Flipping Workshop<\/title>\n<meta name=\"description\" content=\"Insights for choosing whether you should get into flipping or wholesaling. What&#039;s the difference? Is one more profitable than the other?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Differences Between Flipping &amp; Wholesaling\" \/>\n<meta property=\"og:description\" content=\"Flipping and Wholesaling may not be easy, but they are both absolutely things that you can do in order to create immediate cash flow and begin your journey toward passive income and wealth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/\" \/>\n<meta property=\"og:site_name\" content=\"Home Flipping Workshop\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-16T23:11:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-13T16:01:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dave Shrein\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dave Shrein\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/\",\"url\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/\",\"name\":\"The Difference Between Flipping and Wholesaling | Home Flipping Workshop\",\"isPartOf\":{\"@id\":\"https:\/\/homeflippingworkshop.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg\",\"datePublished\":\"2023-03-16T23:11:46+00:00\",\"dateModified\":\"2023-11-13T16:01:02+00:00\",\"author\":{\"@id\":\"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/81b1fea463466bb06484ed9971ef10ae\"},\"description\":\"Insights for choosing whether you should get into flipping or wholesaling. What's the difference? Is one more profitable than the other?\",\"breadcrumb\":{\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage\",\"url\":\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg\",\"contentUrl\":\"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg\",\"width\":1200,\"height\":512},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/homeflippingworkshop.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Flipping vs. Wholesaling: What\u2019s the Difference?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/homeflippingworkshop.com\/#website\",\"url\":\"https:\/\/homeflippingworkshop.com\/\",\"name\":\"Home Flipping Workshop\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/homeflippingworkshop.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/81b1fea463466bb06484ed9971ef10ae\",\"name\":\"Dave Shrein\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/eed7d687836f1b919b7b218a30a54c66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/eed7d687836f1b919b7b218a30a54c66?s=96&d=mm&r=g\",\"caption\":\"Dave Shrein\"},\"url\":\"https:\/\/homeflippingworkshop.com\/author\/davetheblocksagency-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Difference Between Flipping and Wholesaling | Home Flipping Workshop","description":"Insights for choosing whether you should get into flipping or wholesaling. What's the difference? Is one more profitable than the other?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/","og_locale":"en_US","og_type":"article","og_title":"The Differences Between Flipping & Wholesaling","og_description":"Flipping and Wholesaling may not be easy, but they are both absolutely things that you can do in order to create immediate cash flow and begin your journey toward passive income and wealth.","og_url":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/","og_site_name":"Home Flipping Workshop","article_published_time":"2023-03-16T23:11:46+00:00","article_modified_time":"2023-11-13T16:01:02+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4.jpg","type":"image\/jpeg"}],"author":"Dave Shrein","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Dave Shrein","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/","url":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/","name":"The Difference Between Flipping and Wholesaling | Home Flipping Workshop","isPartOf":{"@id":"https:\/\/homeflippingworkshop.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage"},"image":{"@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage"},"thumbnailUrl":"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg","datePublished":"2023-03-16T23:11:46+00:00","dateModified":"2023-11-13T16:01:02+00:00","author":{"@id":"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/81b1fea463466bb06484ed9971ef10ae"},"description":"Insights for choosing whether you should get into flipping or wholesaling. What's the difference? Is one more profitable than the other?","breadcrumb":{"@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#primaryimage","url":"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg","contentUrl":"https:\/\/homeflippingworkshop.com\/wp-content\/uploads\/2023\/03\/Artboard-11-copy-4-2.jpg","width":1200,"height":512},{"@type":"BreadcrumbList","@id":"https:\/\/homeflippingworkshop.com\/flipping-vs-wholesaling\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/homeflippingworkshop.com\/"},{"@type":"ListItem","position":2,"name":"Flipping vs. Wholesaling: What\u2019s the Difference?"}]},{"@type":"WebSite","@id":"https:\/\/homeflippingworkshop.com\/#website","url":"https:\/\/homeflippingworkshop.com\/","name":"Home Flipping Workshop","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/homeflippingworkshop.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/81b1fea463466bb06484ed9971ef10ae","name":"Dave Shrein","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/homeflippingworkshop.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/eed7d687836f1b919b7b218a30a54c66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/eed7d687836f1b919b7b218a30a54c66?s=96&d=mm&r=g","caption":"Dave Shrein"},"url":"https:\/\/homeflippingworkshop.com\/author\/davetheblocksagency-com\/"}]}},"_links":{"self":[{"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/posts\/171"}],"collection":[{"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/comments?post=171"}],"version-history":[{"count":2,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/posts\/171\/revisions"}],"predecessor-version":[{"id":2347,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/posts\/171\/revisions\/2347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/media\/2820"}],"wp:attachment":[{"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/media?parent=171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/categories?post=171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/homeflippingworkshop.com\/wp-json\/wp\/v2\/tags?post=171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}