buy houses

You heard me.

Wholesaling is, however, an excellent job that will give you amazing amounts of experience in the real estate investing field. It is a great way to make connections and network, learn the ropes of investing (especially the numbers) and make some serious cash.

Why Wholesaling is Thought to Be an Investing Method

Wholesaling is the only job I can think of that is 100% related to real estate investing. In wholesaling, you learn how to negotiate prices, find deals, find motivated sellers, talk to investors, run quick numbers, and understand the physical condition of a property. What other job teaches you all of this about real estate investing?

None I can think of.

Because you are working with investment properties and you are talking mostly to investors and because you are coming out with a nice chunk of change in your hand at the end of it, it’s easy to think that being a wholesaler means you are an investor.

Let’s let good ‘ole Wiki confirm what an “investor” is:

An investor is a person who allocates capital with the expectation of a financial return.

Source: Wikipedia, http://en.wikipedia.org/wiki/Investor

Nowhere in there does it say the person has to work for the financial return. Second, wholesaling is well-known for being a way to get into “real estate investing” with little to no money down, i.e. no capital.

So how does “working” and not having to use any “capital” constitute “investing”? It doesn’t. Wholesaling is not investing.

Why do I bash wholesaling being called an investment method?

Some because it just drives me crazy to see so many people claim to be investors just because they are wholesalers, but more importantly, it makes me realize that those who think wholesaling is investing don’t understand the difference …read more