Kevin Guz explains what exactly wholetailing is and why it can be a great place to start as a real estate investor. With minor repairs to a wholesale deal, you can list it on MLS and sell for close to retail value, without the work of a full rehab.
Mike: Welcome to The We Buy Ugly Houses Show, where real investors share real investing stories and lessons from the trenches, where our team buys thousands of investment properties each year. Now, let’s meet today’s host.
Kevin: Hi, my name is Kevin Guz, and I’m a real estate investor and HomeVestor franchisee here in Dallas, Texas, and it’s my pleasure to be the host of The We Buy Ugly Houses Show today.
And today I want to talk about something that perhaps will help you in your desire to become a real estate investor. And that is, how do you get started? If you’ve looked at all of the different types of real estate investing, whether it’s rentals or rehabbing or wholesaling, and perhaps nothing has worked for you or seem to work for you or seem to get you excited, let me offer you another option in real estate investing, that may be exactly what you need to get started. And that option is what we call wholetailing. And it’s a cross or kind of a hybrid between wholesaling and retailing. And here’s what it is.
Wholetailing is basically an opportunity for you to purchase a house, and do a light rehab on that house. Meaning not a complete rehab. If you’re intimated by the idea of a full remodel, don’t worry. With wholetail you go in, you clean it up, you landscape it perhaps, you maybe put some paint, maybe some carpet, maybe some minor cosmetic things, and then you turn around and you sell that house on the MLS, on the retail market.
So you can kind of see where it’s a blend between wholesaling, meaning you’re going to sell a house that’s not fully rehab, and you’re going to sell it close to a wholesale price, but it’s also a blend of retail. You’re going to sell the house on the retail market, i.e. MLS, and kind of closer to a retail price. So you kind of get the best of both worlds. The best of wholesaling and the best of retailing.
Now, what are the advantages? The advantages are, of course it’s less work for you. Maybe you already have a career and your real estate investing is something you do on the side. Well, it’s less work when you’re wholetailing, you’re not doing those full exhaustive rehab to take months and months on end and multiple contractors. You’re doing minimal work just to get the house cleaned up and presentable in order to sell. It takes less money. Instead of a $50,000 rehab, you may be doing a $5,000 rehab. So if you’re just getting started out and your capital is a little tight, maybe the wholetailing model works for you and your limited resources.
Takes less time. Imagine just painting and landscaping and putting down your carpet obviously takes a lot less time than it would to do a complete rehab on a house. And maybe that fits you with your busy schedule on your full-time career that you may already have.
And finally, if you’re just getting started out, a wholetail process is a lot less intimidating than a full rehab process. You’re not dealing with plumbing and electrical and air conditioning and roofs, but you’re probably dealing with things you’ve done before in your own house in terms of painting and landscaping and simple cosmetic upgrades. So you don’t need a lot of great experience to be a wholetailer.
And then finally, you’re going to sell that house on the MLS. So don’t worry, if you don’t have a large network of wholesale buyers, you don’t need one. You’re going to put it on the MLS with the help of your local realtor, and you’re going to sell it on that retail market.
So the third and final point is, why is wholetailing safe for you as a new investor? Well, we’ve hit a lot of those points, but I want to drive them home. You don’t need that exhaustive buyer’s list of wholesale buyers. If you’re just starting out and you don’t have a lot of wholesale buyers, don’t worry, you’ve got the MLS to place your wholetail house on. Also, you’re a new investor, you may not have access or the ability to buy houses real deep that would allow you to wholesale them. Well, you don’t have to buy as deep when you’re going to wholetail that house. Spend a little more for that house, you can put just a little more money on it, and you can place some nice profit.
And then finally like we said, it requires little experience, little time and little capital, and compared to full rehab houses. So that also may be appealing to you as a new investor just starting out with limited resources like money and time.
So in conclusion, think about it. Rehab is a great way to get into real estate investing, rentals are a great way to get into real estate investing, wholesaling is a great way to get into real estate investing. And if none of the three of those apply to you or quite get you excited, why don’t you take a look at wholetailing as the way you get into real estate investing?
It’s great talking with you today, and I look forward to talking with you again real soon on The We Buy Ugly Houses Show.
Mike: Are you looking to get started in real estate investing? Or take your investing business to the next level? HomeVestors, The We Buy Ugly Houses folks, is the number one home buyer in America, where our franchisees purchase thousands of houses each year. Many of which started with little to no experience. If you’d like to chat, please visit uglyopportunities.com/contact.
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