Bob Fraser explains why real estate wholesaling stays profitable: wholesalers never tie up their own capital, so they dodge market swings and can pivot fast. Last year's slowdown from August to November happened because flippers had to sell old inventory before buying new contracts. Activity picked back up in 2023.
people are still making money doing wholesaling. What's kind of neat about wholesaling is that since you never have your money out in properties, right, you really minimize the market risk, right? If the market's going up and down, you just need to adjust to wherever it's currently at, and you can do that in real time because you don't have any capital deployed. That is one other really nice factor about the model. The one thing that does happen is when the market initially shifts, a lot of your buyers are stuck in their old inventory. So a lot of your buyers are stuck in their old flips. They, they wanna buy from you, right? Because that's how they earn their money, but they can't because they need their other stuff to sell. That's normally a 3-month lag. We had that last year, August through November-ish, somewhere in there, right? We slowed down, but we, we certainly didn't end. We still were transacting quite a bit. It's just some of our buyers were locked up with previous inventory. And then this year we've been roaring into 2023.
