In this video, real‑estate investor Joe Holmes argues that newcomers who lack experience, capital, or industry connections should consider wholesaling rather than flipping. He begins by asking three screening questions—experience, money, and contractor/agent/lender connections—to identify who is suited for wholesaling. Holmes defines wholesaling as pulling lists of distressed or motivated sellers, cold‑calling them, and negotiating a contract that can be assigned to another buyer. He outlines a basic phone script and suggests hiring a virtual assistant to pre‑qualify leads. Holmes then compares wholesaling to flipping across three dimensions: cost (wholesaling requires minimal upfront expense, while flipping demands purchase price, rehab funds, and MLS commissions), risk (wholesaling risk is limited to rejection or hang‑ups; flipping risk involves miscalculating after‑repair value, rehab costs, and market exposure), and experience (wholesaling provides rapid hands‑on learning and can improve hard‑money lender terms after multiple deals). He emphasizes the need for thick skin, not taking rejections personally, and encourages viewers to watch a follow‑up video on list generation and to bring deals to him for purchase. The video ends with typical YouTube calls to action (like, subscribe) and an invitation to reach out for further help.
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In today's video, we're talking about why wholesaling might be a better alternative than actually going into a flipping business. Coming up next. I hear from new investors all the time. Joe, I want to start flipping. I always ask them these three questions: Have any experience? Do you have any money? Do you have connections to contractors, agents, or lenders? If you said no to all three of these, then wholesaling real estate. Is going to be a better choice for you. Hear me out. My name is Joe Holmes. I've not only flipped hundreds of houses in Southern California, I've also been a broker, investor, and mentor for over 40 years. I want you to be successful. That's why I made this channel. But you need to take action. Start by liking this video and subscribing so that you never miss a thing. What is wholesaling? Wholesaling is literally pulling a list Of sellers, homeowners, and whether they're in trouble or not in trouble, you pull a list and you simply start to cold call them. And the conversation over the phone is pretty much the same as door knocking. Hi, my name is Joe. I'm a real estate investor. We're buying 2 or 3 houses in your neighborhood. We need to deploy some more money. We're just calling to find out maybe if you were interested. in selling your home? No, I'm not interested. Do you have anything else that you're interested in selling? Maybe not this one, but something else? No. Do you have a friend that's interested in selling their home, or do you know somebody that might be interested in selling their home? So keep talking to them, keep asking them questions, keep the conversation moving forward. Let's break down why wholesaling might be better for you than flipping. Number 1, the cost. It's going to cost you less money to put that wholesaling team together. You can even do it on your own. You can pull these lists for a minimal amount, and then it's just literally getting on the phone and talking to people. If you want to ramp up that business, then you're probably going to hire a virtual assistant who's going to warm up those leads for you. So they're calling, they're going through all the nos till they get to a yes. And then once they get that yes, they send it back to you so that you're calling and talking to somebody that's actually expressed an interest in selling their home. Do me a favor and hit that like button so that I know that you're following along. Now, if you compare that to flipping, flipping is a totally different animal. You're going to have to obviously buy the property, whether you're paying cash or whether you're using hard money. There is money coming out for this transaction, and then you have to pay money for the rehab. So that's going to cost you some money there. And then at the end of the day, you put all that together, you put it on the Multiple Listing Service, and you sell the property and pay both agents a commission for selling that property. So the, the big difference is just a little bit of money doing the wholesale route Versus you're definitely going to have to have some money if you're flipping a property. Number 2, the risk. The risk in wholesaling is you get a no, you get a hang-up. That's your biggest risk in wholesaling. In flipping, make sure that you've determined the after-repair value, the purchase price, the rehab, All your costs, everything has to be calculated before you end up closing that property. There's a lot of risk involved when flipping properties. It's not the end of the world. It's not brain surgery. You just need to have your systems in place so that you're successful from the purchase to the sale of that property. Number 3, the experience. And you can only get experience by actually doing. And yes, it's going to be scary the first time. It gets better after that. So experience also plays into a hard money situation. Hard money lender is going to give you favorable rates and terms if you've done 10 or more properties. So again, you have to start with that process and get that Get that going as quick as possible. Don't be afraid to do it. Move forward. Comparing that to like wholesaling experience, that you can come to this channel. I've got lots of information on wholesaling. I've got scripts on wholesaling, what you need to say. Very low bar on wholesaling, cold calling. You just need to have thick skin. Because there's a lot of people out there, they're going to tell you no in a really negative way. Make sure you don't take that personally and internalize that. It's just somebody on the phone that's frustrated with their situation. Just hang up, move on to the next caller. What do you think? Are you still going to dive in and start flipping? Or do you want to know more about wholesaling? If you do, I have the perfect video right here. I show you exactly what lists to pull so you can start marketing to motivated sellers. Once you get a deal locked up, bring it to me and I'll buy it from you. If you have any other questions, feel free to reach out. I'm always here to help.
