Easier to Wholesale Small deals OR Big Deals?

[Luke Weber]

I had a friend comment that he wants to start wholesaling, but wants to start with big deals with bigger assignments.  I honestly don't see any difference in wholesaling a multi million dollar house or a $10k fixer, the mechanics are the same, just a different seller and buyer base.

What are your thoughts?  Easier? Harder? Scarier? (obviously commercial does have different nuances so I am really asking regarding residential - although you can still wholesale commercial deals too).

[Will Fraser]

Hey @Luke Weber!  In my opinion I'd think that smaller value properties are MUCH easier to dispose of, especially in the current climate.  The more knowledgeable the buyer is the harder it CAN be for a wholesaler to make the profits they see advertised.  This doesn't necessarily apply to wholesalers who work towards mastering their craft on all sides, but those are few and far between.

The buyer-base for $100,000 homes is fundamentally different than for $1,000,000 homes within the same market.  If your friend can dig deep into understanding how real estate is valued and can consistently find deals that would make sense at the larger value mark, then the assignment fees should be larger, at least proportionally so.  This knowledge is hard-won though, as you well know through your flipping work I'd say.