Buy and hold vs. Flipping deals?

[Guillermo Beraun]

Hello everyone,

Can someone explain, from a wholesaler point of view, what are the main considerations / differences between structuring a deal for flippers vs. buy and hold investors?

Thanks!

[Tim G.]

Depends on your market.

For me, the word cash flow is like a unicorn. Spoken of but never seen, so more often than not a deal will be sold as a rehab. In the rare case the numbers look remotely attractive for a rental it does take a different approach to sell.

Rehabbers (okay, good ones) can walk a house and in 30 minutes tell you yes or no. Simple as that.

A buy and hold buyer will need more time to think on it usually. They want to see rent rolls, know the area, look at the lease if the tenant is still living there etc... Its a more long game decision so it takes more thought. That and buy and holders are usually of a different personality type than flippers so they don't just pull a trigger as fast. Some do, but it seems rare. *At least in my market*