Co-wholesaling is a process of getting you entire wholesale summary from other local wholesale investors as it may fetch quick returns by partnering in joint ventures. It may bring financial loss when done in an appropriate manner.
Zack Childress reviews whether co-wholesaling is profitable when you buy a property or give it out for rent.
Value of the property
Every investor consider his house as an asset, but the prevailing thought is that whether it is better to rent or buy a property as value of the property may appreciate or depreciate in a span of time. It is inappropriate to compare mortgage payment with a monthly rent as well as one cannot estimate the maintenance amount accurately as it repairs may occur anytime.
When you are middle-aged, it is not to wise to purchase a property as we don’t know what’s in store for future. You can prefer going for lease properties as it has an option of moving to another location when lease ends or continue to reside by extending the lease period. Buying a property actually costs you more as you need to invest on repairs and other damages when occurred.
Large down payment indicates you are financially secure and sound and you are eligible to become a home owner by investing on purchasing a
property of your own.
When you are going to stay in the same location for 5 years or more, then you can go ahead and purchase a property and reside as well. But if your job or circumstances requires frequent shifting from one place to the other, then go for rental option.
Tax and fees
When you are buying a house, it is important to keep in mind as well as allocate funds for insurance, fees, mortgage repayments and tax.
Renting a property
If the investor chooses to sell the property then you can avail capital gains.
Investment property scam: The
buyers were promisedthat properties were held for future sale and will be rented out to ensure cash flow for mortgage payment but it resulted in proprietor flipping the properties and inflated the values to the borrowers and faked the lenders stating that properties were bought individually which were actually bought as group purchase. There was no property maintenance as there were no tenants ending up in non-performing loans as original values were inflated because the borrowers never paid their down payments.
How to find the scam: inflated appraisals, pseudo income, large number of properties purchased, borrowers reside in different states and scam can be prevented by data analysis.
Zack Childress, the
founder of REI quick cash system has written articles for the real estate investors to get a better idea whether to opt for rent or purchase a property. Investors who have an idea on either can look into it and get enlightened. The Zack Childress automated wholesaling system allows the investors to co wholesale without using money for beginners in real estate.