Wholesale vs fix-and-flip: which deals fit you?

Two of the most common deal types you will see are wholesale assignments and fix-and-flip opportunities. They can involve the same house, but they suit very different investors.

What a wholesale deal is

A wholesaler puts a property under contract with the seller and then assigns that contract to a buyer for a fee. As the buyer, you pay the contract price plus the assignment fee, then close with the seller. Posts often say "assignment", "under contract" or "cash buyers only".

What a fix-and-flip deal is

A fix-and-flip is a property that needs work, bought below market, repaired and sold at or near its ARV. The post usually talks about condition, rehab needs and comparable sales.

Money and time

• Wholesale: you need cash or fast financing to close quickly, often within 7 to 21 days.
• Fix-and-flip: you need purchase money plus the rehab budget, and the project can take 3 to 6 months.
• Profit on a flip comes at resale; on a wholesale buy, your profit depends on what you do next (flip, rent or resell).

Risk to watch

• Wholesale: confirm the wholesaler really has the property under contract and that the assignment is allowed. Ask for the contract and verify the seller.
• Fix-and-flip: rehab estimates are often too low. Get your own contractor walkthrough and keep a contingency of 10 to 20 percent.

Which one fits you

If you have cash, a contractor team and time, fix-and-flip deals give you the most control. If you want to move fast and buy below market, wholesale assignments can be a good source, as long as you verify every number.

On PostedDeals you can filter the Radar by opportunity type to see only wholesale or only fix-and-flip signals in your states. Nothing here is investment advice; always do your own due diligence.