Whether you're already knee-deep in property deals or at the starting line with aspirations of grandeur, there's one question that may linger on your mind: Which is more profitable—house flipping or wholesaling?
Today, we delve into this burning query with none other than Matt DuPre, a seasoned real estate virtuoso with two solid decades of dabbling in house flips and wholesaling ventures. Get cozy, because this could be the episode that lights the path to the freedom you've been craving.
Matt's Real Estate Investing Journey
Matt's experience is drawn from 20 whole years in the wholesaling business. Nothing short of impressive. In the early days, without the treasure trove of YouTube tutorials and podcast pearls that we have today, how on Earth did he pioneer through this now-celebrated investment strategy? Let's hear from the man himself:
"Rolling back the years, my initiation into wholesaling was rather serendipitous. Back when I was deeply engrossed in the tech world—working for giants like Oracle and Salesforce—and flipping houses was a side hustle I turned to in my spare moments. But an encounter with a contractor opened me up to the nimble art of contract assignments, and voilà , $3,000 landed in my pocket without breaking a sweat. That accidental foray blossomed into a realization: Wholesaling, flipping paper rather than houses, is not only simpler but quite lucrative."
Why Matt Chose Wholesaling
Wholesale real estate gifted Matt the luxury of quick cash without the perils of market swings or costly overruns—pivotal moments that push his compass needle away from flips to more wholesales. His experience signals a vital insight: Sometimes, all it takes is a flickering light bulb of an idea to ignite a successful career pivot.
From the first assignment fee being $3,000 to Matt climbing the ladder with subsequent deals gradually increasing from $8,000 to a hefty $108,000 from a single assignment fee. Not too shabby for a deal involving a small apartment complex.
Now, here's the kicker. The average deal, especially in the ever-evolving Texan market, could pocket you an assignment fee averaging around $10,000. Of course, the stakes and earnings in cities like New York or LA could surge well above these figures. Yet Matt remains astute, focusing on fixer-uppers that manifest into winning deals.
"The beautiful thing about wholesaling is that your fee scales with the deal's sweetness—an advantage over the fixed percentages in the real estate agent's world,"
How Matt Finds Wholesale Deals
The way Matt finds deals ranges from a wide variety of sources. From using apps like DealMachine to scouring government lists of properties tangled in code violations, tax delinquencies, or probate the possibilities to find motivated sellers are endless. Once upon a time, he relied on snail mail, which he might revisit as marketing trends are cycling back
"Indeed, with the recent clampdown on texting, direct mail could shine again as a beacon for lead generation, free from the confines of spam filters that plague other communication channels," Matt muses.
Matt's Real Estate Outreach
In his journey, diversification in outreach remains a key strategy. Whether it's cruising neighborhoods for potential deals or engaging a legion of cold callers to reach out to buyers, Matt reminds us that placing all your eggs in a single basket is a business risk to be wary of. In his words, "You must pivot quickly, embracing foundational strategies like mailing to ensure a wide-reaching net for opportunities."
Over the past two decades, Matt has amassed over 150 deals. And during the unsettling economic climate brought by fluctuations in interest rates, Matt's advice has never been more relevant—to stay nimble, pivot, and educate both yourself and the sellers on the reality of the markets in this ever twisting industry landscape.
Wisdom for Real Estate Investors
Matt offers a parting wisdom nugget for those sitting on the starting blocks, looking to make their foray into wholesaling:
“There’s no shame in treading both the stable ground of your day job and the fertile soil of wholesaling. Block time in your day, respond to leads, engage in negotiations, and keep that belief flickering—that first deal will cascade into confidence.”
So, roll up your sleeves, and let this be your catalyst to embark on that gratifying path toward financial freedom.
