What Is Wholetail Investing In Real Estate?

real estate investing strategy

September 3, 2021

Basics

Flipping

Strategies

Wholetail is an investment strategy that is a mix between Wholesale and Retail. An investor purchases a property at a discounted price, as if they were wholesaling the property; but rather than wholesaling it, they complete minimal upgrades themselves and attempt to sell it on the MLS to an owner-occupied buyer (like a retail transaction).

As a real estate investor, these deals can be quite profitable because you’re looking for a property that requires very little work upfront, so you can turn properties over with less rehab costs and potentially faster.  

Timing wise, a wholetail deal can take anywhere from 30 days to 90+ days, with the largest amount of time going towards marketing the house after listing it on the MLS and closing time for the end buyer.

Many people consider wholetailing to be a safer, in-between strategy than either wholesale or a complete fix-and-flip. It gives you the potential to make a larger profit than you might with wholesale, but also doesn’t carry the same inherent risk that a full fix-and-flip would. However, wholetail opportunities are rare and cannot be counted on as a consistent source of profit in your overall business plan.

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