Wholesaling Real Estate Versus Dropshipping: Which Is Better?

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Wholesaling Real Estate Versus Dropshipping: Which Is Better?: There are many different ways to make money, but one of the two ways investors are leaning towards today is wholesaling real estate and dropshipping.

Wholesaling Real Estate Versus DropshippingWholesaling is when a wholesaler enters a contract to sell a property for a given amount in a specific period. Often, the wholesaler doesn’t own the property but may be required to invest some earnest money. The wholesaler can then sell the property, keep the profits, and transfer the contract to the buyer.

On the other hand, dropshipping is a business practice involving selling products without having them in stock. When you receive an order from a customer, you contact the supplier to ship the products to the customer. Dropshipping is often done through online retailers and is a popular business model for many new entrepreneurs.

So, which one should you choose? This article will explore the question in detail below.

  1. Ease Of Practice

The first thing you should look at when comparing the two is how easy each one is to get started with and practice. Wholesaling real estate is a bit more complicated than dropshipping. When wholesaling, you’ll need to find a property, have it inspected, negotiate a price, and then find a buyer who’s willing to pay for a price that’ll be profitable to you. Moreover, you may need to understand real estate in depth to be successful.

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Fortunately, many courses can help you get into the real estate business. Look for a reliable course that’s well rated and has proven to work. For example, you can go now to different resources to see how a legit real estate coach and course can help you get started.

Wholesaling Real Estate Versus Dropshipping
Wooden blocks with symbol of dropshipping concept

On the other hand, dropshipping is much easier to get started with. You can set up your store in a matter of minutes, and plenty of suppliers are willing to work with you. In addition, you don’t need to carry any inventory, so you don’t have to deal with storage space or shipping costs. And just like in wholesaling real estate, there are resources that can help you get started with dropshipping. Ensure you have a legit course that’s affordable and worth your investment. Read more about dropshipping businesses before getting started.

While wholesaling real estate and dropshipping have their hurdles to get started, dropshipping is definitely the easier of the two.

  1. Profit Potential

Next, you should compare the potential for profit in each business. When it comes to wholesaling real estate, there’s a lot of money to be made. However, profits aren’t always guaranteed as many variables are involved. For example, if you can’t find a buyer willing to pay your price, then you won’t make any money.

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But if you can time the market well, then you can make a lot of money with only one property. For example, you can enter a contract to buy a house at USD$150,000 and then sell it at USD$180,000, which is a healthy profit.

On the other hand, dropshipping has a bit more stability regarding profit potential. This is because you’re in control of your prices and don’t have to worry about finding a buyer. Most of the products don’t cost as much as real estate property, meaning you can easily find a buyer and make a profit. However, this also means that the profits per product or buyer are usually low, and you may need to sell many products to get a decent profit.

Therefore, while wholesaling real estate has higher profits potential, it’s also more unstable. Dropshipping is more stable, but the profits per product are usually lower.

  1. Starting Costs

While most people may say you don’t need any capital to start dropshipping or wholesaling real estate, it’s not always true. You may need to invest some money when wholesaling real estate to get started. For example, you need to set aside some money for an earnest payment for the property you’re trying to buy. In addition, you’ll also need some funds to cover the inspection and other miscellaneous costs.

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Dropshipping is often done online, which means you won’t have any inventory costs. However, you’ll need to spend money advertising your store and products. You also need to invest in a good eCommerce platform, which may cost up to USD$29 per month.

All in all, while both businesses have some starting costs, wholesaling real estate often requires more capital than dropshipping does. However, you may recover those costs by adding them to the selling price of the property.

Conclusion

So, which business should you choose? It depends on what you’re looking for and what suits your lifestyle better. Dropshipping is the way to go if you’re looking for a stable business with lower profit potential. However, if you’re willing to take on more risk for the chance of higher profits, then wholesaling real estate is the business for you.

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