When you’ve got a good buyer lined up, you’ve already helped lessen the risks. Other steps you can take to reduce risks include putting contingency clauses into the contract and ensuring your deposit isn’t too large. However, risks can’t be totally avoided in any kind of investment, including wholesaling. So, let’s take a look at what the risks entail.
RISKS
You don’t get a steady income or benefits.
If you’re someone who prefers counting on an expected income every couple of weeks, you need to decide how important that is. Due to the nature of the process, you can’t predict when you’re going to find a great property, line up that buyer, and have all the paperwork go through. You’ll also be in charge of funding your own retirement account and making sure you have health and other necessary insurance so being financially literate is mandatory. As with all forms of investing, if you're not well-versed in handling finances you will never prosper. However, there are some ways to lessen the stress that can come with an unsteady income, such as ensuring you put some of your profits into a savings account that can help cover you if you hit some leaner times. It’s also helpful to take a good look at your financial habits to make sure your money is going to the right places and you’re not overspending. Also, keep in mind that “unsteady income” doesn’t mean “less income.” Yes, you might sometimes have to wait a little longer for payday, but a great investment deal can make it well worth the wait. At the time of writing this book, my biggest wholesale deal made me $60,000 richer, my smallest deal was $5,000. The latter
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