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Is Less Risk Always Better in Real Estate Investing?

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If you ask me, wholesaling houses is the form of real estate investing that has the least risk involved. You won’t have to own the property, you won’t have to buy it, and you get the cash quick. It is indeed a good form of making money.

Flipping houses, the other term of wholesaling houses, has always been seen as a less risk if not no risk business. This is especially true when it is compared to rehabbing houses, which involves funding and having to hold a property for weeks or months. But does that make rehabbing houses less better?

This came to mind as the British Ministry of Defence (that’s how they spell defense there) unveiled an unmanned jet capable of striking long-range targets, and probably “even in another continent.” The Taranis aircraft, said U.K. officials, can be virtually undetectable as it is equipped with stealth technology. They also called it “a prototype unmanned combat aircraft of the future.”

Have you seen the movie “Stealth,” which stars Jessica Biel and never mind the male stars because you don’t care about them anyway? The unmanned aircraft in the movie was supposedly made to lessen the risk on men. It ends up making more problems – and casualties in the process – when its system gets messed up. Perhaps “less risk” isn’t always better. And in the case of “Stealth,” and hopefully Taranis doesn’t tread the same path, “less risk” isn’t always less risk.

In real estate investing, while wholesaling houses is seen as less risk, profits are also relatively “less” when compared per deal. Rehabbing houses, personally, remains a bit riskier but is more profitable and satisfying. Then again, that’s just my two cents.

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