Here is a recap of a question I received from an investor regarding wholesaling:

“I have been investing for 6 months. I am considering fixing and retailing properties. My problem is that wholesalers seem to be pushing properties with no profits. After I buy a house, refurbish it, and list it for retail there’s nothing left for me. Where is there any profit for me after I pay 6% to realtors and the 30% Uncle Sam wants for his short-term capital gains... More about: Why do Wholesalers take the "whole" profit?

When I first started buying real estate, I made a conscious decision to avoid rentals because I had no interest in being a landlord. Like you, I heard all the horror stories of nightmare tenants, late night plumbing problems, lead paint hassles, and evictions. I wasn't interested in putting a lot of time and effort into screening tenants, dealing with vacancy and repair, and going to court.

In fact, the very first book I bought on real estate was Lonnie Scruggs' Deals On... More about: Real Estate Investing - Are You Landlord Or Investor?

Of course, repairs! Why bother with some technicalities?

Because if you don't, the IRS will. Everything you spend to fix the real property is classified is either repairs or improvements. The cost of repairs is a current year expense, fully deductible. The cost of improvements is a capital expenditure, only partially deductible through depreciation.

Let's look at an example. If, after your tenant moved out, you spent $5,000 replacing various broken things (windows,... More about: Repairs or Improvements?