To wholesale or not to wholesale, that is the question!

To wholesale or not to wholesale, that is the question!

New to Real Estate · Washington state · Member since 2023 · 15 posts · 10 votes

Hi! A little bit of background: 

My partner and I each owned a home (single family) which we then turned into rentals when we bought another place together (where we also rent out 2 rooms!). At first this just seemed the smart thing to do from a financial standpoint but we hadn't considered it the start of our real estate investing business - until now :) 

I have been binging bigger pockets podcasts and have started to read books - I freaking love @beardybrandon !! And here's where we areat when thinking about our goals:

Ultimately, we want to build a portfolio of rental properties. We already have 2 single family homes, and the next tier to explore would be small multi-family homes, i.e slowly ramp up to more units per property as we learn the ropes of managing multiple tenants. For now, I think keeping it local would be better, but I'm open to investing long distance down the road once we're more comfortable with our systems/ process/ team.

As for how to scale up, I'm still debating on what we should pursue next. As we all know, it all comes down to finding the right deals, and having the right strategy to finance it. 

Wholesaling could be an opportunity to learn the skill of finding discounted or off-market properties, so maybe we should start there (if anything to challenge ourselves out of our comfort zone!), and then we could use those profits to invest in our next buy and hold. 

On the other hand, we have equity that we can tap into, and a family member with some capital looking to invest with whom we could partner, so maybe jumping into a BRRRR strategy would make sense. In that case I'd be more comfortable with a property that only needs light rehabbing since I have zero experience in this department.

Either way it will be a learning curve and a challenge for this social introvert to network!

Any advice/feedback/leads/resources? Any locals in Western Washington willing to connect?

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  • Real Estate Broker · Seattle, WA · Member since 2017 · 139 posts · 82 votes
    3y

    @Christina Greaves you guys are on a great path!  That's the way many of us started out (before forums like BP came along). If you're in a position to purchase something that will cashflow, that's probably the better bet. I see wholesaling as kind of similar to flipping...only leading to short-term gains. It could be a good way to build capital to use as a down payment, but it's likely not your best long-term strategy to build your portfolio, unless you just like the thrill of getting properties under contract and then trying to figure out whether you want to buy or find another buyer you can assign it to.  That being said, please let me know about any wholesale deals that either I or one of my clients might be interested in!

  • Member since 2020 · 38 posts · 9 votes
    3y

    If you're open to doing a little rehab on a BRRR method, then I don't think you need to really diverge between wholesaling for BRRR. You can look at homes that need some work, then choose if you want to WS or BRRR - depending on the level of distress.

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