Which is better?

Question

Hi Everyone,

My question is which is better to start out in for some one fresh out of high school and begining college.  Whole sale, buy and hold, or buy and flip properties?

Thanks for any answers

Scott Costello · Answer

@Jordan Kenyon Because you are so young I would recommend finding a job in real estate that would help you get to know the industry from the inside out.  I can't tell you how many times I've read about a success story on BP where the person had prior experience in real estate or construction.  Another big field where I see people having RE success is from marketing.

Hope that helps

Kevin Fletcher · Answer

@Jordan Kenyon

It all depends on what resources you have and what market your in.

Wholesale- Do you have the money and resources to do direct mail, drive for dollars? Would you be confident talking to motivated sellers and helping them solve their problems? Do you have buyers to sell the deals to? Knowledge of contracts, llc's, and contract assignment?

Buy-and-Hold - Do you have money for a down payment? Do you have a job or reported income for the last two years? What are the cap rates in your area? What are the market trends in your area (are people coming or going). Would you be able to deal with leasing and contracts? Would you be able to handle bad tenants?

Flip -  Do you have cash? Do you have access to cash from a private or hard money lender? Do you know Contractors, Agents, Wholesalers? Can you manage people and projects? Are there opportunities on the MLS for flips? Are there other ways to buy at 60-70% percent of ARV (After Repair Value) - repair costs?

You have to answer all these basic questions, and I'm sure I left out a lot. If you can answer more questions on one of these investment strategies, maybe that'd be the place to start in your research.