I read many posts from new investors here on BP and many of them think that wholesaling is the easiest and fastest way to get started to build up funds. I am curious as to what some of the experienced or seasoned investors did to get started and if you are doing the same thing or something different from when you got started.
If your new to real estate ( say within 6 months ) what are you doing and is it working for you? By working I mean making money.
I will start: I started in RE in 2007 working with a turnkey provider and to this day I am still working with a turnkey provider. I have personally sold over 500+ homes to investors since when I started so I guess you can say I am still doing the same thing.
@Curt Davis - Many a times it depends on the situations you are in and what are the circumstances. I cam across good partners who were interested in flipping with me, so I started with them.
But then I had my financing lined up and everything was good to go. I know some of them has started with as HML route and then start buying properties as they build equity. So IMO it depends and would be situation dependent
Welcome to Biggerpockets!
Our model is buy and hold real estate through pure rentals, personals turned rentals all being class A properties so smaller margin but lower expenses. We got started through personal properties. We bought our first property using a VA loan and than gutted it. We rented it out when we left. Getting started in personal properties allowed us to get started with very little down. We have then grown through personal properties and pure rentals while both my husband and I working full time.
Congrats on your achievements. I look forward to learning a lot from you!
Check out the Blogs, Podcasts and forums. Biggerpockets community is truly awesome through their diversity (buy and hold, wholesalers, bird dogs, commerce, developers, flippers, agents, etc). Another unique resource is peoples personal blogs/websites that can be found in the signature. Within the above "groups" everyone has create their own niches. Many of us have create a website/blog giving more information about our model, etc. I talk about buy and hold, personal turned rental and self management from a distance.
Look forward to seeing you around Biggerpockets!
FYI - I am not new to BP nor am I a new investor. I posted on this thread as the title was starting out and was looking to get opinions from BPer's from when they started out.
Sorry for the confusion.
The very first thing I think is compulsory is buying your personal residence. I see a lot of newbies on here that are still in school and doing lots of reading, wanting to get into wholesaling, paying gurus, etc., but have no actual experience of buying a house or home ownership.
@Curt Davis Out of curiosity, did you own your house before you got into the turnkey business? That was your first deal. What was your situation before you started "working with a turnkey provider"?
For me, I came to Utah from the northeast with no job and relatively little money. However, compared to the northeast, even with my limited funds home ownership was attainable. We couldn't find a rental that would allow pets, so we started shopping for a house. I found this process so compelling and realized that, even having never done it before, I was more sophisticated than the young agent we hired. When we finally found a place and got it under contract, another buyer offered us $2000 to take our position. We didn't accept, but the seed was planted...
I moved to Memphis with my wife as I was a Chef for 11yrs before. I moved here and started working for a friend who owned the turnkey business and we lived in an apartment for 1yr then decided to buy our first home to live in. 4 months after that is when I started buying rental homes. I only have 19 so far.
I am a newbie. I live in Ottawa, Canada, so I am investing from out of state. Way out of state eh.
I started because I was looking for a way to create some passive income to subsidize my retirement. I began by shopping for REOs on HomePath, where I purchased a duplex in Fort Myers, Florida. A real disaster. I am kind of the poster child for what not to do as an investor. The advantage of being a ready fire aim kind of person is that I am not afraid to take action. The negative is that I make mistakes. Hopefully I can learn from them. The property is now fully rented and we are on track.
Despite the challenges, that first purchase planted the seed. I realized that I would need deeper pockets than I had if I wanted to buy more properties. That's when I decided to start wholesaling in order to subsidize my buy and hold.
I first reached out to a real estate agent that I met through HomePath. MLS was a bust for deals though. The tide is rising in SWFL and everyone seemed to want top dollar for thier property. I was kind of hoping that I could get some pocket deals, but the agent was not very supportive.
In January I started to do direct mail to get to the sellers direclty. I have been doing postcards to absentee landlords and probates. The results have been decent. I did my first flip in June. I made a mistake however, as I stopped marketing for sellers and focused on buyers when I got a property under contract. I had to start all over again, but things are going much better now and I have been making 2-3 offers a week since the beginnng of August. No takers yet, I sense some momentum building.
Hope this is the type of experience you were looking for. I would also be interested in hearing what other newbies are doing and how it is working for them. I am open to sharing whatever I have learned as well.
When I saw the title of this thread I immediately wanted to read it. I had a completely different opinion of what the topic would be. I am, however, pleased with the direction that the conversation took.
I was expecting to read a lot of tidbits or suggestions on how quick and easy it can be to get started.
To me there is no easy way to start and become successful. That of course will take countless hours and a ton of dedication.
I'm still a complete newbie. I have one seller that I'm talking to in hopes of wholesaling, but there is nothing etched in stone yet. But I think that I'm going the wholesaling route because of my lack of capital. Plus it is allowing me to gain experience that will help me once I transition into other aspects of the industry.
Welcome to the world of real estate.
Wholesaling takes some cash for you to obtain the rights to sell that purchase order.
If you buy from another wholesaler to then flip to your seller, most require some cash and some guarantee that you're buyer has the proof of funds. Don't let them know you have a buyer, right away. Eventually, you will have to tell them, but don't show your cards right away. They may stop dealing with you and get to your buyer and then you're out.
Also, educate yourself. Forget the gurus and the experts and the TV shows. Meet with the real investors to get the wisdom. Do some free work for them (intern), if they need it and you have the skills.
Learn to bird dog. That is the easiest and less risky, no money way to eventually get paid through real estate. That too does take some upfront costs and time on your part for gas, software/app access, etc. Nothing is free.
Everything changes when you get someone to show you the ropes!!!! So many people won't ask for help, they want to do it on their own! So many people ask for help but then don't try to bring any value, just want to be mentored for free! I would say for me it all changed when I got a mentor and started learning from him, but I tried my hardest to make myself an asset to him and not a liability!!!
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