As a newbie starting out with no money for investing, I thought wholesaling was the best bet for me. But I've been listening to older podcasts for about a week and a half and learning more about buying and holding for rental income....and the most recent one I listened to discussed the advantage of low costs of land investing.
I'm in NYC, so I'd probably start out with some virtual investing in my hometown of Cleveland. Does anyone have any thoughts about the best route to take as a newbie with no money AND a virtual investor or if that is even possible?
Unfortunately there is not going to be a way for you to invest out of state without any experience or capital.
Everyone needs to ad value in a given situation. Being new and out of state you won't be able to ad any sweat equity to the deal so naturally capital would be the only other thing you could put into it.
I would look into becoming a realtor in NYC. You can earn money while gaining knowledge and experience. After awhile you will have capital, knowledge and experience to start investing in your own projects.
Thanks for the input James! I am currently an agent here in NYC....so guess I'm headed in the right direction.
I'm also thinking of farming the surrounding areas...New Jersey, maybe a little upstate.
Wholesaling land and getting list backs can be a very profitable niche as an agent. Learn the zoning and land use in one niche area. Figure out how to value raw law or tear downs. The challenge is to find builders you can trust and have a long term relationship with. You need to get list backs and that is the challenge.
When working with New Builders, I try to control the entire process... Control the contract, entitlements, funding and then the list backs. I generally don't trust builders till I know them for a long time. The problem in land is circumvention. The way to avoid is to 10x your efforts and dominate your marketplace. Tie up every piece of land in your niche market.
In any case, there is a steep learning curve for working with land. It maybe easier to wholesale flips or apartments. Whatever you do, do ten times more than what everyone else is doing.
I'm so late on this! But thank you for the response and insight!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.