Kind of Stuck - Rethinking the Wholesaling Focus

3 Replies

So I am in the middle of reading "The Ultimate Beginners Guide to Real Estate Investing"

When I first started to pursue RE investing, I was really sold on starting out with Wholesaling . (Easier to learn and do - So I thought) After reading through a few chapters of this book, jumping to the related blogs in the Wholesaling chapter, along with the respective comments - I am starting to rethink this.  

Part of my concerns stem from the comments: It's a JOB, there is a ton of marketing to do, the costs of marketing, negotiating with 'desperate' sellers, and so on. 

My question I think is this....Aren't the beginning parts of Wholesaling - Fix&Flip - Buy and hold relatively the same? 

  • As a newbie to any of these strategies you are doing most of the work - JOB
  • In any of these strategies aren't you still always going to do a lot of marketing?
  • In any of these strategies aren't you still going to have to sit down and negotiate with a 'desperate' seller...In order to find a profitable deal?

Once you get past this then your exit strategy takes over...right??? The differences and complexities rear their heads.

Should I consider learning a few different strategies or still focus on wholesaling?

Thanks

Seems you're wising up!

Here's a novel idea, learn real estate before trying to deal in real estate. 

I've dumped a lot of properties in my day and I've never sent out letters to do it, never used the mail to find buyers either. I know it works, if done well, it also costs money and time.

My marketing in one word........networking!

Yep, by the time you learn how to wholesale, you'll want to do other things. :)

There are many many many investors around the country that make very nice livings wholesaling properties. I personally know some that have things set on autopilot and travel extensively. Wholesaling is not such a bad way to go. Little downside risk!

Originally posted by @Frank Matanane :
  • In any of these strategies aren't you still always going to do a lot of marketing?
  • In any of these strategies aren't you still going to have to sit down and negotiate with a 'desperate' seller...In order to find a profitable deal?

 Some people who flip or buy and hold buy mostly listed properties so these two points don't really apply. 

But you are right most of what people call investing is really a job. If you have a lot of money to invest, then you can invest passively. But most don't have enough capital to live off their investments. That is why people take on the job of real estate, to build that capital.