Wholesaling vs Buy to Hold/Rent

[Forrest Brown]

Hi, 

I have begun doing research on the many different options there are to invest in real estate.  I know I would like to start buying and holding properties to rent.  However, I would like some input on what people would recommend to get started in RE.  Should I begin by wholesaling, or just go straight into looking for properties to buy and rent out?  I appreciate any feedback. 

[Alex Franks]

Originally posted by @Forrest Brown:

Hi, 

I have begun doing research on the many different options there are to invest in real estate.  I know I would like to start buying and holding properties to rent.  However, I would like some input on what people would recommend to get started in RE.  Should I begin by wholesaling, or just go straight into looking for properties to buy and rent out?  I appreciate any feedback. 

First thing to look at is your financial picture. Can you afford to hold rentals. DO you have reserve funds if things go wrong.

When  I would travel and speak about real estate.

Question 1

Simple question how many people want to buy rental homes ?

Answer Every ones hand would go up.

Next question How many people have at least a  years worth or reserve funds put back to live off if some thing happens.

Answer

Maybe 2 or three  3 hands ( keep them up IM trying to prove a point here )

Next question if you purchased one property today do you have reserve funds ( for me and my area $6k per deal ) one or two people would still have there hands up.

My response  to those holding up their hands at this point . Buy rentals your ready to invest .For the rest of the room, you are not ready. Which is okay. Success is from planning ahead, preparing , and not luck .  First lets work on our financial picture. Credit score, reserve funds .  So we might focus on wholesaling, or potentially flipping.  Building up cash reserves.

I'm no guru but I can tell teach you how to lose everything twice. Start to really become wise ,and listen when you lose you funds and others. Nothing like building up a portfolio of 37 homes to lose them all. So I'm speaking from the heart, not a book I read. I still love this business ,and can talk about real estate for hours. It just has to be taken serious and as a business.  Taking certain steps for continued success.

Alex