Wholesale vs Buy and Hold

[Account Closed]

I'm new to BP and this week I've been playing around with the calculators. I was looking for deals in the Houston Texas area, primarily in northwest Harris County ( Cypress, Fairfield, Bear Creek ). I'm looking for deals that can be done with little to no money.

I've been trying out all the calculators, from House Flipping, Rental Property and Wholesaling on the MLS in these areas. My question for you all, as a new investor should I start off wholesaling or buying and holding?

[Philip McCollum]

Originally posted by @Account Closed:

@Reece O. and @Jay Craig thanks for your replies. My ultimate goal would be to buy and hold but like most new investors I may lack the funds to start that way. Plus I know I lack the knowledge. I'm wondering if like Jay, wholesaling first would be a good way to start and gain the knowledge and experience. When I enter my numbers in the wholesaling calculator I always enter a small profit for myself. I figure that at first the experience and what I learn is more valuable than making big profits. I want to eventually make an awesome income. 

I'm self employed and work from home so any spare time I have I like looking at the MLS and playing with the numbers.

 I have never done wholesaling, but my instinct is it takes just as much or more knowledge and technical competence to wholesale than to buy and hold. The only difference is the type of experience you need. To buy and hold you need to have good property management skills to manage the property effectively ( get the most rent out of the property while maintaining the property's value). For buy and hold it helps to be able to find a great deal, but an average deal on the purchase of the property can still be profitable in the long term if you effectively manage the property. For wholesaling you really need to be able to find great deals to purchase. If you find average deals nobody will buy from you. On the other hand, you don't need property management skills to wholesale (though it could help, as you could put together a business plan to help show investors why the property is a good buy). That said I don't think you will pick up property management skills wholesaling.