Fork in the Road..to Wholesaling or to Flip?
So I sit here another aspiring real estate investor. I started with some seminars years ago, and very regretfully did not continue pursuing RE. For a few months I have immersed myself in podcasts, blogs, and books, soaking up all the information I can. I’m now extremely eager, but I'm still left wondering what direction to go. It's not lost on me that there are perhaps countless posts by new members traipsing in aimlessly, seeking a magic bullet, perhaps even asking this very question.
But today I find myself slightly discouraged. I've spent months trying to get acclimated and to gain some momentum as to the direction I should be heading. I listen with open ears and I have been focused on pursuing wholesaling. Then today I read some negative posts here that were rather derogatory about wholesaling, referring to wholesalers as unlicensed brokers and some other negative connotations. I can understand that when a seasoned investor hears a newbie say "I want to be a Wholesaler", it tends to elicit pretty strong opinions. Every new investor wants to be a wholesaler it seems, myself included, and I see where that might be annoying to some. I realize that it's a very time consuming niche that requires hard work and persistence. Many of the podcast that I listen to emphasize professionalism and the positive aspects wholesaling can provide for all involved parties, including the sellers. I'm feeling the mixed messages.
Having said all that, I am very interested to hear from some people that have some time in the game. The people who perhaps started with no working capital of their own to speak of. To hear from those who started with less than stellar credit situations. My question to those people is if you were starting today, and you were starting with nothing, in which direction would you head? Where would you focus your efforts? It seems to me even as a new guy, that Hard Money is plentiful right now. I too would like to build long term wealth. I recognize the benefits of passive income and a nice portfolio. I see that for myself as well, in due time. I have no illusions of getting rich quick. What I do want to do is supplement my income and in a relatively short time frame, figure out how I can best use real estate to bring in cash sooner than later and to make this a full-time career. I'm interested to see how many people would advise against starting in Wholesaling and instead recommend flipping properties as the better course of action.
Thanks in advance !
Mike
Hi @Michael Schaeffer ,
Don't worry about the negative posts regarding wholesaling. Just realize what investors have a problem with and how to do it right. Find real value for buyers and keep things on the up and up and you'll build trust instead of burn bridges.
As far as wholesaling vs flipping, that depends on you. I wholesaled my first deal, but then got into flipping only to realize that wholesaling was a better fit. Now I focus almost solely on wholesaling. It takes a bit of work to get a deal, but is doable if you're willing to keep at it. If you're handy or know how to work with contractors than you might want to look at flipping.
Either way both strategies are doable. Just start moving towards the one you think works best for you now and see it through to the end. You can always try the other another time. All the best!
Brett I have to tell you how much it means than you were the one to replied to my post. I'm a regular listener of your show and I'm glad to have this opportunity to tell you how much I get from it. The spiritual portions are especially motivational and uplifting. When I first came across your show, I was blown away by the fact that there were Christian wholesalers, who have a podcast, and they talk about wholesaling and being Christian wholesalers! Mind blown. Thank you so much for the reply! To hear from you is just the motivation I needed. Keep up the good work ! Thanks again !
Mike Schaeffer
@Michael Schaeffer Happy to hear that you've been benefiting from the podcast. That's why we do it. I appreciate the feedback. Feel free to ask me questions along the way. God bless.