Wholesale in Newport News/ Virginia Beach

Wholesale in Newport News/ Virginia Beach

Fort Eustis, VA · Member since 2016 · 54 posts · 18 votes

Hi all! I'm coming back with an update (a little shift in perspective from my first post) and also some tips/advice.

I initially came to BP with the a goal of buying and holding MF units in the VA Beach and Newport News areas. Due to the fact that I don't have the capital, I approached my dad because he's had some (failed) rental properties and experience under his belt; not to mention, the capital. Now, although he has the money and experience, I have sufficient more "book knowledge" and have done more research that can supplement his experince. I told him that if he puts up the capital, I'd be more than willing to do all the due diligence and work that it would take to find the deals, tenants, find contractors, etc. without his paying me because I would gain significant experience in the process and simultaneously, he would profit. After some more conversation with him, he mentioned he might look into wholesaling as opposed to rental properties because the ROI on rental properties is very minimal (and I don't disagree). Like stocks, rental properties can be more of a long-term investment whereas with wholesaling, one can make quicker money in larger amounts. Both avenues require a substantial amount of work, both require time and effort, both require a set of skills (different for both), but with rental properties, one can expect a steady flow of income (hopefully), every month, on the same day, with minimal work. With wholesaling, if one isn't actively searching for deals and bringing people together, there's no cash flow.

These are juse speculations based on research I've been doing and people that I have talked to because again, I don't have a bit of actual hands-on experince under my belt. Any tips on which route I should look into pursuing or is this more of a personal, subjective decision?

Thanks in advance for the input! :)

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Investor · Portsmouth, VA · Member since 2016 · 289 posts · 107 votes
9y

hey @Jessenia Munoz I am not too far from you. If you have the capital to get started I would say Buy/Hold would be the way to go. From what i've heard/researched wholesaleing takes a lot of work to get started and, as you stated, if you're not actively searching for deals all the time, then you will not make much. Best of luck to you!

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  • Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
    9y

    Hi @Jessenia Munoz , 

    There isn't a "best" strategy when it comes to what to spend your time on on in REI. It comes down to what fits you and your situation best. You don't always know until you do it. I started with wholesaling and flipping, but quickly discovered that flipping wasn't for me and stuck with wholesaling. The nice thing is that you can learn and try the different strategies throughout your career and sometimes something pops up that's better suited for a certain type. A lot of people start out with wholesaling as it's (in theory) a quick return and can be done for a lower cost. You could consider starting with wholesaling as it has a much shorter beginning and an end and then keeping an eye out for rental properties and picking up a deal when it comes. Both are very doable and turn a profit most of the time. All the best

  • Fort Eustis, VA · Member since 2016 · 54 posts · 18 votes
    9y

    @Brett Snodgrass that's what I figured! I was also entertaining the idea of maybe doing a mixture of the two as a way to expose myself to both methods. I can start of with one or two wholesale deals and then use our earnings from that to fund one or two units and perpetuate that strategy to see how it works; maybe we'll find that we like this cyclical strategy or we may drop one method and stick to the other. So we'll see! 

    Thank you!

  • Fort Eustis, VA · Member since 2016 · 54 posts · 18 votes
    9y

    @Brett Snodgrass Just one more thing Brett..... Do you recommend I acquire a RE license if I choose to go the wholesaling route? I never wanted to get one because there are a number of restrictions and limitations that a license will present but if it's going to keep me from potentially getting sued, it's worth it!

  • Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
    9y

    @Jessenia Munoz Another thing that you'll find has mixed responses:) Here's mine...

    It has been my professional experience that having a real estate license has done nothing but helped me in business. The biggest advantages are that you get full access to the MLS and can save a ton of money on brokering your own deals instead of having to pay out commission fees on each deal you buy or sell. The disadvantages I hear people say, in my opinion don't hold that much weight. Having to disclose everything in your transaction is a GOOD thing and having a higher standard of professionalism over your head will only help you serve people better. If it was up to me, I'd say get your license it's far worth it!

  • Fort Eustis, VA · Member since 2016 · 54 posts · 18 votes
    9y

    @Brett Snodgrass Makes complete sense! Thank you for that perspective.

  • Investor · Portsmouth, VA · Member since 2016 · 289 posts · 107 votes
    9y

    hey @Jessenia Munoz I am not too far from you. If you have the capital to get started I would say Buy/Hold would be the way to go. From what i've heard/researched wholesaleing takes a lot of work to get started and, as you stated, if you're not actively searching for deals all the time, then you will not make much. Best of luck to you!

  • Fort Eustis, VA · Member since 2016 · 54 posts · 18 votes
    9y

    @Tiffany S. Thanks for the words! I'll let you know what I decide to do :)

  • Wholesaler · Upper Marlboro, MD · Member since 2010 · 7 posts · 0 votes
    9y

    Jessenia,

    I would like to network with you assist you in finding deals both wholesale and Flipping.  Please contact me to discuss what type properties you are interested in.

    Milton Vickers

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