Hello! I’m new to real estate but I’ve been doing a lot of research on flipping houses. I haven’t done my first deal yet but I’ve been saving up to buy my first property at an auction coming up and I have a friend who kind of knows about real estate who is willing to partner with me. However, I also have read about wholesaling and went to a seminar on it. My question is, would it be better for me to start off wholesaling first? Is it worth it? Or should I continue with my plan of just flipping houses?
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
8y
It's hard to compare the 2. One is a low risk, low margin strategy. The other is high risk, high margin strategy. It would also depend on what you like doing. Do you like talking to people and putting deals together? Or do you like building things and seeing them develop. Personally I'm a sales man so I would do the wholesaling. You should also look at lease options.
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
8y
It's hard to compare the 2. One is a low risk, low margin strategy. The other is high risk, high margin strategy. It would also depend on what you like doing. Do you like talking to people and putting deals together? Or do you like building things and seeing them develop. Personally I'm a sales man so I would do the wholesaling. You should also look at lease options.
Investor · Atlanta, GA · Member since 2015 · 57 posts · 17 votes
8y
From what it seems you are saving capital to purchase your first flip wholesaling, is the best way to me because that's exactly what am doing building a brand and capital to fix n flip also, buy and hold.
You can't really decide starting out where you want to start. Why? Because you have no idea what type of deal you'll find and which seller will call and/or work with you.
This is why you need to network network network with local investors so you have someone to buy the ones you can't handle.
And wholesaling is not actually an investment technique. It is a way to sell properties. If you buy something and do nothing to it, mark it up and resell it - that's considered a wholesale. Deals like that are actually hard to find so you may not be selling all that many wholesale, anyway.
But network and find properties, then decide what you'll do with them.
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Brierra Johnson visit 3 local flippers and 3 local wholesalers. Tap their brains for an hour or so each, and after these meetings you should have a great idea on which one fits your personality/goals more.