Sale /wholesaler/ Buy and Hold

[Gabriel Turner]

Hello everyone ,

       My name is Gabriel I live in the Pittsburgh area Im really excited about starting my Real Estate  business I've been reading so many books and researching tones of Real Estate  information . Im currently in the process of getting my Real Estate license. Honestly I have no idea were I should start?? Should I wholesale / buy and hold for passive income or work as an agent to learn the business from experience??

[Account Closed]

Your question is should you wholesale? 

I think wholesaling and investing is one in the same. 

I don't know who started using this word " wholesaling" in real estate (I have been investing for 4 decades and that word never was discussed.

 But if you think about it, investors don't usually buy at "retail", investors to be successful will always attempt to buy or make offers below market value (retail),  (unless they are doing a 1031 exchange and they can afford to pay top price since because they are saving so much in capital gains taxes or they may be running out of time to identify a replacement property, or they might pay retail if the property has utility for their business or personal needs).  

There is no future in investing at retail prices.

I think the word "wholesaling was coined by some smart guru conducting seminars. I also see new investors, those who have not done their first deal yet are talking about wholesaling. They say "I'm a "Wholesaler", right!?

@Gabriel Turner talks about "Finding wholesale deals" Where do you look? MLS, the newspapers. Would the ad say "For Sale Wholesale Real Estate, call now I want to get rid of some of my equity and give up some of my potential profit"?

In my opinion a wholesale deal is created not found on the MLS or advertised in the newspapers.

An investor looking to create transactions below market value (known as wholesale) will have to use his knowledge, his cunning, his negotiating skills, personality and alternative financing techniques (also know as creative financing) to make the deal work.

To FLIP properties for a profit could also be known as making a short term profit by controlling real estate below market value (wholesale).

Some tips:

• Make offers often subject to assignment and public auction (sold as is all cash)
• Using "bank days" (gives you more time to find an assignee)
• Build in an automatic extension (so that you do not have to ask for it when you need it)
• Always ask for Contract Candy in your offer (seller incentives; all the furniture, cash back etc)
• Use hybrid offers (limited partnership with the seller)
• Get right of possession (so you can show the property, clean it up a little, prep for auction sale)
• Multiply your offers (have agents make offers on your behalf on expired listings, no need to look at them, offer 25% below the expired listed price, subject to inspection. A great way to open negotiations)

My thoughts