I’d probably either wait until I had more saved or invest in a REIT
Originally posted by @Abel Rodriguez :
So I’m getting started on my REI adventure. I’ve created a phone number with google voice, and created a website, I don’t have much cash to work with so I figure wholesaling with a large emphasis on marketing would be the best place to start.
What would do differently?
What would you do with such a low budget of $5,000?
That's a little steep. See if you could buy something as an owner occupant under $100K by using 3.5% down FHA loan. Perhaps house hack with a roommate It will give you some landlording experience.
Or, just keep saving until you hit at least $15-20K, then buy something with 20% down.
Thank you for the quick response! That’s kinda what I figured would be ideal 15-20k. That’s the reason I figured I’d start with wholesaling. Relatively low start up costs. And get me more in touch with finding the deals. And build capital as I go!
@Abel Rodriguez that’s assuming you make money wholesaling. A lot of wholesalers don’t realize wholesaling is actually difficult. It takes a lot of time and money to do it properly. It’s also basically another job. You have to ask yourself if you want another job or if you want to make mailbox money (in smaller amounts) as a landlord.
My first flip I put maybe $7-10k into it. Partnered with my brother. Got a private money loan did the work myself and walked away with $30k when it sold.
Find a deal and have the willingness to do whatever it takes to get it done and you can multiply your money pretty quickly.
@Caleb Heimsoth that’s a very good point that I had considered as well. My long term goal is to be a buy and hold investor, the problem with that is the capital I have now I got from the sale of a spare car. Building capital is rather hard in my current position. That’s why I figured I’d take the risk and try to build capital with wholesaling. I do understand that’s it’s basically a full time job, and that I may not make any money from it. I’m also enrolled in a real estate license course. I just really wanted to try and get the ball rolling on essentially marketing and putting my name out there! Weather or not I make money, chances of meeting other investors because of my marketing as well as my involvement in my local reia group is pretty likely!
Wholesaling can be difficult, but I believe it is doable. I also believe that wholesaling can be a doorway learning multiple real estate investment strategies. I began wholesaling 13 years ago and it has taught me a lot about not only investment real estate, but also traditional real estate. It is a smart decision to begin with getting your real estate license and I applaud you for jumping in and starting to learn .
Are you considering starting a wholesale business yourself, or working for a wholesaler? If you are considering your own business, you might want to make sure you have a lot of potential buyer contacts, as a lot of the wholesalers I work with have a database of potential investors. If so, then you have to network network, network.
Thank you all for your information! As stated I am already on track to get my license. And yes I do plan on starting my own wholesaling business. I have already built a decently strong buyers list from networking with other wholesalers and simply putting it out there that I am starting to wholesale. My list is not very big (7 buyers) but my buyers have told me exactly what they look for in a property as well as what their specialties are. One thing that I plan on doing differently than most wholesalers is not asking for a ridiculous assignment fee. If I can get experience and know how out of a deal I’d be glad to take less on the profit side of things. In my book knowledge will always surpass income.
@Abel Rodriguez I am shocked no one said you should invest in the magnificent "bitcoin" lol
@Ola Dantis that is exactly the answer I got from my older brother when i spoke to him of REI. I simply shook my head and laughed. He was joking and knew id get a good laugh out of it.
Learn to market and learn your market. You can do both of those for less than 5k and some leg work.
Bitcoin just dropped like 10 percent so good time to buy if you believe it’ll go up again lol
What is REIT?
Originally posted by @Ismail A. :
What is REIT?
Google It, and you would know.
Abel, getting your RE license is a good idea, but keep in mind there are costs associated with holding a license. IF you can find a brokerage with no office fees, there are still plenty of costs. OAR, GTAR, NAR all require dues, at least yearly and some quarterly. There are also fees for the keybox access, to view properties. I am an investor too, and got my license to by my own deals, but now I work with other investors also. I don't want to talk you out of getting your RE license, but just know that Oklahoma requires agents to work under a broker. Good luck!
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