My name is James. I’m a rookie real estate investor here in Mercer County NJ. I’ve just collected my first two big assignment fees via wholesaling. I’m looking to move on to fixing and flipping properties. Should I wait until I get a certain dollar amount or should I go for it?
Thanks in advance for any and all replies..
Hi @James Appleton . Interesting question. First you need to decide how you plan to buy. Are you thinking of all cash or using private lenders? If you have all cash, including rehab costs and contingency money, the sooner the better, It's going to take a while to find something that works. If you don't have enough to pay cash research private lenders and their requirements. I'm a big believer in the BRRRRRR method, which you can read more about in BPs. Using this method allows you to get into the action with less money out of pocket. But again, do your math. Remember the old saying, you make your profit when you buy, not when you sell. That means you need to know all of your costs and after repair value before buying. But as long as you do your due diligence and believe you have the money you need waiting is never the answer.
Bet of luck
Your answer was insightful and guiding. Thank you.
I’d be very careful about getting into your first major rehab in this construction/materials environment. There’s never been a better time to be a wholesaler with so much money floating around and so many uninformed people trying to get into rental property ownership. If I were you, I’d keep doing wholesaling, build your war chest, and then Brrrr your first property once contractors are hungrier and materials supply/cost has stabilized.
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