Hello BP Community! I'm new to real estate investing, and was looking for some insight on the best strategy to start with as a new investor. I've been told wholesaling is the way to go starting out. Any insight would be greatly appreciated!
Also, any local investors in the PG County or Baltimore area that wouldn't mind helping a newbie figure it out, please DM me! I'm anxious to get started, but only with the correct knowledge and guidance - I know this business makes or breaks people.
Hey Jamal, welcome to BP! The best strategy really depends on your goals e.g. single family buy and hold can be great for long term wealth building and is a fairly stable asset class where as flipping can get you capital quickly but can be riskier. In terms of wholesaling, there is an ongoing debate about whether it is technically legal or not (if you search wholesaling in the search bar I believe Brandon Turner put out a large article about this).
Also, I know there is a real estate investors meeting in Baltimore. I live right outside of Baltimore but haven't personally been as my work hours fluctuate. I would recommend starting there and meeting/networking. Best of luck!
Hey Jamal, like Benjamin said, the best strategies do depend on your goals. If money isn't unlimited (which I have to assume is the case for 99% of investors starting out) I'd suggest learning as much as you can while you save what you can, then partner with someone who has more money, knowledge or both as a way to get into the business. As far as wholesaling, if certain rules are followed, it's not illegal, it's simply assigning a contract that you make with a seller to another person which is completely legitimate based on contract law. However, I've heard many professional wholesalers say on the podcast that to be a GOOD wholesaler, it's not something you go into as a newbie. They say this because in order to provide good quality deals to your end buyers, you need to be very good at assessing repair costs and ARV as well as negotiating the initial contract so that there's still room for the buyer to make a profit after your fee.
That being said, I plan on buying distressed single family and small multi family properties to either hold as rentals or flip depending on the deal. There and several private money lenders who will finance all of the cost upfront even with new investors if it's the right deal. Again, your goals may be different which will change what strategy fits best for you, but that's just my two cents.
Hope this helps and welcome to BP!
@Benjamin Seibert Thanks for your response! Yes - my ultimate goal is to build up a strong portfolio of rental properties. I'm aware of the private money / hard money options for getting started, but I just want to make sure I do my due diligence before jumping into anything. I've definitely taken my time to educate myself on the different strategies and techniques to find deals - now that hard part is actually doing it! LOL
I will definitely look into Baltimore REI meetups - thanks for the suggestion!
Hey, welcome to BP. Local real estate investor meetups are very valuable to be a part of. Go to biggerpockets.com/events to find an event in your area or if there is not one in your area create one and invite other real estate investors.
@Jamal Gaskins Welcome to BP!
Wholesaling is a decent way to get started if you are looking for a JOB. To be a good wholesaler, it requires a lot of work. Just FYI, best of luck to you with whatever you decide to do.
@Kyle Johnston Thank you for your response - I've done a lot of research and self-educating on the different strategies of RE.. I've heard the same about wholesaling (that your numbers need to be on the money!), if your numbers are too far off, then your credibility is shot as a wholesaler. I've attended seminars for a lot of this stuff - but there's nothing like rolling up the sleeves and getting down & dirty - that's where the best lessons are learned.. I'm trying to find someone to possibly do some joint venture deals to speed up the learning curve.
Who knows, maybe I'll be wholesaling your next future single family or multi-unit ;-)
Welcome @Jamal Gaskins ! As many people have already mentioned on this thread, you should really figure out what your goals are and be specific about them. You mentioned that you want to build a strong portfolio of rental properties. Do you want to invest in SFH or MFH?
You said you want to start wholesaling to start, which is good, but are you wholesaling for other people to build their portfolio and not yours? Maybe you start with wholesaling to build capital to buy deals?
Find out what your end goal is and work backwards on what steps you need to do to achieve that goal or goals. It seems like you already have the right attitude to get this journey started! Partnering with people is another great way to gain experience. Good luck to you and enjoy the journey!
@Jamal Gaskins welcome to BP. Lots of people here from the greater DC Baltimore area. There are a lot of Investing groups in the area too. Many of the people you meet here will be at some of the local investing clubs. Seach REIA or Meetup to find them.
Wholesaling is hard work and hard to accomplish. Whether it is the best way for you to start depends in part your resources; Time Knowledge and Money.
If you have limited resources, then you have limited options.
I would say study local markets, understand the details and find investors that can partner up with you.
Attend real estate meet ups and find a wholesale team that you can join.
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