Whats up guys, I have been interested in getting into Real Estate investing for about 3 weeks now. Reading books like ( Rich dad poor dad, and " The Book On Investing in Real Estate With No Money Down"). I have a partner who wants me to go in with him on an FHA loan using my name & credit ( because i qualify), and he'll come up with the down payment( 10,000 or so.) for a Multiplex out here in the Central Valley in California.
On the other hand I've seen a lot of videos on Wholesaling and I understand that concept more, even though it may require more work to get a deal done, The cash return is quicker. Just need some advice on what i should do.
It all depends on your goals --- cashflow vs capital. If you are looking to get an FHA loan, I would assume you are looking for an owner occupied property (you may have problems getting the loan if the down-payment comes from a 3rd party). Wholesaling is a job, while owner-occupied multi-unit can create cash flow and be a true asset vs liability. The wholesaling avenue can create capital quickly so you can move into a cash flowing buy and hold situation.
What's up Dandre, congrats on getting started. Sounds like you have some good opportunities. Sounds like you have a chance at making some nice passive income with your partner since you have something he needs and he has something you need.
The difference in buying a property vs wholesaling is that owning is passive, which is the goal of most RE investors, we want to make money while sleeping and on vacation. Wholesaling is a faster return but it's VERY active, in my mind, wholesaling is a great side hustle to make money so you can convert profits made into passive RE holdings. Additionally, I understand wholesaling but I've never understood why wholesaling as an active job is better than becoming an RE agent, perhaps I've never looked into it enough. All that to say, you may want to look into becoming an agent if you are considering wholesaling as they are very similar.
I'm more than happy to talk more if you'd like to talk Fresno RE etc... Just message me.
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