I want to ultimately do fix and flips i know Wholesaling is a good way to get started in investing but if you can find the right opportunity and the right people to back you can going straight into fix and flips be a good decision?
Anxious to make some good money and leave my day job lol
Be sure to watch podcasts on Bp.com regarding fix & flip and wholesaling. I believe you should incorporated both exit strategies into your business. However, your decision may depend on your personal finances. What's your funding situation like? Have you built your buyer's list? What's your credit situation? Do you have private lenders lined up? Have you connected with contractors to assist in the fix & flip area?
Educate yourself on both exit strategies. If you can answer the questions above and some that may come up during your due diligence you will find your answer.
wholesaling actually is not a good way to get started in REI.
@Renee Stewart gave you some good food for thought. It depends on you. On your current capacity and strategy. You know what I found out about wholesaling, most people do it, but do not call themselves wholesalers. Rehabbers who get a lead, they do not want, they wholesale it off or JV on it. I think many people get hung up on trying to be this or that. I agree that one should have a primary function, but that does not mean you cannot do other things. So depending on your situation, if you find a property that you want to fix and flip then do it, if after you get the property under contract and you find that you cannot fix and flip it for any reason attempt to wholesale it. So if you buy right you can have multiple exit strategies. Most of the successful people I know in the business incorporate a little bit of everything and leverage others to get most if not all deals done. The business is incoming leads and exit strategies. That can be anything wholesaling, rehabbing, lease options, notes, tax liens, whatever.
Well im not putting a label on myself i want to do it all from wholesaling to fix and flips to buy and holds but i know it takes money to make money in some cases so im trying to make money to make some more im just ready to work
Right, so do what it takes to make that money. If the first deal is a wholesale so be it. Just get the lead, then determine what you can do with it.
@Bryant Brown I like your enthusiasm! Find a local mentor and buy him/her lunch and pick their brain. Attend as many REIA meetings as possible and network, network, network! There are plenty of experienced investors out there that are willing to share their knowledge and experience with someone just starting out.
I hope you have an alert setup on BP to get connected with investors in your local area. This is a great place to find a mentor.
@Renee Stewart I have been to a few REIA meetings already and started networking and set up my alerts for BP and im going to order a list of about 400 names of absentee owners from list source to start a direct mail campaign no better time to start then now
@Bryant Brown There's no time like the present. It's all about taking action! Setting up your pipe line to generate leads is key to getting your phone to ring. I have some docs that may assist you in organizing your leads. PM me and let me know what you need.
Your on the right track!
@Renee Stewart i just sent you a request
@Bryant Brown , if it's your first deal and it's really a good deal, you have 2 choices:
1) wholesale it; or
2) partner with an experienced rehabber (they put the money to buy it, they sell it, they fix it, you learn from them, they give you 20% of the profit)
If you need the cash now, go with #1. Otherwise, go with #2. Option 2 beats paying a guru thousands of dollars...you learn and earn from the deal with no risks on your part.
Account Closed Good advice. Too many people think fix and flip is easy. Even if you just manage the job, it requires a lot of knowledge if it is extensive enough to be able to make a good profit.
You are right on @Walt Payne : there are many moving parts to a fix-n-flip:
1. you have to learn how to find good deals
2. you have to negotiate a good price
3. you have to make offers
4. you have to raise the money to buy the deal
5. you have to know how to estimate repairs
6. you have to hire contractors
7. you have to manage them
8. you have to pay them
9. you have to know how to market the house or hire the right real estate agent to help you sell it
10. you have to sell the house
11. you have to show the house
12. you have to negotiate with buyers
13. you have to check the financing of the buyers to see if they qualify
14. you have to coordinate the closing
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