Is wholesaling the best way to start out?

Is wholesaling the best way to start out?

Charlotte, NC · Member since 2014 · 241 posts · 21 votes

Many individuals new to real estate think wholesaling/bird dogging is the best entry to the real estate industry. Since the belief is taught you can save up through a few days while gaining experience. My experience had its ups and downs but was a good learning tool. So because of this I was wondering if any of the experienced investors could start their career over in real estate what would be your best entry into real estate? 

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Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
11y
I'd say buy a duplex or triplex and house hack the other units to start.
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  • Investor · Atlanta, GA · Member since 2011 · 79 posts · 38 votes
    11y

    I would say it depends.  Wholesaling effectively takes quite a bit of effort.  I have a team that does most of the work for me but still, that doesn't mean the work still isn't there to be done.  That being said...

    If you have no capital...by all means, learn to wholesale but meet some contractors that are trustworthy along the way so you can start learning what your Buyers are seeing.  Effective wholesalers understand their Buyers worlds.  This is the number one problem I believe with most wholesalers as they really don't understand what rehabbers go through to make their money, especially in more costly projects.

    If you do have capital, consider getting a rental or two that are small rehabs (under 20k)  This allows you to not only get cash flow but think through the process all your wholesale Buyers are going to be going through.  It may not be as extensive as their jobs but it gives you a feel at least of what they may go through on a smaller scale.

    Wholesaling is fun but labor intensive.  Make sure you learn your Buyers world as intimately as possible to ensure solid success!

    Frank

  • Charlotte, NC · Member since 2014 · 241 posts · 21 votes
    11y

    @Carl Mcknight

     thanks for adding that perspective to the conversation

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y
    Originally posted by @Chad K.:

    @Daniel Bennison

     I totally agree, during these few years wholesaling I have learned a lot an realize how unique each and every deal is

     Chad, dont be a one trick pony (wholesaling), be a transaction engineer.

    Make money with most of your leads.

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