Beginner seeking some guidance

5 Replies

Hey everyone,

I am new over here and trying to work on expanding my knowledge base. I would like to get your advice/opinions/suggestions to me as a Canadian trying to invest (wholesaling) in US to begin my investing career.

I am already working on trying to build my cash buyers list. But i have not decided what State to invest in yet simply because i am not sure HOW to decide. So any help would be greatly appreciated. 

Are you planning on wholesaling or buy and hold?

I'm assuming wholesale since you are trying to build a buyers list? Personally, I think it would be extremely tough to wholesale not living in the area you are looking for properties. How could you accurately estimate rehab costs, comps, neighborhood, etc.

If buy and hold, I don't have one area. Deals are all over. I hear Ohio is very good. I am finding great ones in Iowa and Minnesota but I live here and know the areas and neighborhoods well.

Dan, Jedd is right, wholesaling in an area that you are not from, or currently living in can be tough. Here is the rub:

1. Wholesaling is probably the toughest job in real estate (Sorry, but I'm not going to sugar coat it). Many experienced wholesalers END up there after years of RE experience, most don't start there.

2. Almost all successful wholesalers are good at solving people problems. This is a PEOPLE business. If you are not on the ground in a market to meet with people and build rapport you might have a hard time. I have a very experienced sales lady who works with me and who is EXTREMELY good at building rapport, and she has a hard time doing deals over the phone is other states we wholesale in.

3. Real estate is local. Getting to know pockets of neighborhoods and nuances of certain markets takes time, even if you already have a good base knowledge about how to do deals. I'm an experienced wholesaler (done it for years) and I recently started wholesaling in other states and I can tell you that there is still a learning curve. 

Now, all of that said, don't let me discourage you, it is possible, but it definitely isn't easy money IMO. 

Just my .02

Originally posted by @Dan Salim:

Hey everyone,

I am new over here and trying to work on expanding my knowledge base. I would like to get your advice/opinions/suggestions to me as a Canadian trying to invest (wholesaling) in US to begin my investing career.

I am already working on trying to build my cash buyers list. But i have not decided what State to invest in yet simply because i am not sure HOW to decide. So any help would be greatly appreciated. 

Hi Dan,

It is very difficult to be a wholesaler without having feet on ground.

You could get on ground runners but it would take years to establish such a trust and relationships IMO.

Just my opinion.

Maybe fix and flips would be better suited.

Thanks and have a great day.

I appreciate for the speedy replies guys they are very enlightening. From all the beginner research i have been doing, it has been leading me to believe that wholesaling is how most investors start out in real estate. But then i again i do understand that not being physically in the area and not having any knowledge regarding it can make it very tough.

But all in all, i know it is not impossible to do as i am sure many other Canadians or even Americans must have or are doing similar things. I would love to know what is it that can be done to minimize the hurdles with this long distance strategy. I know for a FACT that networking is a key.

@Dan Salim  

Welcome. Fill in the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 80 past ones to catch up on.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul

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