Is it realistic to start RE investing by wholesaling out of state?

5 Replies

I'm new to BP and I'm working on getting started in RE investing. As it seems to for many new investors, wholesaling seems like a reasonably good option for a way to get started in investing and understanding a way for how to find deals. I live in the San Francisco area and based on the forum reading I've done so far, it doesn't seem like there is a huge opportunity for wholesaling locally. Is it realistic to consider wholesaling out of my area when I'm just getting started?

Originally posted by @Brian Armstrong :

I'm new to BP and I'm working on getting started in RE investing. As it seems to for many new investors, wholesaling seems like a reasonably good option for a way to get started in investing and understanding a way for how to find deals. I live in the San Francisco area and based on the forum reading I've done so far, it doesn't seem like there is a huge opportunity for wholesaling locally. Is it realistic to consider wholesaling out of my area when I'm just getting started?

Anything is possible so long as you have thoroughly done your homework, know how to properly analyze the local housing market(whichever one you choose) will take action and you have a good team to help you to close, yes it can be done.  

Kudos,

Mary

Is it possible, Yes!  Is it a good idea, probably not.  That being said, if you have no other choices then do your homework and be mentally ready.  There are different challenges doing virtual wholesaling. 

Are there any successful investors in your area that can guide you through the process locally? Is there a REIA? You can get a wealth of information that way.

Good luck..........Roland

I will second what Roland Palcely said. Almost anything is possible. This is not the way to start. Start small, start local, start with a bread and butter 3/2 in a blue collar neighborhood, as a rental. Learn the ropes. Do some more. Get some "stories", and experience. Be active in your local REIA. Read lots of books. Stay away from expensive GURU's. Then start wholesaling, if you wish. That's my best shot.

I'm sure anything is possible, but the thought of wholesaling outside my local area does seem a bit challenging without any wholesaling experience. I'll certainly be getting involved in some local REIA's. Thanks for the thoughts.

Not an easy task for sure.  I was wholesaling for a few years before venturing into virtual deals.  I had to understand the areas, know how to source deals, and a ton about HOW to wholesale (where to find buyers from scratch, etc).  It CAN be done, I dont know many investors who started off virtually.  Usually they have done a number of deals in their own market, got comfortable with that, then moved on to outside their area.

I realized I could do this anywhere when I had a deal 15 minutes from my house that I didnt even see, and sold it to another investor. I did everything online and virtually. Then I started doing deals out of state. I dont know how I could have done it without large data access, namely MLS to get a really good idea of market activity in the new area.

Good luck!

Anson Young, Real Estate Agent in CO (#14161n)