So I’m about to close on another wholesaling deal that I will make a 10k profit from. I really want to get into rental properties. Is 10k enough to go that route or should I keep wholesaling and build more capital ?
I want to take this 10k and put it right back out there, just not sure where.
Stop selling those deals and start keeping them girl ! You already know how to market and deal with motivated sellers now just structure the sale under owner financing with 10k down
@Phillippa Gilkes Build more capital. Do more wholesaling and get more experienced and then start buying some property after every so many wholesale deals.
@Elmore Johnson thank you. I think that what I’m going to do.
@Dennis M. I’m concern with unexpected expensive. Maybe a few more deals and I’ll do buy and hold investment. Thank you.
If you are having success with wholesaling focus on that and scale it. Single family rentals have little cashflow and take up a lot of time to scale. You are way better building cash to invest in larger commercial and multifamily properties down the road.
Congratulations on closing another wholesale deal for yourself.
I guess the question I have is what size/type of rental property are you looking to invest your capital? Is it <5 units, or >5 units? What location too? Locally in Atlanta, or elsewhere?
$10K might be enough earnest money for something < 5 units, but you could also consider becoming a passive investor with someone who is syndicating a multifamily deal.
On one of the podcasts I listened to recently the guest described how they were a passive investor in a syndication deal so that they could understand more about the whole syndication process, so they could syndicate a deal for others. That may not be the route you're looking to go, but it's worth considering.
Whitney Sewell, Life Bridge Capital, The Real Estate Syndication Show, episode 327.
I hope this may be helpful.
I would say it depends and how your credit is. I would say try to build up to $50k or maybe tell the person I am owed $10k can I do $5k as an investment in the deal and $5k cash.
With you already being involved in wholesale I would say you are halfway there.
I don't see any reason you couldn't keep a few of those wholesale deals yourself and flip them or turn it into a rental.
With that said you definitely want to get some estimates from a contactor for any repairs it may need. Having only 10k you could potentially get a downpayment on something. There is nothing wrong with a SFH for your first rental. Or you could save up for a larger down payment on something larger like a Multi family.
Sorry - I’m a newbie. What does “wholesaling” mean in this context?
@Greg Dickerson wow thanks. That actually a great idea !
@Phillippa Gilkes it may be hard for you to find good syndications to invest in as most require you to be accredited. I would look into investing in publicly traded REIT's if I were you. You'll have a much lower risk then directly owning real estate with such a low amount of money.
Why don't you invest and get twice the profit in just 7days. I can get you connected.
@Phillippa Gilkes I think you keep doing what you are doing. Reinvest back into your wholesale business and start to scale. Up your marketing so you get more leads and more deals. Then after a few more deals start keeping some for yourself or find a partner that may be able to flip some of your deals and split the profits and just keep growing your money. Remember to get rich in real estate isn’t a sprint but more of a marathon! Good luck!
@Thomas Weidner amazing advise ! Thank you.
@Phillippa Gilkes Start flipping the best deal out of every 5 you get. 10k isnt that much. It goes quicker than you think. Use that 10k to increase your marketing, start keeping one deal out of every 5 and wholesaling the rest. Use hard money or find a capital partner and flip the house you kept and put that profit towards accumulating rentals if that is your long term strategy.
@Lydia T. Thank you ! That a really good idea. Rental is my long term goal. I think that exactly what I’m going to do.
@Phillippa Gilkes You might also want to look into seller financing as a long term strategy also. I prefer it over rentals.