How did you get started in Long-Term Real Estate Investing or Wholesaling?

Question

I am new to Real Estate, I have been watching YouTube Videos, reading BP forums and reading books on Real Estate. I am eager to start my Real Estate journey, but having trouble starting.

I recently moved from Michigan to Colorado (staying for a few years). I was planning on getting started in investing in long-term rental properties, but, since moving to Colorado, I am slowly pivoting towards wholesaling properties. The reason is, I would be able to get my feet wet in Real Estate while living in Colorado, yet be able to wholesale properties in Michigan (I am more familiar with the market).

I would love to get any advice or hear anyone's story on how they got started in Long-Term Real Estate Investing or Wholesaling. Thanks!

Nathan M kiefer · Answer

We started in 2010, liquidated what small amount we had in stock market and bought three houses that were dumps and rehabbed them.

That was a different market as we bought 3 houses for $33k. Rehab was almost 25k on the three.

We used cash to buy 4 more over the several years following the purchase of the first three.

Once we had three good tax returns we pulled cash out with our local credit union and purchased 3-4 more.

Currently, we have 20 properties of which two are  higher end stilt Beach houses in Myrtle Beach,SC

We are from Michigan but went south not west 😁

Best of luck but the best way to get going is just old fashioned cash and buy what you can, grind to get to a cash out refinance and then buy more. We were fortunate to hit it at the right time but you can still do well and find deals they are just found more by having boots on the ground vs. hitting the MLS in my opinion.

Eric DeNardo · Answer

Hey @Kaylyn Schroka,

You're doing the right things to learn about real estate! Do you own or rent now? I highly recommend what other people have suggested to get started: house hacking. You can get a feel of what it's like to have a rental, but have the financing benefits of purchasing property as your primary residence.

Wholesaling is great because it doesn't require much cash upfront! It's a tough game out there though with wholesaling. It requires a lot of marketing, doorknocking, cold calling, and understanding how to value a home so you don't get stuck under contract. You can still buy a primary residence with little cash upfront with all the housing assistance programs out there!

Basit Siddiqi · Answer

In my opinion, wholesaling is not investing but an actual business.I also think wholesaling is much more difficult than being an agent, however, the upside is larger if you are a successful wholesaler.If you are interested in investing1) You should zone in on an area that you are interested in buying by a neighborhood.City or even zipde code is too broad.2) Determine the type of property you want to buy.A) Will you buy an old or new propertyB) How many bedrooms or bathrooms will the property have?C) What is the condition of the home that you will want to buy?3) Analyze all properties sold that fit your criteria that sold in the past 90 days and continue to monitor the sales until you become an expert on that property type4) Talk to lenders to see how much you qualify for as a down paymentBest of luck!

Wale Lawal · Answer

@Kaylyn Schroka It all depends on your short-term and long-term goals.

For me, I wanted to build long-term wealth through real estate and the strategy that I chose is the long-term rental property acquisition.

This is also a great strategy to maximize my taxes and take advantage of other real estate benefits because I am also a Real Estate Agent in Houston, Texas.

Real Estate Wholesaling is for short-term gain or capital.

I will recommend you learn more about both strategies and pick the strategy that suits your immediate real estate goals and risk tolerance.

Goodluck.

Michael Carbonare · Answer

@Michael Bunker  The short answer is the cooperative assignment is one of several types of lease option strategies you can use to score some deals.  It's a short term assignment whereby you can make your money from the assignment fee and for knowing how to do these deals and having the necessary agreements to do so.  For someone looking to get started in real estate this is a low risk approach with minimal cash requirements.  I'm a fan.

Scott Mac · Answer

I learned "Vision" from a blind man who had incredible vision and was very successful.

Before that, when I was a small boy, I was sitting on the couch with my grandmother watching I Love Lucy.

Ricky was getting ready to go to the club.

I asked why Ricky was leaving, and she said he was going to work to earn money to pay the rent.

I asked her what was rent.

She said Ricky had to pay Fred Rent money every month to live in the apartment.

I asked where does Fred work. She said he doesn't work he owns the apartments. All of the renters have to pay money to Fred every month to live in the apartments.

I asked, Fred doesn't have to work and gets all the money from everyone?

She said yes.

I said that's the job for me Grandma. I'm going to own an apartment house like Fred does and have everybody pay me.

I was about 5 years old at that time. As I grew up I met several men who rented out houses or apartments or commercial property, and just overall had a great interest in it from childhood until now.

It is my passion.

Good luck!

Dan Guenther · Answer

@Kaylyn Schroka - welcome to the BP community and Colorado!

I'd be happy to share my experiences and opinions in the long term rental space and wholesaling. I'm in the Denver market and focus on creative finance, wholesale deals, and all things investing.

I'll send you a DM and we can chat more! :)

Michael Carbonare · Answer

@Kaylyn Schroka  I recently posted about my rocky start in real estate here and here.  I'm not a wholesaler so I can't address that interest of yours.  My opinion as an outsider looking in is that wholesaling is a heck of a lot more difficult than the sales pitches tell us it is.  I started assigning/flipping lease options using a strategy known as a cooperative assignment.  Enabled me to get going in this business with minimal risk and minimal cash.  I was able to raise much needed cash and then branch into other strategies as deals were found.

Brittany Guimond · Answer

Hi Kaylyn — welcome to Colorado! I'm also a midwest transplant, I moved to Denver from Chicago 14 years ago and haven't looked back. I've got 2 LTRs and started in 2022. I'll send you a DM and we can chat more!

Bradley Buxton · Answer

If you just moved to the area a house hack can be a good way to start with an income property and you get a place to live while figuring out the best neighborhoods to invest in.  You can then grow your portfolio with the other strategies.

How did you get started in Long-Term Real Estate Investing or Wholesaling?

Most Popular Reply