Newbie having trouble starting out

[Sherwin Vargas]

Hello BP users, 

I have been researching information for months now, listened to podcasts, bought many books. I am trying to get started with hopes of having a home under contract by the end of the year (Dec 31, 2012). I will begin real estate courses soon in Boston, Ma to gain a better understand of the entire real estate process. I currently work 55-60 hours a week so it can be difficult to get in touch with other investors and feel confident to make connections since I am usually always busy. 

I am having trouble deciding which route to take, wholesaling, fix + flip, buy and hold. I will be doing all three in the long run but to start what would be best? I hear wholesaling is the easiest for newbies  and the cheapest as I do not haven much cash but everything I read on starting wholesaling starts to get a little overwhelming. If I do wholesaling should would do any type of home since I would not be working on the house?

I tried building list but I am not sure exactly what would be the best list for my area. I have looked at foreclosed homes and auction sites but you need the cash right away so that is out of the question if I am not mistaken. I just need guidance I live in the Boston, Mass area (dorchester). I have been looking at homes in pawtucket,Rhode island for its relatively close distance and much cheaper prices. 

Do you guys believe wholesaling is the way to go with lack of funds? or any overall suggestions towards me getting started ?

Thanks for your help in advance! 

[Hattie Dizmond]

@Sherwin Vargas Take a deep breath.  I think you may be suffering from a combination of analysis paralysis and shiny object syndrome.  :-)

Seriously, slow down a bit.  First, this is a piece of advice I recently gave to another newbie...  Don't set goals for yourself that you can't realistically ensure the outcome.  That being...you can't control when you get your first deal.  All you can control is what you do.  Set goals that relate to your actions.  For instance...you will send out x letters per month to potentially motivated sellers.  You will write x offers per week.  You will attend x networking events.  Action will produce results, but you can't control what the responses will be to your actions.

2nd thing...define your niche.  You're correct that wholesaling has the lowest entry point for cash investment.  However, it's definitely NOT the easiest.  There are a lot of moving pieces to wholesaling.  You have to be an expert marketer, negotiator and have an expert level understanding of your market & how to evaluate properties within your target market.

3rd thing...define your target market and what your target property looks like. You can never be an expert at everything. Narrow your focus and become an expert at something. Pick 2 or 3 areas...I do it be school district and narrowed my initial focus even further to specific elementary school feeder areas. Learn everything you can about those areas. Go to open houses on the weekends. Make friends with the realtors who farm those neighborhoods...yes there are realtors focusing on specific neighborhoods. Limit your focus to those areas, until you can simply see an address and know what the ARV should be. (Of course, do the analysis anyway!) Farm those areas. Market, market, market.

Be patient.  It will happen!  Good luck.