Better to do wholesale real estate or be an investor?

Question

Sort of stuck between a rock and a hard place. I'm currently overseas with the military, and when I get back, I want to put my money towards something useful. I have a budget of $30K liquid money for now to use. Currently live in Northern California, I'm limited in knowledge when it comes to wholesaling real estate as well, fees like I just need to see the process done for myself. So I pose this question, when a buyer doesn't have physical money, is there room for me to step in and lend my physical money, and gain a percentage when the house is sold?

Micah Copeland · Answer

@Earl Jefferson

Hey Earl. Thanks for your service and hole it down wherever you are stationed! As far as what you are asking... You can find someone who needs some capital and JV on a deal with them when you get back, however, usually the people that need capital are your newer type investors.... So seeing how you don't know much about investing at this point I wouldn't recommend teaming up with someone who barely knows more. With that being said if you can find an experienced investor that would be willing to JV (joint venture) with you on a fix and flip then GREAT! It could be a great way to get your feet wet.

As far as wholesaling goes you don't need much money to get started. In my opinion you should take the time you have over seas and study as much as possible!! I guarantee if you set 2 to 3 hours a day to the side and study you will come back feeling very confident!

Brian P. · Answer

Earl

Think return on your money, lending is nice, say you can loan it out at 10%, in one year you will have an extra $3,000. Now by learning the  basics by studying while your still overseas and then wholesaling when you get back. In Vacaville you should be able to make $ 45,000 your first year from wholesaling if you put in the work, even if you get a job to ease the money situation. First rule of business, never touch your working capital for anything other then business..

Yes, I know my header says Utah but I was and still am an investor(trying to totally retire) and am currently an inactive broker with a lot of experience in the greater S.F. bay area, from Santa Rosa to Gilroy and fromPacifica to Stockton, and sold many properties in Vacaville and Fairfield. Even though my primary offices were in Cupertino, Danville,  Now that I typed that I remember why I was often very tired.

So study, maybe the local paper is on the net and you can keep up with things. And good luck when you begin your Vacaville campaign.

Bryan O. · Answer

There are many ways to be involved in real estate and make your money work for you. None of what you mentioned involved wholesale. There are 2 basic ways to use your money like you are asking:

Money lending (you'll hear hard money and hand money mentioned): you lend your money to someone who, let's say, needs the downpayment paid and you charge them interest over a short period. For example, you lend enough for their downpayment for 6 months at 10% interest.

Equity partner: you provide x amount of funding to the project for x% of equity. You are providing capital and they are providing expertise.

Hit the books and start to learn about everything you can! There are a million ways to be involved. Pick what fits your dreams, then get intimate with it!