Confused!

[Jamie Carter]

Hi All! Newbie Investor here........

I'm looking for a way to get passive, steady income and I thought a sure-fire way to do that was to start buying and holding. However, I'm also thinking of relocating from Missouri down to Texas within the next 2 years. 

I also am learning more and more about wholesaling, and how it can be illegal if I don't do it right (which is obviously what I want to avoid). Also- there might be more money down than I think, which I might be able to handle as long as I make a profit as planned. 

So.....wholesaling first or buying and holding??

Thanks all!

[Liz Brumer-Smith]

Hi Jamie,

This is always a challenge when starting out in real estate and I often see a lot of newbies ask for advice on what avenue to tackle first. There are a TON of options for making money in real estate and honestly they all work if you learn, take action, and don't give up. My biggest suggestion is to find out what your ultimate goal is and what your venturing in to real estate to accomplish before deciding on any one avenue. 

Are you after financial freedom, if so what does that mean? Cash flow or making larger quick pockets of cash that will sit in bank but you may not have cash flow? Is it to get out of debt first? Or build up cash flow to replace your current job? Maybe it's both. The answer to these types of questions will greatly guide you to your ultimate decision of what to venture into. Remember to also take everyone else advice on which is best with caution. Everyone is different. I tried several different investment routes first that were suggested to me, I saw some success with them but realized even though they worked they didn't meet my ultimate investment and life goals. Here are different ideas of strategies you could go for. 

Quick Cash (Raise Capital or Large Sums of Cash)
Rehabbing
Wholesaling
Brokering Notes
Non-Performing Notes
Storage Units (flipping run down ones getting them rented then selling in a year or less)

Positives: You can make large sums of money in typically 3 - 6 months depending on the deal and experience level. 
Negatives: You have to constantly work to find new deals, marketing money upfront, and sometimes you may be required to put a downpayment or some part of the rehab money (but not always)

Long Term Passive Income
Performing or Re-Performing Notes
Seller Financing
Rentals (single family, multi family, commercial or larger apartment complexes)
Non-Performing Notes
Storage Units

Positives: Can replace current income to truly become financially free. Once the property or investment is stabilized (rented, paying, etc.), you are getting paid while more or less doing nothing. 

Negatives: Most still require effort to find the deal, market to find sellers, and potential work to rent the property or maintain it, can have complications with borrowers defaulting or renters needed to be evicted/trash the place. Also, this is a longer process and typically financial freedom is not acquired super quickly. 

I wish you the best of luck!