Is wholesaling a good way to start investing???

[Alonso Fernandez Maldonado]

As some of you may know from my previous posts, I'm really interested in investing in rental properties. However, I'm still in college so I only have a couple of grand to work with. After talking to a few people I realized that maybe the best way for me to get started is doing wholesaling to build capital that I can then use to invest in Rentals. However, I have a few questions about rentals that I hope someone can clarify for me. 

- When you are wholesaling, are you supposed to purchase the home? or can you just put it under contract and assign the contract to someone else?

-If you don't have to purchase the home, do you still have to get approved for a loan in order to make an offer?

-what costs should I expect to have when wholesaling?

-How do I protect myself from having to buy the house if I'm unable to assign the contract to someone else? 

-Lastly, do you have any recommendations for books on wholesaling?

Thanks BP!

[Vick Galu]

@Alonso Fernandez Maldonado

Aloha mate ! 

1. No you dont have to purchase the property but dont put a property under contract without the intentions to get it bought that only gives wholesalers a bad rep. (however it happens sometimes when you just cant find a buyer for the property) the job of the wholesaler is out the property (deeply discounted) under contract and assign the contract to the end buyer

2.this is a great question now if your going through the realtor and finding your properties through the MLS then they are going to ask for a POF however you do not need a POF when dealing with the homeowner directly, if anything have your buyers provide a POF and use that for the property it will show that you actually have the ties to lock up the property and go through the process. (this is what we do)

3.Expect to pay the EDM if your savvy you can have your buyer pay for this as well on the back end. marketing is most def going to be on your list of expenses

4.Protection is all in the contract. Most people I know use the inspection period to get them out of the contract. 

5.the low and no money down book by brandon turner. However books are great and all but the best way to learn? is to do and if your just starting out that would mind finding a mentor that can walk through the process mate if not (and im not saying this is you) people get stuck on just reading reading reading ... reading as much as they can but never actually doing anything again not saying thats going to be you ... everyone is different mate.

best of luck to yah mate and hope things work out. Get connected if you need anything . Aloha