Strategy Starting Out

[Kyle B.]

I plan on starting out in real estate investing by wholesaling to cash buyers. I want to start by wholesaling because it will allow me to gain practical experience and knowledge (of which I currently have little) without risking much in the way of capital. After reading a lot of posts on BP though, I have notcied a fair amount negative sentiment towards traditional wholesaling, as it is not as profitable as rehabbing and does not create passive income like owning rental units.

My ultimate goal would be to move from wholesalilng to rehabbing and also building up a rental asset base to create consistent cash flow. But I think it would be crazy to start actually purchasing properties without have real world experience dealing with real estate (not just from reading books/forums or purchasing study programs, but actually going through the deal process from start to finish). To me, that sounds like a quick way to loss money and not the best strategy for someone without any real experience.

I would be interested in hearing more seasoned people's opinion on this topic. Is traditional wholesaling a feasible business model? I've read forums from what seemed to be successful wholesalers (which leads me to think it is feasible), but as I mentioned earlier, I've sensed a somewhat negative sentiment towards this business strategy. Also, for those who are landlords and/or rehabbers, did you start out wholesaling before actually investing your own money in properties or did you "dive right in" so to speak?

Thanks and merry Xmas/happy holidays to everyone.

Kyle