Help finding a Niche. Wholesale vs Rental?

Question

Hey fellow BP members

I am curious if anyone in the Orlando area could give me the Opinion about what they see in the Central Florida market to help find my niche. I have been fortunate to talk with a few great locals but being new to this game I am wanting to hear from those who came before me and what their take is on which to choose.

I have been doing my research on Wholesaling. I have found a lot of false promises in this niche and have just realized the saturation has led to shady practices which have given those who wholesale a bad name. I myself have the morals and ethics that I live with and choose to do business in the highest regards.

Question: Are Investors/Lenders working with Wholesalers as much as they used to?

Are they lacking in a certain area that needs improvement? (rehab cost estimates, lead geographic area, marketing, negotiating)

What are things a Wholesaler can improve to maintain its positivity in the eyes of the REI world?

Anywho who works with a Wholesaler that is a Banker, Investor, Title company, Attorney, CPA...ANYONE in the REI world let me know your thoughts so I can potentially be one of the good wholesalers you can work with and trust one day soon. Thanks all, look forward to the discussion.

Chris Lyons

John Thedford · Answer

See 475.43 FL statutes

Christopher Lyons · Answer

@Scott Johnson Hey Scott Thanks for the advice much appreciated. I'm connecting with people daily and looking forward to my first REI meetup in a couple of weeks. There are a lot of great people on here but always looking for local help to get an accurate view of my particular market area.

Scott Johnson · Answer

@Christopher Lyons, find a local mentor for either wholesaling or rental investing. You can absolutely get licensed, but as long as you know how to wholesale correctly in your state, you don’t necessarily need to. It does give you the option of listing on the MLS.

Either way a mentor is highly recommended.

Christopher Lyons · Answer

@John Thedford Thanks John, I'm currently enrolled in an Online course, about to take the Exam next month for those purposes to be exact.

The ethics of some wholesalers has been a common theme in the articles I read and leaves room for legal issues.

I have not decided on the need for an LLC yet, although I have not done any research on it yet but will. Any initial thoughts on an LLC?

I have limited funds at the moment but (cliche statement) will save enough capital to move into a new niche. Depending on the Orlando market. If there is a way you know of that would allow me to access more than 70-75% LTV, I'm all ears.

John Thedford · Answer

IMO get licensed. This will help you from running afoul of brokerage laws. Also, it gives you more opportunities. When offered a deal, you have the option of buying it, listing it, or wholesaling it if your broker allows that type of transaction. If you want to build real wealth, buy and hold. Recurring revenue along with appreciation as well as tax benefits will make you wealthy.

Tina Verstrate · Answer

@Christopher Lyons

Hi Christopher, I'm going to send you a private message.