REI Journey..Wholesaling and Fix and flips

[Elijah Crew]

Hey guys!! So I will be starting my REI journey soon. Was going to begin with wholesaling to build capital and experience. My question is could I do fix and flips as well as wholesaling? Sort of simultaneously ? As in I will wholesale but if I come across properties where the ROI is pretty good I would use a private lender purchase it then follow through with it that way. Or should I focus my time more on one aspect whichever it may be.

[Eric Clinton]

That was a great question, and an even better answer Jack. I have 30 plus years myself In construction and have worked doing flips for a contractor. You can do them. But there is so much involved especially with permits. On top of that, unforeseen conditions, that can cost monies not figured into budget. As well if you do not have the right team of sub contractors, you can lose your shirt coming out of the gate. Time is also a killer, remember the clock starts ticking the second you get Hard Money Lenders involved, and if you have delays,  you start eating away at your profits. If I were to do it, i would say stay away from full gut renovations,  and stick to something that is just light cosmetic stuff. At max doing a kitchen and bathrooms some paint and refinishing of floors. All in and out stuff, just to bring it up to date. Good Luck