Bird dogging vs. Jumping into wholesale

[Account Closed]

I am new to investing and was wondering should I start as a bird dog or should I jump right into wholesaling? 

I have read a few books on real estate investing and wholesaling however I do not have a mentor which I feel may hinder me when starting out. Any suggestions? 

[Ned Carey]

There are hidden risks to all areas of real estate. 

I am going to make a bold statement that many will disagree with, but they are WRONG LOL

Real Estate is about the riskiest investment you can make.

Few will tell you that but it is true. Donald Trump's attorney George Ross said "People forget as many people lose money in real estate as make it." I don't agree with that exactly and I bet he was using hyperbole to make a point. But many people do lose money in real estate. The great thing about real estate is your risk is proportional to your knowledge. Real estate can be very LOW RISK for those that take the time to learn it well.

OK of my soap box. You asked what are the risks of wholesaling. 

• Losing a deposit because you can't find a buyer is probably the main risk. 
• A secondary risk is screwing up your reputation because you have deals that keep blowing up an not working out.
• Potentially legal trouble because some bureaucrat decides wholesaling is illegal (Tiny risk except in OH where the bureaucrats are starting to think this way) 
• Liability issues because you did not disclose something you should have.

I am sure there are others but wholesaling is one of the lower risk areas of this business.