So is wholesaling not a good way to get started in rei?

[Marissa Perez]

I went to a seminar here in Dallas Texas and the only thing they taught me and of course made it seem so easy was wholesaling. Now that I’ve joined BP I’ve seen a lot of experienced investors saying it’s not a good idea to be a wholesaler and how no one trusts them. So if wholesaling isn’t a good way to get started in this business then what is? Should I start by saving a ton of money and just buy a cheap house fix it up or rent it out?

[Lydia R.]

@Marissa Perez I think the common misconception is that wholesaling is the way to get into real estate with no money and no credit. Which is inaccurate. Of course you dont need as much capital to begin wholesaling. Just like any industry there are bad apples and shady characters, unfortunately the fact that the barrier to entry for wholesaling is so low (anyone can wake up one day and decide they are a wholesaler) means its easier for shady characters to jump in and.... well.... be shady.

Im here in the Dallas area as well, PM me and I will recommend some good meetups/REIAs for you to go to.

As for whether or not its a good place to start, it really depends on your long term goals. Wholesalers have to have a lot of skills to be successful. You have to be able to negotiate with sellers, analyze deals, market successfully, estimate repairs, determine ARV. Depending on your long term real estate goals wholesaling gives you the skills to find/source your own deals instead of relying on wholesalers, the MLS or realtors to find deals.