Is wholesaling the best way to get into real estate?

Is wholesaling the best way to get into real estate?

New to Real Estate · Columbus, OH · Member since 2020 · 15 posts · 13 votes

Hey everyone, 

My boyfriend and I live in Columbus, OH. We just graduated high school this past summer and we've been working really hard to get into real estate investing but since we don't have hardly any capital, we've been working hard at wholesaling real estate these past 3 months to start it up, and by hard, I mean working about 10 hours a day. We've put in a lot of money into marketing and we have been doing it ethically, since most wholesalers don't and we will not be like them. We decided we would never put a house under contract unless we have a buyer lined up and ready to purchase. However, there are now SO many wholesalers out there and so many of those wholesalers do it unethically and it is making it so much harder for us to build any kind of trust with the sellers, so we have not been able to close any deals.

Wholesaling is not what we want to do long term, it is something we want to do to get capital to start investing so we can be financially free. We are living with our parents right now because I am not able to move out yet. However, they are super discouraging and they keep telling us to get regular jobs and they are constantly putting us down. We want to invest so bad but we don't have the funds to do it... and having a regular job just isn't an option because there's no place to truly scale in that kind of setting. We looked into being real estate agents at some point but we are set on owning our own business, and being a realtor would not work out for us for personal reasons. 

What can we do to get the funds to start investing? We are willing to put in as much work needed, we just feel like wholesaling isn't what it used to be because so many people think it's "easy" cash and so they rip off people and it ruins it for all the good wholesalers. What do we do? We would be happy to partner up with people, but we don't know how to go about it. I would be grateful for any and all suggestions or help! Message me please!

Thank you!

1Reply
31 views

Most Popular Reply

Dan SheeksPro Member
Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
5y

Hey @Kelsey Gabhart

Congrats to you for your ambition! I work with a bunch of young aspiring real estate investors just like you (in a free online group), and I am willing to help you out with some advice or even chat on the phone if you wish. I'm not sure how old you are, but I recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/...

See this reply in the discussion

11 Replies

Jump to latestLatest
  • Dan SheeksPro Member
    Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
    5y

    Hey @Kelsey Gabhart

    Congrats to you for your ambition! I work with a bunch of young aspiring real estate investors just like you (in a free online group), and I am willing to help you out with some advice or even chat on the phone if you wish. I'm not sure how old you are, but I recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/...

  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    If you can see yourself being in real estate for a good amount a time or a full-time career I would consider getting your license. You will have more opportunities down the road if you are licensed. Congrats on getting started early and good luck! @Kelsey Gabhart

  • Member since 2020 · 30 posts · 16 votes
    5y

    I agree with Brandon! Get your license, it's a full time "regular" job like your parents are pushing you towards, you'll make some money for proof of income for loans later, you'll have your ear to the ground about what's going on in your market, and you'll learn the ins and outs of how to buy a home.

    This is a full time job and you'll only get out of it what you put into it so be ready to work!

    Good luck!

  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Kelsey Gabhart Read this: https://josephandjoseph.com/ar...

    Pivot...learn how to market and locate deals on your own...pandering a contract to another "investor" for a few grand is pointless. Learn how a purchase money mortgage works...if you are good with people, money doesn't matter. And the equity you will build in your first property will eclipse anything you'll see in wholesaling. 

    Realize Multifamily Group11 Review
    View Page
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Brandon Sturgill:

    @Kelsey Gabhart Read this: https://josephandjoseph.com/ar...

    Pivot...learn how to market and locate deals on your own...pandering a contract to another "investor" for a few grand is pointless. Learn how a purchase money mortgage works...if you are good with people, money doesn't matter. And the equity you will build in your first property will eclipse anything you'll see in wholesaling.

    wholesalers dont like reading the law as spelled out in your link there.

    I cant understand how someone wants to get into real estate and can think wholesaling is ( long term) better than getting licensed and building a real estate practice..  unless they are drinking the cool aid and think they are going to make massive money right away..  Very few can pull that off.. and the top wholesaling shops spend lots of money and are vertically integrated and most are licensed ( too much liability not to be).  Takes some time in Real estate to build up.. I started at 18 and just kept going.. not all wine and roses but its been a great ride.

    My wife is a better example.. 30 years at it. all in resi selling to owner occs .. she has not advertised for business in a long time probably over 15 years its all referral..  And its crazy good right now.. Brokers who are in areas of higher priced real estate and are good and active easily make 150 to 500k a year.

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kelsey Gabhart - In my humble opinion.....the best way in is to work under someone who is where you want to be in 5-10 years.  Work for free and learn from them

    You shouldn't tie up peoples houses under contract if you have no way to close the deal.....or if you have zero understanding of construction.....or how to market a property to investors for sale.

    Everything should be about the customer experience, not the commission. 

  • Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
    5y

    Learn from someone else as a job or follow them around a bit and help out for free to see if that  is where you want to be before jumping full in as a career choice.  There are so many different kinds of jobs you can do involving real estate that you  might as well explore on someone else's dime for while until you find the right fit.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.