New Member from Georgia

[Genard Williams]

Hello Everyone,

My name is Genard (or G.A.) and I am currently in a 9-5. I am brand-new to the industry with zero experience, so I've been looking to research as much as possible to close the knowledge gap. I have found a mentor who has agreed to help me along the way, but I don't won't to be much of a burden, which is why I am looking to gain as much knowledge about the field as possible. As a beginner, I am initially interested in Wholesaling, low and no money real estate investing in Georgia. What do you guys suggest?

[Marvin McTaw]

Originally posted by @Genard Williams:

Hi @Marvin McTaw, and thanks for the welcome. We should connect on LinkedIn (stalking on LinkedIn is sociably acceptable). Yes, I am an MBA Candidate, and I will be finishing up in May 2017. I've worked in law enforcement for almost 13 years and I've been shot at one too many times (no, really). There are countless reasons that I am considering a transition. The primary reason is financial freedom and to be able to spend time with my wife and five kids. My ultimate goal is to "buy and hold" and/ or "flipping" properties. However, given my financial situation, I am searching for the path of least resistance, and set up some short-term wins, that will give me the motivation to continue and work towards my ultimate goal. 

As of now, I am trying to find a foot in the door. I have a mentor who is a successful investor in his own right, but I don't want to be much of a burden to him. I actually met him while at work. As a trainer, I know that retention of information comes by doing. So, I'm on Youtube and this site trying to close the knowledge gap and to understand the verbiage in REI. This knowledge, coupled with real experience, should put me on the right trajectory. I am a fast learner. Wholesaling was one of many different categories that I came across. To be honest, I am not committed to the wholesale genre just yet per se--my preference could change as I learn more. I am currently watching "The Ultimate Beginner's Guide" videos and maybe at the conclusion I will have a more define strategy. The point of mentioning wholesaling was me just taking the first step. I am a life-learner and open to suggestions. Thank you for your advice and taking the time to comment. I look forward to future conversations, and hopefully, profitable deals.

It's fantastic that you've taken such substantial steps to changing your life by working towards your MBA and diving into real estate investing. I would encourage you not to get caught in the education trap that so many people get caught in and make sure you continue to take action steps towards doing your first deal regardless of the type of transaction. Just be aware that you are more likely to be paid in knowledge than with money on your first deal. 

Given what you've said about your motivations, I would actually suggest you might want to start by looking at rentals and possibly pursuing the Buy, Repair, Rent, Refinance, Repeat ("BRRRR") strategy. This seems like it might a good fit for you since you are currently employed full time, working on your MBA and have a rather large family. There are lots of advantages for you that have to do with timing, time management and skill sets.

The first reason I suggest rentals for you has to do with financing and your current situation. You are a W-2 employee right now with the Police Department. It will be a lot easier for you to get conventional financing using traditional and even non-traditional lenders. This can help juice your returns and allow you to buy more properties faster than if you jump ship and go directly into REI full time.

The second reason I suggest rental properties over wholesaling for you right now is because financing is so readily available and at historically good rates, especially if you have OK to good credit but even that's not a limitation.  

The third reason I suggest rentals is because of time management. Given your wife and kids, school and job, rental property investing would likely be a lot less time consuming than dealing with wholesaling. Wholesaling is a constant factory of marketing, processing leads, making offers, selling properties, managing transactions and dealing with the hiccups that occur with this. Yes you can outsource and delegate these tasks but its not always as easy as it might sound. At least with rentals it's usually a lot easier to outsource the property management and frankly you could probably do a lot of this on your own without a property manager.

This all just my two cents and opinions. I hope it helps!