Entering real estate in the current market

[Sian Poteat]

Hello, I am a 3rd year college student. With graduation and the ability to generate capital in the horizon I’ve been gaining as much knowledge as possible concerning real estate investing as that is my long term strategy for wealth. I am growing impatient and would like to step in as I see numerous success stories starting people my age (21) and younger. I understand the current market cycle is unpredictable at the moment and that it likely won’t be corrected by the time I’m financially stable and ready to invest, however that is why I am currently considering wholesaling real estate for the chance to jump start my plan and take action as I can’t help but feel guilty for simply going to school ( I aim to be a medical laboratory scientist and eventually a director). 

Everyday I spend relaxing after work or class I feel is a day wasted if I am not chasing a deal or finding a way to make it work. This is why wholesaling real estate has caught my eye. It has been advertised as a low cost way to break into the real estate market given enough hard work and time however several factors are deterring me from taking action.

1. The current state of the market, as it benefits sellers it’ll be much more difficult to get a deep discount as even motivated sellers seem likely to follow this wave of selling overpriced homes due to low demand.

2. Emotional reservations, even if I can lock down a contract at a deep discount if feel as if I was cheating the seller, they’d be selling their home for much less than others and would probably receive their asking price from a more desperate investor with deeper pockets. Even then they may be unable to buy a new home after selling given the low inventory.

3. Data, I rarely act without knowing everything I can. Becoming a new wholesaler in the virtual market seems like a tall task as without an existing buyers list and mls access I’d be left with out of date information such as that found on Zillow and Redfin. I am not sure of the legitimacy of prop-stream either.

4. Marketing costs, being a broke college student marketing seems like it would quickly drain my funds, even now. I rationalize the situation as this; low supply and high demand > higher saturation of wholesalers and investors vying for deals > less deals or even hits on a good lead. Combined with the fact that I learned speed is a key factor in real estate. Being a student athlete how can my schedule compare with that of a professionals with the data and the funds?

Sorry for the long post, my mind is racing and I honestly can’t wait to jump in. To me real estate is more than a way to build wealth, I have a dream of building something long lasting that can change the lives of those like me. Any advice or insight would be greatly appreciated.