New Future Wholesale Investor-Tips

[Jalisha Myles]

Hello everyone! I am Jalisha Myles from Moss Point, MS. I just found out about wholesale real estate yesterday and became fascinated. I am pretty sure I spent the following 3-4 hours reading different material, joining Facebook groups and watching videos/podcasts. During those hours, I came across this page and I can say with confidence that I will gain substantial knowledge from this group.

I recently set made my list of long-term goals and one of my top ones is to have multiple sources of income. I currently work in the IT field (100% travel, young with no kids, not married) and plan to add stock investments and wholesale real estate to my stream. I am sure this question is asked frequently, but where do I start? All levels of advice are greatly appreciated and hopefully I will one day be doing deals with members of this community.

[Chinmay J.]

Originally posted by @Jalisha Myles:

Hello everyone! I am Jalisha Myles from Moss Point, MS. I just found out about wholesale real estate yesterday and became fascinated. I am pretty sure I spent the following 3-4 hours reading different material, joining Facebook groups and watching videos/podcasts. During those hours, I came across this page and I can say with confidence that I will gain substantial knowledge from this group.

I recently set made my list of long-term goals and one of my top ones is to have multiple sources of income. I currently work in the IT field (100% travel, young with no kids, not married) and plan to add stock investments and wholesale real estate to my stream. I am sure this question is asked frequently, but where do I start? All levels of advice are greatly appreciated and hopefully I will one day be doing deals with members of this community.

I commend you on understanding importance of having multiple streams of income. 25-30-40 yrs down the road, you will be glad on decisions you took when you were in 20s.  Well.. that's where my praise ends..  LOL

Now, a strong dose of reality. 

Wholesaling is not the right income stream for you based on what you have posted. First of all, wholesaling is a very shady business. Those who have done 100s of deals have stated that they have rarely bought from wholesalers. 

So what gives? Wholesalers are notorious for underestimating the repair costs, and overestimating the ARV. Not to mention lot of states are cracking down on wholesalers, and are deeming their shady business practices are nothing but "brokering w/o license". Even If you have a real estate license, then there are laws against "NET LISTING (Google it...) that make wholesaling illegal. Based on my knowledge (which might be a bit dated) State of VA does not permit net listing, but state of NC does (although its frowned upon). Only a matter of time before they deem it illegal too.

That being said, there are some ethical Wholesalers, but they do it as a full time job. It also involves a massive amount of marketing budget. With a job that requires 100% travel, you might not be able to do justice to demands of operating a wholesaling business. 

For those who have full time professional jobs, investing as opposed to running a business makes sense. Easiest way to become an investor is to become a landlord, or in your case landlady.  If I were you, with a job that demands 100% travel (ouch....)  that's where I would focus my efforts.. There are other avenues of investing as well like note investing, or buying real estate liens, which can be done in spare time as well.. Good luck..