Why Whosale Exclusively?

Question

I am just now getting into real estate investing and I have read books on wholesaling, buy and hold, and flipping. It seems as though most residential investing fall into one of these three silos, excluding multifamily. It also seems most investors stick to one strategy and don’t do much or any of the other two. However it appears to me that the three dovetail into one another. Is it possible to be successful in all 3 phases of investing?  If not why not? I am also new to bigger pockets and posted this question in another forum. I am just not sure the best way to get a question answered so pardon the duplication.

Mark Hart · Answer

@Jason Jinks I agree with Roland as we have experience with all 3 of those techniques. We recommend (if you don't have cash) to start wholesaling to create a pipeline of houses and then rehab the best ones.

Barry Pekin · Answer

@Jason Jinks,

A core method for wealth building is (a) accumulate cash, then (b) invest said cash into passive income.

I equate that to wholesaling to build cash, then invest that in rental properties.

At least that’s my plan.

J.j. McGuigan · Answer

@Barry Pekin  Yeah i totally agree!! They each seem to beget the other and whichever one you find first just work with that and keep moving.  A good deal will attract buyers and a good idea of what specifics a buyer wants let's you know when you have a good deal for them.  Starting out it can be tricky I'm sure but once established it might become easier :)

Barry Pekin · Answer

@J.j. McGuigan,

I wrestled with this very issue. I’ve heard that you will have no problem finding buyers if you have truly good deals (not deals you’ve forced by underestimating rehab costs or overestimating ARV).  Still, I didn’t quite buy this, so I started networking before starting to market. Y’know what? If I had deals, I’d already have sold them. There are hungry buyers everywhere.

So what am I doing? I’m starting my DM marketing immediately. I’m driving for dollars. I’m networking at all the local REI events I can go to. I have no doubt I’ll have plenty of buyers on my list as soon as I sign my first contract - even if that’s in the next few weeks (which I really hope it is!).

In short, market and network... NOW! Work on finding both buyers and sellers. I have no doubt that the time will come soon where I’ll have both and I’ll be closing deals.

Rick Pozos · Answer

Hey @Jason Jinks I will give you the "other" advice. I think you should do all three and maybe even multi family. As always, "It depends"

I can tell you how I started. I knew I had to find good deals. How?? Marketing to find properties. What happens if the deal was too much of a rehab for me, wholesale it to an experienced rehabber. What if it was too small a rehab and not such a super deal, wholesale it to a landlord OR keep it as a rental. What if it was in a "rough" area, wholesale it to a rehabber or landlord who likes those areas.

Deal flow is the most important thing. From the deals you can choose what you want to do with the property. For me, the sub-to deals were the ones that I could do on my own without having to wholesale out, at the beginning. I wholesaled some super duper deals for a few thousand dollars. I did a few sub-tos and charged up the credit cards to rehab. When I found the right 4plex, I kept it for a few years.

Each skill set is a little different, but all in the same realm. Find the deals(by marketing) and you control what you can do with the deals.

Roland Paicely · Answer

To determine which is best for you.  You should consider the following:

(1) Buy and hold implies that you have cash on hand to purchase or access to it.

(2) The same applies to flipping.  You buy it fix it and sell it...…..cash needed.

(3) No cash needed.  Well, maybe a little.  But it can be done without cash.

For most beginners the choice is obvious...……..#3

Barry Pekin · Answer

@Jerryll Noorden, I don't want to hijack this thread, so I'll DM you.

Jerryll Noorden · Answer

Berry, I have seen you post several times. I really love the way you approach things. I checked out your website and I want to help. If you want I can give you an evaluation and tell you the things you need to change and add to your website to make a big difference in your lead flow and rankings. I  mean no offense to this of course. I just want to help you.

J.j. McGuigan · Answer

To add onto the question of which area to focus on... I was curious on everyone's take on which to focus on first, especially in wholesaling.  Should one try to get a Buyer's list first and see what they're qualifications are for good deals and seek those deals or find good deals and then market then to investors? I realize it's a little bit of both but wanting to hear advice on which way to lean.  Sorry if it seems I'm taking the post off course as I'm not trying to hijack it just didn't want to start a whole new thread when this one seems up the same alley.  Thanks

Jason Jinks · Answer

@Roland Paicely Thanks for the response. Is there one of the three you would suggest for a new investor starting out?

Why Whosale Exclusively?

Most Popular Reply