Why Wholesaling is The Best Way to Start!!

There are many ways to step into the real estate market. You can invest your money in rental properties, flip SFHs, passively invest in ETFs, or simply be a service to the market (agents, general contractors, etc fall into this category). One way is wholesaling, which is probably the most advertised path by RE gurus. Although most gurus just want your money and will trick you into buying a bunch of online classes that will lead you to nothing, they have a point. Wholesaling, in my opinion, is the best way to get started. But my "why" is completely different than what the gurus say. 

Wholesaling is very lucrative because it can be done with no money down, but that's not why I love wholesaling. I've found it to be darn difficult to spend no money and make wholesaling work specially in this tight market. Another reason that gurus love to talk about wholesaling is that you as the wholesaler don't have any skin in the game so there is no risk of losing your money. True for the most part, but something more important is on the line ... Your Reputation! so that's not really why I love wholesaling either. Thankfully, from many mentors that I've had in my life I've learned that Reputation is more important than anything in business specially in real estate so I'm not trading my reputation for an extra buck! So why I love wholesaling so much for starters? 

I love wholesaling because it focuses on one aspect of real estate investing and that is Finding the Deal. By far, the hardest hurdle for investors is actually finding deals that are worth putting your money in it. "Money is made in the buy" I'm sure most people have heard of this phrase and that is exactly why I love wholesaling. Because I meet the challenge head on! A good investor is one that can find deals! not just any deal bu stellar deals! and I want to be a deal finding machine. One that my investor partners come to me for deals because I have a great reputation. This achieves 2 things, my retention rate remains high and those investors refer me to their buddies! Magic! As soon as your partners (clients) starting referring you your business starts growing like crazy! 

If you position yourself where everyone comes to it not only helps you grow your business but also helps you grow your personal brand and your network. remember I said your reputation is on the line... now you see why it's important? You can't grow your network (and therefore your business) if you have a bad reputation in the industry. We all have heard of that wholesaler who massages the numbers to make a bad deal look good. If you want to become a wholesaler don't be that guy/gal. You need to be trustworthy, knowledgeable, and simply a good person. 

Final word... wholesaling done right, could be the best way to get started and even grow to a very profitable business. Just remember, it's not easy to do and takes a lot of blood, sweat, and tears to do!