I AM NEW TO REAL ESTATE INVESTING
I noticed that a lot of people push newbies into Wholesaling and to be honest that might not be the best niche for everyone starting in real estate investing. In this blog post I will go over my 3 primary ways to tackle properties. Please realize I said I will go over my 3 ways and not every way known to man. As most of you know I started out Broke, busted and disgusted. I learned about Creative Real Estate Investing in 2010 and I discovered Wholesaling it was the perfect fit for me. However it might not be perfect for everyone.
Wholesaling houses can be used as a vehicle to get into real estate, to get to your goals, or just primary business strategy. The reason a lot of people push people into this strategy is because it does not have a high price tag to get in, very low risk but Great financial rewards. I still Wholesale houses and don’t fore see me stopping in the near future. The ? everyone ask “Can I buy houses with no cash or no money?” yes you can However it might take money to actually get in front of that motivated seller who is ready to do business with you. The process is simple but not easy. You find a Motivated seller, Motivated buyer, you assign your contract to motivated buyer and the best part you pick up your check at closing. Now I know a lot of you are wondering how much money it will take to get in front of that motivated seller. I will say it varies I seen people get a deal on their first mailing and sometimes it take people months of consistency to get a deal. There are ways to close deals with out spending money for marketing if you are good at finding buyers and partnering with other wholesalers is 1 way. I partner with people to sell my properties and to bring buyers to them. However I must say the most important things you will need for this strategy is not to be afraid of sales, consistency, dedication, perseverance and a lot of FOCUS. It took me 8 months to get my 1st deal. I’ve read articles stating as high as 95% of people who get in real estate investing wholesaling quit within the 1st 3 months.
The 2nd Strategy I use is Buy & Hold aka Rentals aka Land lording. This is also a strategy someone who does not have much money can get into. I will say I recommend that you have a minimum of 5k in reserves for each property you own. Because when you are dealing with Rentals its not if something goes wrong its when it will go wrong. In order to find the deals you will need money for marketing if you are looking to be creative like me also wholesalers can be a great source If you have Cash sitting around you can talk to a realtor, wholesaler, or find home owners your self. If you qualify for a loan a realtor can be a great resource for you. This is not a get rich fast niche it is Get rich slow type of niche. And believe me when I say its not as easy as it looks & sound. There is a reason people say target Absentee owners to find motivated sellers.
3rd Strategy is probably the most popular which is Fix & flip. Contrary to what people say you can start with no money. I know a few people that started out broke however they were able to find deals and they had family members that were able to fund the deals. I actually brought my first house in 2007 to flip. I did everything wrong and the end result my partner & I lost 7k a piece. Always remember Flipping aint easy. You can make a lot of money doing it you can also lose a lot doing it as well. I still rehab houses to this day. Now if you are like me and your Family & friends do not have a lot of money. Then it will be a little harder for you to get started. I had to work my butt off to gain trust from my local hard money lenders. They had to make sure I was here to stick around for the long haul. If you don’t have Hard money connections go https://www.limaonecapital.com/ tell them Nasar referred. In Full disclosure they do not lend in all states so you must check with them first. This strategy could be a great one starting out if you have money, know people with money or can raise money for the deals. I know a few people that started their investing career this way, so it can be done.
In conclusion you have to pick the best strategy for your situation . What works for me might not work for everyone else. I hope this helps guide you in your real estate investing career. Each strategy will require work but you must find out what strategy best fits you and your long term goals.