I am new to real estate investing and in need of some guidance. Like others I’ve taking real estate training and I’ve come across some good deals, but I don’t have the funding for these deals. I know I can go the hard money lender route, private lender, ask a family or friend.
I have 2 questions:
-Should my first deal be inexpensive until I obtain experience and capital?
-Also, I was told to invest in wholesale real estate, and then re-assignment them to investors to build up my capital…any thoughts?
Hello Eugene 0315,
It all depends on what you want to do. Do you want to own rental property or are you looking to buy fix up and sell? How are you financially? Do you have cash and credit? Where do you live?
If you want to start flipping houses and you’ve found good profitable deals, why don;t you expand your network and meet people who are dying to partner up with you?
Finding deals is a hard thing to do and any real estate investor/flipper would be happy to hold your hands throughout the process and at the same time make some money. It will be unbelivably hard to do a flip by yourself without first the knowledge and second the money. xDD
Taking money from friends and family is a scary thing to do when you don’t know if would be able to pull it off… Taking money from someone else is a HUGE responsability… Some times you’ll be taking entire life savings and you want to make sure you are capable of not only paying back the principal but the interest also … Do this once you have some knowledge of what you are doing.
In the mean time, partnering up with an experience rehabber will put you in a better situation… You’ll be learning the process without having a lot of risk plus you can also be paid…
Get paid to learn, you can’t beat that…
Furthermore, it’d be a waste of time, energy and money to squander a good deal because you don’t know what to do… at the very least wholesale it or partner up with someone who knows that they’re doing…
well… Early on in real estate, I gave up friendships, exercise, sleep, vacations, and leisure time. How much you give up depends on how quickly you want to become financially independent. …
Eugene0315, you have to know a little bit about the different ways to do Real Estate Investing so you can decide which one’s right up your alley.
I can tell you that Wholesaling is a good place to start though because that’s where I started and I’ve been doing it for years now.
With Wholesaling, you don’t need credit, experience or a lot of cash to get started. This is a good way to earn fast cash with the low risk on every deal. You can learn and earn so you gain the necessary experience, knowledge and capital for your next forms of investments.
Your first deal depends on the profit potential of the property and the risk you’re willing to take as a new investor. If you want to invest with low risk then, lease options, contract for deeds and wholesaling would be the areas to look at.
Before you do any deals, become knowledgeable at what you want to do…at least know the basics. :cool