Sorry if this is a dumb question but I was wondering what would be in harm in knowing how to do BOTH, (Lease options and wholesaling)? I guess it comes down to cash or cashflow.
From what I understand, there’s no harm in doing either. One you can continue getting anywhere from $1000 to $5000 for every new lease option deal (RTO tenant) you get, in addition to a little from their monthly payment. And for some reason they default on the contract, you getta make that kinda money all over again with a new person.
Wholesaling → You can make whatever (within reason) for each deal you sell to an end buyer. If you can do both, that’s great. It’s finding homeowners who are up to accepting a lease uption in the 1st place. After that, it’s pretty much icing on the cake.
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Hi ClearwaterfloridaREI,
I think it’s great to know how to do BOTH lease options and wholesaling, one would benefit greatly by having the skill to do both. This becomes esp. important depending on what type of marketing you choose. As you get your marketing going, some deals will work as lease options, some for wholesaling, etc. However, I will say that what worked for me was to start by picking a focus. I chose wholesaling. It was overwhelming trying to do all of the approaches starting out and unforatunately that happens to lots of newbies. I would recommend starting out by picking one approach, do 1 or 2 deals, then add new approaches.
It is a great idea to go into real estate as this could offer lots of business possibilities and opportunities. For example, if you have enough capital or investors, you can develop said property and put up something that is sure to earn long term. Something that offers rental space like office spaces or a Hilliard self storage facility. something that will earn for the long-term.
Im far Baltimore Md and I have a similar problem. I want a career in real estate. I have bad credit no funds to invest. I do work. My question is should I been my career starting out as a real estate agent who mostly deals with investors and to gain experience and knowledge from being a real estate investor. Is it a good idea to start as an agent or should I just focus on saving some cash and get started doing wholesale. My goal is to be able to buy a house and hold/keep for my family to live in and use it as leverage to be able to do other deals.
That’s similar to the way I started. I purchased a home to live in first and used it as leverage to buy others. Starting as an agent can build confidence, give you a better “sense” of the market, and make you more fimiliar with contracts; However, I think most of these things can be learned rather quickly without being an agent. On the other hand, being an agent will open up more opportunities. If you have the time, I would say do both. The more knowledge the better…
Becoming an agent won’t hurt (easy access to comps, REOs, junkers, etc). But in my opinion investing the time, effort, and expense required to get licensed all just for the sake of rubbing elbows with investors won’t do much as for your real estate investing career. you can do that by simply attending your local REIA. besides, most deals aren’t listed on the MLS anyway.
You don’t need any credit whatsoever to become a wholesaler, and only a nominal amount of funds. Baltimore is junker heaven…you won’t have a problem finding a ton of vacant abandoned houses to work in Baltimore. However it will most certainly take work just like anywhere else.