Getting started in the real estate investing should I start wholesaling or lease options! Can anymore tell me which one i should do for a newbie like me!
It all depends on how prepared you are in terms of necessary information, capital etc.But i would prefer you start with wholesaling and go into lease options as you gain more experience in the industry.
Definitely easier to start with lease options, at least if you are using the cooperative assignment strategy, (which is what “wholesaling lease options” is. Some “guru” changed the name so he could sell his expensive crap).
Wholesaling lease/options and wholesaling houses aren’t necessarily options that overlap in a given farm area.
What you do first depends on the inventory in your farm, and then depends on your experience, training, and personal skills. Lots of beaters and fixers in your area? Go with wholesaling.
Lots of clean, bread and butter houses for rent/sale in your farm area? Go with lease/options.
Before I knew any better, I thought that wholesaling was the first choice. However, that opinion assumed there were lots of beater houses to pick from. I eventually moved too far away from my ‘beater farm’ and discovered that lease/options were a more ready source of deals where I lived.
If we’re in the ‘wrong’ areas, it could take a LOT more digging to find a deal that works, whether it’s a L/O or a wholesale deal.
True wholesale deals take a little more effort and time to find and close on, mainly because you need a huge discount to make them profitable. Lease/option deals don’t require giant discounts to work.
What’s more, lease/Option prospects can be as easy to find as opening Craigslist and looking for stale FSBO and FRBO listings. You might/will find dozens of L/O prospects, depending on size of the farm area and population density.
I agree with Moses, that wholesaling offers a more valuable education for the long haul. But it’s not brain surgery.
I would suggest you become an expert at one merchandising strategy at a time and ignore the rest in the meantime.
It focuses your brain, better organizes your thinking processes, and reduces stress.
Thanks u guys for your input!i think for me lease options is where I’m going to start!'can u recommend any good program that I can learn from that doesnt cost me an arm and leg!i I will love to do a mentor program, but they want to charge 10,000 who has that kind of money.
Kee, I pm’d you a suggestion.
I’ve been in real estate over 11+ years and I think lease options is an easier way to start. Getting the sellers first, marketing the property then finding buyers and keeping some of the option money with a vested interested, or you can do sandwich lease options.
You can do both. But they are right. Notice what you have more in your area. If you see a number of distressed-looking properties that look like they are vacant, maybe that’s a good place to start with Wholesaling. I do more business with Wholesaling and I personally like the flexibilty. Also, homeowners tend to be more motivated in this field of RE. But if an opportunity presents itself to be better for a Lease Option like if the owner is particular to sell at full price but is pretty motivated, by all means, do it.
Javipa, would you mind also sending me that suggestion of a lo program or mentor program? Thanks a mil :biggrin
Todd Toback is the ‘lease option’ expert I always recommend. I’ve got shelves full of L/O material, but Todd’s training is very sophisticated and powerful.
BTW, he’s got some free videos (testimonials) that are very powerful and detail exactly how to find deals at the beginning. In fact one of the posters on this forum pm’d me to tell me he flipped two l/o deals using just the information from Todd’s videos.
I don’t know what Todd’s training offer is now, but he’s a master at creative finance.
Thanks Javipa. :biggrin I appreciate the info.
I second the Todd Toback Suggestion. Todd is great.
You may also want to check out Joe Mccall and Wendy Patton and Claude Diamond
@ Javipa hit it right on the head! I’m like @Mike, where I’m from wholesaling works best for me because all of the opportunities that come with it, although in my area there are tons of lease options as well. Like everyone said find what works best for you and take massive action. :smile