How To Find Your Place In Real Estate

When starting out in real estate, the questions overwhelmingly flooded my mind. Questions like: Should I flip? Can I buy and hold? Do I wholesale? The options inside of these are endless. I had no money to get started and I really didn’t understand all the ins and outs. I finally got tired of seeing others succeed and decided to dive in – even with NO MONEY.

Knowing what, when and how can be frustrating decisions. So I want to show you how I have learned to approach my projects in real estate investing over the years. Firstly, it’s important to understand their differences, and from there you can determine the pros and cons for yourself.

Flipping vs. Wholesaling

The concept of flipping is quite simple yet tedious. Essentially, you purchase property that you either fix up yourself or hire and manage contractors to do it for you. Then you can turn around and sell it for, hopefully, far more than you spent.

Whereas, wholesaling is controlling any equitable interest on a property and quickly selling that property for profit. The purchasing contract is the ULTIMATE goal with wholesaling. You find a seller, a buyer, and basically bring them together with YOUR contract. Simply getting that contract signed pays you the difference. The laws are sticky with wholesaling, making it illegal to wholesale Apple products online, but luckily we CAN wholesale in real estate.

Buying To Hold

A common example of buying to hold would be rental properties – you purchase a commercial building to rent out to another business and they pay rent money according to your contract. Unlike flipping and wholesaling, you have more of gradual, consistent flow of money. You won’t get rich overnight with it, but overtime, it adds up.

Determining YOUR Direction

Now that we have clarified some of our options, let’s get back to our original questions of determining what to do. Simply, I cannot tell you which way to go, but what I can do, is help you understand your options and give you the tools to weed through them.

So now with your simplified understanding of the real estate investing options, the real question to ask yourself is, “What would make most sense and fit in my way of living, the most?” I bet THAT is an answer you can give yourself. Success is defined differently, depending on ones needs and values.

A really important ting to consider is that when flipping properties, you HAVE to manage your contractors. So my questions to you are, do you have the skill set and knowledge to manage contractors? AND do you have the desire to manage them through the whole process? If your answer is “no”, then try wholesaling. Wholesaling might be a little less money, but it gets you a closed deal a lot faster with a lot less work. With both flipping and wholesale – you quit working, the money stops flowing.

Today, I have rental properties, both commercial and residential, that bring in enough flow to pay all of my bills from those alone. Again, it takes awhile to build up to this, but I can go on vacation for weeks or months at a time and not worry about my next check. The point is, I can stop working, and the rent money keeps coming in. I can go and do – the money is still flowing.

Your decisions create the path to your destination. So YOU must decide how you want to live YOUR life.

Go For It

While I cannot tell you which to choose, I strongly encourage and advice you to just go for it. Choose one and give it all you have. You might buy a flip and half way through decide it’s not for you. Don’t let that discourage you. That doesn’t mean it’s over – remember, there are endless options. One of them will fit your way of life and help you meet your goals. You’ll never know until you try, right?

When we focus on the what, when and how, we miss the chance to gain new experience and actually find our place. What are you losing if you find a property and decide you don’t want to flip again? I’ll tell you – NOTHING. In this market, you will sell it fast and then you never have to flip again. Regardless, you gained more knowledge for your next effort.

Have you heard the saying, “A jack of all trades is a master of none, but oftentimes better than a master of one”. You might decide you want to have your hands in all three. Don’t try to do it all at once, but you have to start somewhere. Choose one, any one, and go for it.

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