More and more people are getting into the market of real estate investing, but as the investing base grows, so does the number of “new” gurus. A lot of these gurus have a few deals under their belt and are pushing their students into getting started as a wholesaler. There’s nothing wrong with being a wholesaler, but the misleading part is the idea that wholesalers will make bank in this area of investing.
A wholesaler is someone who gets a property under contract, then turns around and sells that contract to another investor for a profit. They are being paid for putting the deal together, and once they get their profit, they’re out of the deal entirely. Sometimes a wholesaler will “pre-hab”, such as painting, landscaping, or putting on a new roof, to increase the value for the new investor who will take the contract over. I, personally, do not do “pre-habbing”; if I don’t want a property, I don’t want any more money than necessary tied up in it so I can assign the contract and move on to a deal I DO want.
If you’re buying, selling, and rehabbing a property, that is NOT wholesaling. Wholesaling is meant to be a way to get cash to pay your bills, build capital, or make a profit on a property you don’t want for yourself. There is ALWAYS a cost to using money, no matter how you use it. Guaranteed.
If you need help to get started in real estate, check out my online courses, the Cashflow Blueprint and the Cashflow Foundations. You can find them at my website, LarryHarbolt.com.
Good Luck and Happy Investing.
All too many people today are of the belief that they have instant access to any information they feel they need by simply talking into their cell phone. Most want to learn the real estate investing business as fast and easy as they can, but my friends learning the real estate investing business is neither fast, nor is it easy to do.
Stop being in a big hurry trying to find that magic technique, the secret sauce, the perfect formula that will quickly get you big piles of money in a hurry.
When you can find a truly successful and sophisticated investor you can learn from its time you take advantage of those opportunities. You can only learn so much out of a book, or by going to real estate meetings.
Why not learn from someone like me who has been successful and a sophisticated investor who has spent many years to master my craft.
It makes sense to learn from someone who has been through the minefield so you never have to make the same mistakes and suffer the untold misery inexperience can cause you.
Having lived through a market where houses in my area of Florida lost as much as 40% to 50% of their peak value after everyone had been enjoying huge price increases on a continual daily basis.
In 2007 and 2008 and early 2009 full price offers were being made and sellers were turning down those offers because they knew someone would come along soon and offer them more.
Then came the fateful day when the bottom of the real estate market dropped out and property values plummeted. Many investors who bought houses at the peak of the market when values were high experienced financial devastation.
So, what’s the answer to not getting caught up in a situation like we experienced in 2009? Listen to Todays podcast.
During my 40 plus year career as a real estate investor, I have often thought about writing a book about all of the dumb mistakes I have made. I thought I would go over some of what many struggling investors are facing today that is holding them back and preventing them from doing very many deals.
I have met many investors who are so set in their ways that they are not willing to listen to anything you are doing different from what they are currently doing. I think this is a giant mistake!
Because of my lack of real estate education in my early years is the reason I made the mistakes I did. I want to share ideas of what I have learned over the years that I continue to see many investors doing that is non-productive and how to overcome continuing to do those same things if you will listen to what I have to say.