4 Reasons to Stick with Wholesaling in Minnesota Before Moving On to Other Options

Many are attracted to becoming a real estate investor because of the large margins you can make. Unlike the stock market, real estate is a physical asset, that while it may fluctuate, it retains intrinsic value.

When starting out, stick with wholesaling. Here are four reasons why you should before moving on to other forms of real estate investments.

Cost Effective Introduction

Wholesaling is a great way to learn the in’s and out’s of real estate without having any money. Thats right, You dont need a dime to be able to start wholesaling houses because you are essentially the middle man in the transaction. You will just be assigning the contract to purchase the house to another investor. So you never actually purchase the property. Pretty cool huh? You can make anywhere between 1,000-10,000 assigning contracts. Think what you could do with a extra $10,000 in the bank.

Relationship Building

As you are connecting with buyers for your wholesale deals you are going to learn the value of knowing others in the real estate investment business. The connects you will meet wholesaling will only help in your future real estate goals.

When you’re ready to step up and make a larger investment, you already have a group of potential partners who have access to capital you may not. Not only does this help in the purchase of properties, but their resources will also aid in rehabbing and later flipping the property with potential buyers already in your network.  Spending time becoming a good wholesaler establishes solid business relationships.

Gaining Market Savvy

Investors like to play scenarios that help them understand risk better. When you wholesale, you move from fictional scenario to real life but without the same level of risk that the actual investor does. By working with both buyers and sellers, you develop a better understanding of where a property starts and the margins the final investors get when selling it.

It also helps you understand bigger market scenarios where slow markets make it easier for investors to negotiate better deals on distressed properties. You’ll also see when an investor chooses to rehab, hold and rent until market conditions improve. This strategy helps investors recoup the cost, get tax benefits and build equity in the property until a later point in time when they can sell for the desired profit.

Your Day Job

Before you quit your day job and start trying to wholesale full time. Take the time to learn the proper steps to completing a real estate transaction. Then once you have completed a few deals and you have money to take care of living expenses for a entire year you should think about going full time wholesaling. At that point you will know a lot more and understand how a wholesale deal is completed.

Wholesaling allows you to get this practical experience, meet the right people and not put your own mortgage on the line. Keep your day job, thus your steady income and work real estate wholesaling deals at night and on weekends. You can still find great opportunities without putting your entire financial future at risk.

Trust me I’ve been in your same shoes. Your excited, Your motivated, Your ready to kick some ass, Your sick of your job, Your ready to create a better life for yourself! Just remember success does not come over night it is going to take years but steadily grinding towards your goals every day will get you to where you want to be. Be Patient, Be Humble, and Most Importantly Believe in Yourself. You will know when the time is right to make the leap.

 Happy Wholesaling!!


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