Why Every New Real Estate Investor Should Start By Wholesaling Homes
2014 is shaping up to be one of the best years for real estate investment in the United States. Home prices remain incredibly attractive, interest rates are low, and interest is high. Thousands of people are expected to invest in real estate this year. However, while there are many different strategies to explore, there are many good reasons for all investors to start wholesaling homes.
There are a variety of real estate investment strategies available to those interested in the 2014 US real estate market. Some options include acquiring or wholesaling mortgage notes, repairing and selling rough houses, land and lots, building a portfolio of rental properties, investing in mining rights, turnkey investment, purchase and lease of commercial offices, commercial and industrial buildings, private mortgage loans and more.
Still, wholesaling homes not only continues to shine as one of the best short- and long-term strategies, it’s a great way for everyone to get started, regardless of their end goals.
Wholesaling is often chosen as the preferred gateway to real estate investing by those with limited resources who need quick results. It is perhaps most famous for its speed of producing large sums of cash, but it also means incredibly low risk, very high returns, and more opportunities for real estate deals with little to no down payment. Some of the secondary benefits also include the ease of committing with a minimal investment of time, being easier to learn, and offering much more flexibility over time.
For all of the above reasons, home wholesaling is a great gateway to all other forms of investment. Most of the other strategies should only be considered, or may only be possible for those with a considerable amount of liquid capital, or at least a reasonable reserve fund and little need for immediate income or cash flow. Those lacking in this area can quickly accumulate disposable cash and wealth by wholesaling and then expanding.
For those who already have a lot of cash or access to significant credit, wholesaling can be a smart first step in getting your feet wet and hands-on experience without having too much at stake. It will help you get comfortable with negotiations, learning about the local market, real estate contracts, and opening lots of new doors, while making great connections without breaking your teeth on deals that could be very expensive if a newbie rushes them.