Why Wholesaling?

I decided today to answer one question many times I am asked why do I recommend wholesaling to those that are starting in the world of real estate investing. I have been in real estate investing for over 18 years (whoo hoo!). During those 18 years I have seen the ups and downs of the market and I have seen and learned from the mistakes that many people make in real estate investing.

One of the mistakes I see often made by those starting is that they chew more than they can swallow. Hence, the reason I think that one of the best ways to get started is through wholesaling. Wholesaling can be defined as the art of contracting properties that you plan to resell to another investor, wholesaler or retail customer before you close on the property.

So here are five reasons I think you should consider wholesaling when you are starting:

1. It lowers the risk of getting involved in real estate investing.
2. It is an excellent way to learn your market and learn more.
3. It is a great way to meet other investors and learn from them.
4. You can generate cash quick.
5. You will find great buy and hold opportunities to build your real estate portfolio.

Today I still wholesale transactions as part of my real estate investing strategies. It has been the way I select the properties I want to keep and I know that the properties I wholesale are great quality properties. Start slow and take smaller bites as you start.