On this podcast episode I talk about getting started in real estate and the three main investing categories of real estate which are wholesaling, fixing and flipping and rentals.
When you first start out in real estate, you need to decide if you want to focus on learning how to wholesale, how to fix and flip or how to buy and hold rental properties long term.
It is tempting to want to learn all three investing strategies at the same time, but this is a classic beginner’s mistake because each strategy requires a different and unique skill set. You will actually advance more quickly as a new investor if you focus on one skill set as a time (for example wholesaling).
For most new investors, wholesaling and learning how to locate deals for other investors is the best way to start out because it gives you the most learning and requires the least amount of money. You don’t risk any money wholesaling and if you are a beginner this is a very key and important consideration.
If you have a good job and decent credit then you should be looking at building up your rental portfolio as well. And you should take the profits that you make from wholesaling and put that money to work in fixing and flipping and buying more rental properties.
So you can learn how to do all three but I know many investors that make 7 figures a year that only wholesale or only fix and flip (meaning you don’t have to know all three). But whether you fix and flip or wholesale for a living you should still be buying investment properties for the long term since that is how you will create true wealth for your future. And that is what will give you financial freedom. I discuss all three strategies and the pro’s and cons of each strategy on this podcast.