Tuesday, July 12, 2011

Wholesale Real Estate Investing Myths

I recently saw an article about this recall someone claims that a real estate expert: "There are no risks to wholesale real estate investing." When I read that he almost fell out my chair!

Even a real estate investor for over ten years, and I have been to help people jumpstart their careers in the real estate investor since 2002. My philosophy has always been to help people see both the opportunities and risks of each investment opportunity. So it's pretty shocking to read a so-called "experts" tell people that there is no risk in the wholesale real estate investing.

He explains what it means: that the wholesaler does not put money on the property, but only with looking for another investor who actually get the money. This principle is true - it's kind of a big trade - in which the "buyer" puts the property under contract, but this is not actually purchasing. Instead, word of the contract, so he can "assign" to another receiver in his name. The wholesaler makes money placed on the actual receiver is a bit higher price than the list price of the contract. The more thorough explanation of how it works see the article in wholesale trade.

So, yes, it is possible that the cash is not a risk of a wholesale business. But what this "expert" uses the idea that time is not worth anything. What the article neglects to mention all the time and effort involved in 1) to find interested investors are willing to make the money, and 2) find the investment properties they offer to investors.

It's a loser mentality that I'm constantly trying to shake people a. Something I always try to teach the students: Your time is valuable. I got in real estate investment in the first place that I could use your valuable time to make more money than I can work in traditional jobs.

So, this "expert" is disingenuous when he says that there is no risk. We need to invest time and energy must be taken into account when considering what is actually a good investment strategy. Only a fool, I think his time is not important. So do not be fooled. Creative real estate investing means that you should ask yourself when investigating an investment opportunity or the system: how much time will this really me? And is the cost of my time is worth the rewards and the potential return?

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