Flipping As Startint Out, Poor Cash
I have read some articles from many expert s and come to the conclusion that if you don't have cash, flipping is the only way to go to build up cash reserve. Once you have 25K in reserve, you can really start looking into investing where you will be in the middle of deals, and the reserve will help you when things go wrong. Otherwise you will be screwed really easy when deal do bad and you are in the middle of it. I am not saying it's impossible to go straight to buying investment prop. but risks are very high if things go wrong.
Anyone disagree or have done othewise?
Flipping is usually as good way to start and get some education. I would also recommend that you do a bit of homework in your market area and on this board and find a "method" that suits you, or you understand and start with those.
You can start out with L/O or sub2 with little money also. I just think people get spread out when they start with all the different way to do things and then get a bit confused. Learn a way, do a couple deal, THEN expand your expertise.
Knowledge and expertise are TWO different things.
Plus if you are comfortable/confident enough you can make yourself more money on the L/O or sub2 deals.
James_CA,
I do agree with dnvrkid in that it would be wise to choose a technique that suits your investing style and then educate yourself in that technique.
The one thing I believe will stand in any investor's way in their pursuit of success is their failure to get their "feet wet". Some try to educate themselves to death, spend three or four years doing so, never do one deal and become perplexed and quit before they get started.
There is nothing wrong with getting with an experienced investor and starting out birddogging for him/her to gain an education. You should choose an investor who does deals using the technique you are interested in. After you have a working relationship the experienced investor will probably allow you to "stick around" through the close of the deal which will provide you with great OJT. He/she will pay you for your services if you find them deals and the next thing you know, you'll have enough cash on hand to partner a deal or do one on your own.
Good Luck.
Dave
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