Wholesale Or Bird Dog, Pros/cons For Each?
Hi everyone, my ultimate REI goal would be to have rentals and to be a developer/builder, but in the meantime I wanted to get started by wholesaling. Isn't that going to give me a bigger payoff vs. being a birddog? Can you tell this newbie pros/cons or give me tidbits of wisdom to ponder to help me make my decision?
Thanks,
Ginnie
Let me start by saying I am not an expreienced investor but I read a lot and am currently looking for my first deal. Anyways, to sum it up birddogs make less money but they are better suited for begineer investos because they are exposed to less danger. Wile as wholesalers are definitly exposed to much more danger witch might not be the best thing for the newbie investor.
Best of luck,
James
Godiva,
Yes you will get a bigger payoff if you wholesale vs. birddogging. There are pros and cons to each if you are a beginner.
If you are unsure and don't have that much knowledge then birddogging is a good way to start. You can hook up with a more experienced investor and they will gladly help you for the deals you bring in, plus you get a nice fee. This is also nice when you don't have cash or if you don't have your beginner checklist done. It's also good if you just don't have the knowledge or experience to put a deal together.
Wholesaling does give the bigger payday. If you come across a deal that you feel is a slamdunk, then go for it. I only suggest this if you feel comfortable at your level of experience. Also, each deal is different so don't blindly accept that statement. Please have an exit strategy ahead of time if you do decide to wholesale. The cons of course are the increased risk, and worry that comes with this.
Personally I say don't restrict yourself to one or the other. Some deals call for locking it up under contract. Others you'd be better off birddogging. There are way too many variables to list off why this is the case. Maybe the deal is too big for your level of experience, or maybe there isn't enough time and you don't have your ducks in a row.
Maybe you think, heck I'll just sign it up and give my $10 deposit...not much to lose right? But what happens when you have to weasel out of the deal because of your inexperience? No problem to you, but you just screwed the seller who could have been helped in more capable hands. There are a lot of things that come into play that you don't read about in the courses/books, and since you're a newb, you won't know what to do. Sure you can post a question and hope you get some good answers...but someone's house and your rep is on the line.
I've birddogged 1 deal so far and I've locked up my current deal to be wholesaled. I've lost out an a few too, and could have easily lost out on these deals. With that said, I'd suggest birddogging your very first one.
Most importantly, decide to do something and get out there doing deals one way or another. Good luck.
Davis
thanks!
Davis, can you go into further detail about what a beginner checklist is?
Who takes a 10$ deposit? Is that true?
There is a lot for a checklist. What's on it depends on what you want to do. Think marketing, professional contacts to make (attorney, agent, etc), forms, etc etc. You get the picture....right?
Here's the big one, read. Also, try not to post questions when the answers have been posted on this site over and over. People don't like having to answer the same questions over and over when there is a nice search function. I've been guilty of this too, but I try not to ask a question now without looking for the answer myself. Put some work into figuring it out yourself.