Lex Levinrad Real Estate Investor, Speaker, Author & Mentor

New investors are drawn to wholesaling. Wholesaling is the one area of real estate where most new investors gravitate to. You can start wholesaling without having and cash or credit and it appeals to people who need to make more money and it also appeals to people who don't have money.  So it appears to be very easy. The concept of wholesaling is very straightforward. You make an offer to buy a property, get an executed contract, and then assign the contract to another investor. That investor is the one who is going to close on the house, fix and flip it or turn it into a rental or Airbnb.  But wholesaling is not for everyone and it's not the only place to start out as a new real estate investor. For example, when my student Andy came into my real estate training program, he was adamant that he wanted to learn how to wholesale. When I asked him why he wanted to learn how to wholesale his answer was so that he could "quit his job and flip houses for a living". But he had a good corporate job with a Fortune 500