In episode 326, Mike Simmons hosts Mike Cowper where they talk about deciding on who you are as an investor. They talk about wholesaling and flipping. They go further to describe the structures of these models of investing and point out the differences.
To build a successful flipping business, what you need is lead generation. With these leads, you can cultivate prospects into actual customers. As a new house flipper, you don’t need a lot of these leads at first. At the initial phase, you need to focus. You need a little amount for you to manage them better. As time passes, you can add more to push you to grow and add extra revenue.
On the other hand, a wholesaler may need a lot of leads. If it may seem overwhelming, consider adding an administrator to your team to offer a helping hand.
As a flipper, you ought to know quick and efficient ways of raising money. In the flipping business, you will always be required to raise money for different reasons.
The framework of a wholesale business is more transactional than a flipping one. You have to look at the properties from the perspective of a landlord and a house flipper in order to effectively carry out a wholesale business.
Modes of Real Estate Investing
In episode 316, Mike Simmons talks about the various modes of real estate investing. He alludes that he would hear of many real estate success stories online and conclude that each investor knew how to work in the real estate sector. However, he goes further to say that he realized that there are many ways of doing real estate business and there is no right way.
Every technique that you use in real estate investing is viable as long as it enables you to reach your desired investment goal.
However, this is not an argument against having a role model whose path you want to follow. Any real estate investing 101 advice alludes to the real value in following their investment strategies.
Most new real estate investors always seem to be in a rush to close deals and sign purchase agreements when starting out. A question arises on whether it is ethical. In episode 313, Mike Simmons delves into this issue. His position is that to be successful; there is a need for massive action. This means that at times, one has to take steps and make decisions that are unfamiliar. At times, the experience is the ultimate way to know the impact of actions and decisions.
He asserts that one cannot get the experience to make offers on the property unless one starts making actual offers. Thus, in an ethical perspective, utilitarianism is the order of the day. The utility of actions is what should guide some investment decisions.
To listen to more of Mike Simmons opinions and assertions on real estate investing 101, listen more to his podcast.