Hey there, Cam Dunlap here with a question:
“If you had to start over from scratch, knowing everything you do now, how would you begin?”
Well, it’s actually a question students ask me here and there, so I’ve often pondered it, reflecting on my own journey in real estate investing.
Sure, I would have read more real estate books, taken more real estate courses, and listened to more real estate podcasts.
But beyond that, what would I have done?
Well …
See, when I began, the landscape was both familiar and different. Interest rates were sky-high — 30-year mortgages hovered in the 9% range.
Can you imagine?!
Thankfully, I don’t see us returning to those super-high levels. But back then, I had limited options. My choices boiled down to rehabbing properties or buying and holding them as rentals. That’s all I knew.
The challenge?
I didn’t have money to invest. Sure, my credit was solid, but I’d just left my job, and lenders weren’t keen on working with someone self-employed and without a proven track record. So, I turned to private lenders…
That decision shaped my career and remains a cornerstone of my strategy today.
The Game Plan: Wholesaling First, Rentals Second
So back to our original Q…
If I were starting over today, rather than rehabbing or buying and holding — wholesaling would be my go-to strategy.
Why?
A few reasons…
- It’s fairly straightforward — low barrier of entry, if you will.
- You can wholesale in your own backyard and remotely — loads of markets to choose from.
- You can partner with another investor and split the work and profits, as you learn the ropes.
- It requires minimal up-front capital.
- It’s relatively low risk.
- It’s an excellent way to generate nice profits quickly.
I’d then use the cash from wholesaling to do more marketing and more wholesale deals.
You may be wondering: But what about the deals that I’m unable to wholesale to another investor?
That’s where plan B comes in: rentals. With rents staying high and demand steady, there’s significant potential for positive cash flow if you buy at the right price.
Here’s how it would work: For properties that don’t sell through wholesaling but make great rentals, I’d use private lenders to secure financing. This approach allows you to build a portfolio of rental properties while generating spendable income from your wholesaling efforts. It’s a win-win.
See, private lenders are game-changers for investors like us. They offer flexibility and speed that traditional financing can’t match.
When I started out, they were my only option — and they’ve remained my preferred choice ever since. Whether it’s funding for a wholesale deal or a rental property, private money keeps the wheels turning.
But I do want to stress again… I’d definitely, without question, start in REI as a wholesaler.
What About Rehabbing?
Since I mentioned rentals, you might be wondering about rehabbing too, so I’ll briefly touch on it…
So, rehabbing is another avenue I’d consider today, knowing what I know now, but only selectively.
And there’s a big difference in rehabbing for rentals and rehabbing for retail: Rehabbing for rental purposes costs significantly less than rehabbing for retail sales.
You’re looking at 50%-70% of the cost compared to a retail-focused renovation. That’s a huge advantage of rehabbing for rentals.
The Bottom Line
If you’re starting fresh in real estate investing today, here’s my advice: Focus on wholesaling as your primary strategy to generate cash flow quickly.
For wholesale properties that don’t sell but have rental potential, pivot to plan B — use private lenders to finance them, creating income-generating rentals.
This dual approach — wholesaling for immediate income and rentals for long-term wealth — offers flexibility and stability in any market condition. And remember, private lenders are your best allies in making this happen.
Again, start with wholesaling and see where the journey takes you.
Now get out there and make it happen!