BiggerPockets

If you are apt at finding and managing deals, you can bring in an equity partner. They put up the down payment and arrange bank finance and you locate, structure, and manage the deal for an agreed upon split. To utilize this strategy most effectively, use an entity, an LLC partnership is recommended for rental properties.

If you are looking at projects requiring rehab, you can take private money loans at set interest rates (similar to a HML) use their funds to rehab the project, then refinance and cash them out. This strategy may be a bit more difficult given our current lending crunch, but it still can be done.

Subject to is a viable & profitable startegy for RE investing, however, a great deal of " desperate sellers" today are desperate because they have terrible arm loans or neg am, or high interest rate loans. Finding deals in the area you want to invest using a sub 2 limits your options in todays market.

Using partners or private money gives you the ability to go after any seller, rather than just the ones with decent loans. You can use IRA/401k funds, yours or others) as well as form partnership LLC's with other parties to acquire investments.