New investor strategies

[Duane White]

For a new investor trying to purchase more SFR's, what niche/strategy will yield the most results, direct mail for subject to and owner financing or finding partners/private money?

[Lou Castillo]

First, it is deciding what is your exit strategy. Sounds like you want to renovate and re-sell - correct?

I look at direct mail as a marketing/acquisition strategy and subject to/owner financing and private lenders/partners as financing strategies. My approach is to market to motivated sellers - find a good deal, and them employ the best strategy to create a profitable deal.

So as a definitive answer to your question, your best results will come from marketing to motivated sellers and you should line up financing so when a good deal presents itself, you can close.

[James Wise]

You have to work all of the above.

Marketing is key to finding the good deals but you also need to be marketing to your financial partners so you have the capital necisarry to take down the good deals.

[Duane White]

Hi @Lou Castillo , 

My strategy is actually buy and hold.  And now that I think about it, you are correct in saying that direct mail is a marketing/acquisition strategy and subject to/owner financing and private lenders/partners are financing strategies. 

Being that I am a buy and hold investor, what do you think would be a better use of my time, money and effort, to market like a wholesaler for deals, get deals from a wholesaler or take my chances with finding a good buy and hold deal from the MLS?

And as far as the financing goes, I assume that is just a matter of me picking a strategy and getting good at that one strategy, be it, sub to, owner financing or going the traditional route, putting 25% down, going to the bank and getting a loan? 

Thank you for your time, I appreciate your willingness to expound on my questions.

[Duane White]

Hi @James Wise,

Being a new investor, I'm just not sure what type of marketing will produce the best results and I am sure that is subjective because it depends on how much effort is put into any one type of marketing technique.  And the same goes for financing, one can become an expert at executing any of the financing options whether it is sub to's, owner financing, etc. it just depends on where one wants to put their effort.

I suppose I kind of answered my own question here, but thank you answering my question, it helped me to expand my own thoughts.

Duane