What’s your investing strategy of choice... - and why?

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What’s your investing strategy of choice... - and why?

Mike G.
Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
So I’ve educated myself on and have employed a few strategies for real estate investing. Buy n hold, wholesaling, BRRRR, tax liens, next on my list is sandwich wrap and lease option and of course the fix n flip whIch I have yet to perform. With such a vast array of investing options available coupled with many market variables, if you had to max out your profit and time on a deal what strategy would you use for the purpose of building up capital for future investments. This is where I am at and looking for feedback from more seasoned investors. Yes I want a good cash on cash return, yes I want good NOi, yes I want to build long term wealth but right now I’m looking for velocity of my capital to put to use to build up more capital to rinse and repeat in several deals a year to get to the point where I can come into a larger Multifamily project ( 75-100) unit apartment or 150 space mobile home park to purchase and manage for my retirement. If you needed to scale up quickly and by quickly I mean 10 year time frame what would you do to make this a reality. What strategy would you use and do over and over or would you do one before the other and mix and match? Asking for educational reasons so let’s hear your opinions BPers. What worked for you? More importantly what didn’t ? Knowing what you know now what would you tell your best buddy if they were going to start and say that if they did A-B-C-D that in 10 years they would be in a real good position equity wise to make a move into a large Multifamily acquisition at that point. .... The forum is yours ...
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
7y

Everything works somewhere, Nothing works everywhere.

@Mike G. My main strategy is tax lien investing. But that is not something I would recommend for most.  Fundamentally I consider myself a vulture.  I am looking for the best deals, regardless of how they come or where they are. 

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  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    7y

    There is no one thing to do. There is no best way to do anything. Everyone is different and everyone will excel in different ways.

    When you know how to sub-to, when you know about tax sales, foreclosures, lease options, etc. you can make a deal happen more easily and more profitably.

    It is constant hard work and hustle that will get you to your goals in a timely manner. And also being frugal and not blowing your wad on a maserati when you make some money.

    -Frugal Real Estate Guy

    13Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Wholesaling can bring a little money quickly. Flipping can bring a little money, or a lot of money, but takes a lot more effort and time than wholesaling. Those are the two options for getting cash so you can invest in buy-and-hold for the long game.

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  • Jeremiah Crampton
    San Antonio, TX · Member since 2018 · 12 posts · 3 votes
    7y

    Thats what is so awesome, there’s so many ways to get there!

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    7y

    Everything works somewhere, Nothing works everywhere.

    @Mike G. My main strategy is tax lien investing. But that is not something I would recommend for most.  Fundamentally I consider myself a vulture.  I am looking for the best deals, regardless of how they come or where they are. 

    15Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    "Fundamentally I consider myself a vulture."  Love it..

    We are also proponents of opportunity devouring 'REI Carrion'. Swoop in, grab it cash & then flip it 1.5-2x purchase, then hold the note or contract for deed.

    Find a niche & focus on developing an exponential ROI.

    10Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y
    @Mike G. I like rentals and investing in private notes
    3Reply
  • Josh Coleman
    Specialist · Jersey City, NJ · Member since 2018 · 11 posts · 5 votes
    7y

    Private equity in Single-family and Multi-family developments. Less work, great returns. Most people are generally too busy to hunt deals unless that's what you do full-time but once you find a deal there's a lot of work still left to do when you're doing wholesale, rentals, and flips. With private equity, you put your money into the deal, let the money work while you work and sleep, then collect the returns. Flips/Rentals can be great too just more work if you're doing it yourself. Manage tenants, maintenance, etc. and if you hire all that out it cuts further into your margins. In the end, it's all preference and what you want to put into it. Do your homework and do what's best for you. 

    3Reply
  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    7y
    @Ned Carey

    I was about to hit a tax auction here in SC then the auction got canceled. What would you consider the best way to get involved in tax lien investing? 

    Alex



    Originally posted by @Ned Carey:

    Everything works somewhere, Nothing works everywhere.

    @Mike G. My main strategy is tax lien investing. But that is not something I would recommend for most.  Fundamentally I consider myself a vulture.  I am looking for the best deals, regardless of how they come or where they are. 

    1Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

       @Rick Pozos I agree with you, there is many ways to skin the real estate cat no doubt!! I believe that its constant hard work that will get you results as well. I am interested in subject to and lease options and wrap around mortgages as well. Lots of moving parts but definartly doable.

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    see below

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Nathan Gesner I agree as well, wholesaling is velocity of cash and flipping can bring more money however your absolutely right, its much more involved and time consuming. What do you prefer as your method of building up cash for long term buy n hold?

    1Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Jeremiah Crampton yes there is! what path are you into for REI journey so far?

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Ned Carey

    " Fundamentally I consider myself a vulture." Ned that has got to be one of the most real statements I've come across on here. I went to a tax lien seminar about 3 years ago by a guy named Sean Higgins. Ever heard of that tax lien guru?  Ned just out of learning when you say that its not a strategy that you wouldn't recommend for most, why is that?

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Pat L. not sure I understand what REI Carrion means, but I like your strategy. I think in my current market conditions call for BRRRR. But that's why I made this post to get a feel for different strokes for different folks you know. . . . . thanks for that.

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Caleb Heimsoth

    rentals is great. . . any resource you can share to learn more about private notes?

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Josh Coleman now that sounds like a niche within a niche bro. Based on what you described for private equity I'm defiantly interested in learning more. Can you point me to any resources for learning more about private equity. also how did you come across it and / or get started with it?

    0Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Alex Franks what investing methods have you used in your career thus far? Ive made some offers on MHPs in SC and I like that niche there. Have you looked into that?

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y

    @Mike G. I am a fan of picking a solid strategy and repeating the process. For me it is buy and hold. 

    When you listen to the podcast and read the forums, you see so many strategies. It can leave someone the impression that to succeed you need to do it all. I would argue the opposite. If you are too scattered, it is hard to get really good at any one thing. Trying different things is good but the goal should be finding a niche. It doesn't mean you can't evolve, but like the old saying goes, "jack of all trades, master of none".

    6Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    @Joe Splitrock in the real estate agent arena we have a simple saying for that concept...there is riches in the niches.  You find that niche and you attack it, and those people often make more money than the generalists. 

    @Mike G. Your goals, experience, and skills play such a part in what you should do.  Ive done most things in real estate.  @J Scott obviously kills it at flipping...I suck at it, because I have different strengths than him, and enjoy different parts of the business. If I try to force my square peg into the round hole of flipping, which I have done, then I miss the opportunities to spend my time more productively on the things Im really good at.  

    So figuring out your strengths is integral to success.  Figure out what you are good at, and attack it, because we are all good at different things.

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    7y

    @Ned Carey pointed out that *WHERE* plays a role.

    @Russell Brazil pointed out that your *GOALS* and *EXPERTISE* plays a role.

    Those are three REALLY big factors that you need to consider.  

    What is working in your area?  What are you trying to accomplish?  Where does your expertise and strength lie?


    I'll add two more to that list:

    WHEN:  When are you investing?  Now, in this part of the economic cycle?  Or 6 months from now, in what could be the next part of the market cycle?  Or two years from now, in what could be the next, next part of the market cycle?  Not every strategy works well in every part of the cycle, but there are strategies that do work in each part of the cycle.  (I'll use this as a little teaser for my next book that BP will be releasing in a few weeks :) )


    $$$:  What is your financial position?  If you don't have a lot of cash, you probably don't want to be creating and relying on monthly income from seller-financed notes?  But, if you have tons of cash, that might be a great strategy?  Different strategies will leverage different cash positions -- pick the one that is best aligned with your position.

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    10Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Joe Splitrock  

    I am a fan of picking a solid strategy and repeating the process. For me it is buy and hold.

    When you listen to the podcast and read the forums, you see so many strategies. It can leave someone the impression that to succeed you need to do it all. I would argue the opposite. If you are too scattered, it is hard to get really good at any one thing. Trying different things is good but the goal should be finding a niche. It doesn't mean you can't evolve, but like the old saying goes, "jack of all trades, master of none".

    Joe that is very true and I completely agree with that advice. That is the ideology behind this post was exactly that, if I'm going to pick a trade which one generally speaking is the most favorable and used by many on here and why. I do like the buy and hold and that is the way to build long term wealth. Excellent contribution by the way, thanks for weighing in.

    1Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Russell Brazil 

    in the real estate agent arena we have a simple saying for that concept...there is riches in the niches. You find that niche and you attack it, and those people often make more money than the generalists.

    Your goals, experience, and skills play such a part in what you should do. Ive done most things in real estate. obviously kills it at flipping...I suck at it, because I have different strengths than him, and enjoy different parts of the business. If I try to force my square peg into the round hole of flipping, which I have done, then I miss the opportunities to spend my time more productively on the things Im really good at.

    So figuring out your strengths is integral to success. Figure out what you are good at, and attack it, because we are all good at different things.

    That is right in line with what Joe said as well. That's a comment that comes from years of wisdom so thank you for that insight Russell. As far as my goals is to eventually get 1000 doors as rentals. More in the multifamily/MHPs arena than SFRs for sure. The strengths and weakness idea is a good one and one I need to revisit. I know my strengths are being a people person, sales and relating to people and cold calling. I will do the exercise and write out what a list of both then figure out what niches of REI fit for my strengths and which do not. Good stuff as always Russell... . .

    1Reply
  • Mike G.
    OP
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @J Scott

    I'll add two more to that list:

    WHEN: When are you investing? Now, in this part of the economic cycle? Or 6 months from now, in what could be the next part of the market cycle? Or two years from now, in what could be the next, next part of the market cycle? Not every strategy works well in every part of the cycle, but there are strategies that do work in each part of the cycle. (I'll use this as a little teaser for my next book that BP will be releasing in a few weeks :) )


    $$$: What is your financial position? If you don't have a lot of cash, you probably don't want to be creating and relying on monthly income from seller-financed notes? But, if you have tons of cash, that might be a great strategy? Different strategies will leverage different cash positions -- pick the one that is best aligned with your position.

    thanks for the clarity in breaking down the When and the What of the cycle as it makes total sense. I'm about to get your book on flipping as its something I want to add to my arsenal for buy n hold investing. Definatly a great take away is what you said about different strategies will leverage different cash positions. So based off my cash situation I can see what opportunities are out there for investing in RE. so when does your new book come out again ?

    0Reply
  • Joseph Back
    Rental Property Investor · Montgomery, AL · Member since 2017 · 277 posts · 221 votes
    7y

    Currently work for a larger investor who just got started back in 2015 and with the same $200,000 now owns over 80 rental properties using the BRRRR strategy. In my opinion there is no other way to scale with that amount of capital that quickly. I am just getting started myself but now own over 6 units using the same $90,000 recycled using BRRRR over the course of just 5 months. Also a fan because as you grow and pay down the debt on some of your first purchases you are able to take out blanket HELOCS over multiple properties to increase your capital available for investing even more.

    7Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    7y
    Originally posted by :
    I'm about to get your book on flipping as its something I want to add to my arsenal for buy n hold investing....so when does your new book come out again ?

    Hold off a couple weeks on getting the flipping book.  Then you can get the second edition of the flipping book, plus a free copy of the new one...  BP will make an announcement soon...  :-)

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