I'm trying to invest in Virginia about 35-40 mins south of DC. With townhomes 300k and up and SFR's around 500k and up. What would be the best method for me to invest 20k. Wholesaling, flipping or buy and hold. I'm hearing Fredericksburg, Va which is 15mins south would be the best market for me to invest. Any ideas on where I should start or which method to take? I already own a home so house hacking wouldn't be feasible.
I live in Fredericksburg and there are some deals, but very hard to come by. For 20k you either need to find a private lender or hard money, neither of which I'd recommend if you haven't done any deals yet. Wholesaling is a good way to start. You could get an idea of what a good deal is, maybe learn from some buyers in the process without the risk. If you find a good deal, money will come. Maybe you can try and get a piece of the pie with an investor if you find a good deal. You can be more involved in the actual rehab, learn some things and limit your risk.
I have never had to put 20k down on a house. When you find a good deal, the money comes to you. BUT I dont find deals on the MLS or on craigslist where everyone else has access to them. You have to get out there and FIND deals, MAKE deals.
Driving for $$$. Look for a nicer neighborhood, but look for the ugly properties in that nicer neighborhood. Look for signs of distress or abandonement. Maybe high grass, maybe no meter or something that makes the house look like they dont want it anymore.
Then you track down the people and ask them if they are willing to sell their house. If they are out of state, send them a letter that asks if they want to sell. Keep sending letters until they say to stop or they sell you the house.
That is just one way, but there are lots of ways to find the deals.
Since you go to your local REIA you should already know plenty of people who are already in the business who buy in your area. Call the one or two who do plenty of deals and let them know that you have a great deal and if they want to partner on the deal.
BAM high dollar properties found and done with no money.
There is always a way, you just have not networked enough with people in your area yet.
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