Hello Everyone! I'm just starting out trying to make a move into the real estate investing world. I currently rent so I'm thinking house hacking is the way to go. I have a realtor and have her on the hunt for any deals on the market. I'm just wondering if anyone has actually employed some of the tactics Brandon talks about with off market finds (cold calling or mailing), how you went about it, and how they turned out?
Also, is house hacking the way to go or am I missing another strategy that may be good for a newbie?
Any advice is much appreciated!
Hi @Seth Falcon and welcome to the REI world here. So I find a good amount of off market duplexes for my buyers. I currently am working with 4 owners. I find networking with investors and becoming a part of the community is the easiest way to find deals. When you become a providing member of the rei community people will do deals with you because they like you and know that you know what you're talking about. Sure mailers and cold calling/texting works but we all get tons of those calls, emails and texts and don't really care for them. I would say to network with other investors and investor agents is the easiest way to do things.
@Seth Falcon -I'd just post here what you are looking for and where to see if anyone has a lead/something to sell.
@Daniel Anshus obviously there is this site which is great but do you have any other suggestions on how to do this? I’ve looked into networking events through chamber of commerce but I don’t really know how one networks with covid protocols in place haha.
@Seth Falcon Welcome from another twin city’s investor. House hacking is the best way to get started, but finding a good place at a good price can certainly be difficult. Keep networking. There are several quality groups in the area to join. I’m sure more events will be starting in the near future. Message me for a couple of those groups if you’re interested. We’re not supposed to comment about them here so that’s why I say to message me. Don’t worry, I have nothing to sell you and I’m not a leader of any group.
As far as mailings and texting, I agree with Dan. All of us with multi family properties are receiving these texts with “incredible” all cash offers of $215k for a 4-plex that rents for $6,800 per month in the metro. The response rate from those campaigns has to be pretty low because those are the types of offers we expect. That said, I have never done a campaign myself. Maybe you can prove me wrong. If anyone actually gets metro area properties (not North Minneapolis) under contract at the 3% rule when most of us struggle to find 1% properties then I will for sure join in the mailing/texting campaign strategy.
@Seth Falcon I have a list of meet-ups that I attend. Currently, they are online which is not nearly as good for networking as in person but that will change and it's still helpful. There is one at 4 pm tomorrow on zoom. PM me and I will send you the complete list.
@Seth Falcon Welcome! House hacking is the best way to get started especially if you need a place to live. Low down payment amounts for owner-occupants allow you to keep cash for future purchases and realistically any repairs that arise in the first year or so (something always breaks after you move in!). Inventory is scarce right now but letters can work. You only need to find one property so you can be far more targeted in your approach. Networking is the best way to grow your portfolio over the long term so definitely join as many groups as you can. Everyone is looking for a "deal" right now so even off-market opportunities (if priced right) have lots of interest. What areas are you looking in?
@Alyssa Strom west side surburbs (Maple Grove to Brooklyn park down to Eden prairie) my girlfriend works in MG and we have to stay relatively close.
@Seth Falcon I would check the website meetup for lots of local meetups. Also there are a lot of local investor facebook groups. There is a new meetup where a bunch of us local investors are meeting up and going on a walk and getting some face time with other new investors and people we havent seen in a while.