Best Way to Get Started

[Zack Kosenka]

Hello and TIA for any advice/help. 

For the last 6 months or so, I have been studying real estate investing and have been shopping around for a SFH to rent out. I believe this will be a good way to cash flow some money to reinvest in another property. The only issue is, finding a good deal! It seems all the homes I look at are overpriced and wholesalers want cash. I have some money saved up but not 60k.

I am thinking about finding motivated sellers and buying directly from them. Have any of you found success in acquiring a house this way? And if so what is the best way of generating a list? Preforeclosure list? Or should I use the MLS and low ball offers until one sticks?

Thanks,

Zack from Indiana

[John Jones]

@Zack Kosenka That overpricing is more of a reflection of the national market being a sellers market so there’s a lot of overpaying going on.

As for marketing and buying direct from seller, our team has had success in doing this. We use text message marketing but there are many different strategies you could use. I'd advise anyone to pick one and put your effort into doing that really well whether it's cold calling, texts, mail, etc. Lowball offers on the MLS is a good method too as long as you approach it with some strategy. If you're limited on capital, have you considered borrowing the money from hard or private lenders?