What investment strategies are you using to fund your deals in 2023?

[Alfath Ahmed]

I have partook in various strategies within my real estate portfolio to scale my business by house-hacking, doing a full BRRRR, fix & flip, raised private capital, and used HELOC's to bring 20% down on a deal. I have experimented with different strategies and I figured that there are certain strategies that I like better than other. However, my goal and motivation is the same with a little twist.

1. House-Hacking - If I am going to house-hack, I would invest in a B+/A- location in Columbus where I could but the deal 85 cents to the dollar. The goal is to buy the deal with equity so that in a few years when the market re-stabilizes and the interest rate drops, I can re-finance into a standard 20% down conventional loan with a ton of upside and protection because I bought in a appreciating neighborhood. 

2. BRRRR deals - If you were doing BRRRR deals before at 75% ARV then I would now look to do these deals at 65% ARV because you want to make sure that you are buying the deal with enough meat on the bone because everything has gone up in price and the homes have slightly dropped in price.

3. Fix & Flip - Similar to BRRRR deals, I would make sure that I am able to do these deals at 65% ARV. Make sure that you are strategically selling these properties. PLEASE make sure to have great photos. I have seen many investors skip deals just because the pictures did not look appealing.

4. Private Capital - Make sure that you are able to buy these deals at a steal of a price and you can provide your private investor with value. Their goal is to let their money work hard for them. Do everything you can to secure their money. This money could be someone's life-savings, 401k, leveraged life insurance policy, or their inherited wealth. Treat their money with respect and buy great deals and they will always be there for future deals. 

Notice, the common denominator amongst all of my investing strategy starts at buying the deal at the right price. If you cannot buy the deal under-valued with equity from the start then it becomes a very hard and long path to make money. 

How are you changing your investing strategy this year?

[Jacob Muniz]

Great insight! Reminds me of an adage that I've seen in REI many times:

"You make your money when you buy, not when you sell"