Approach for next investment property!

[Kyle Brown]

I have successfully rented out my first duplex and I am seeing the results, which now makes me wonder what should my next investment property be (duplex, triplex, 10+ unit complex, etc)? I do want to take the fastrack, so I can get out of my miserable 9-5 corp job, but I also do not want to get into anything too much that I cannot handle. I do not have that much for a down payment at the moment, so would partnering up on a deal be the best way to go or possibly buying another duplex that I can self-manage? I am wondering what other successful investors have done in their early stages and the strategies they used.

[Greg Dickerson]

@Kyle Brown yes wholesaling is a great way to start. Once you have done several deals gained some experience and have at least $100k set aside then you could try a flip. For now I recommend you focus on getting really good at finding buyers and finding good deals.

First step is to educate yourself on the business and your market. You really need to immerse yourself and learn all you can. Attend REI groups and meetups and network with other experienced investors.

Start with finding cash buyers. You will learn a ton from them and as you build a relationship they can potentially become a private lender or even partner with you on some deals down the road.

Different types of cash buyers are flippers, buy and hold, subject to and lease option. You need to find several of each of these types of buyers and learn what they are looking for.

Best way to find cash buyers is networking at local REI meetups, masterminds, Facebook groups, Realtors, title companies, closing attorneys, property management companies, auctions, Craigslist, and bandit signs.

You can search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties. You may need to search by the address of the buyer as they may change their name or the name of the entity on each purchase. You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.

Best way to find motivated sellers is to purchase lists and compile lists from city and county for 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, high equity, etc. and mail or cold call.

Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, foreclosure sites, put out bandit signs, billboards, newspapers, other offline publications.

You can use pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online and social media.