What are the best investing strategies right now?

Question

Hey all!

Given the weird spot the market is in, what do you see as being the best strategies for investing right now and the near future?

We just sold our live in flip a couple months ago and have been working on our new personal house, but now that the projects are nearing a close with that, we want to make the rest of our money keep working for us.

I’m thinking of doing some smaller flips to build up some cash for a bigger purchase. Start BRRRRing? My greatest issue is living 1 hour north of NYC, so nothing is cheap really.

Any help is greatly appreciated.

Curt Smith · Answer

The  comb of events, high interest rates for >6mo or more has created more expired listings then we've seen in  many years.  I'm seeing those sellers progress to the FSBO sites!!!    Not rocket science to guess theres more motivated and stuck sellers then we've seen since 2020-15!!

Tripple down on your creative deal learning!  Buy the BP Zero down book(s), other resources, watch youtube videos on subject to, lease option, talking to stuck sellers, how to negotiate "taking over the payments" and "would you take a small down at closing and then monthly payments?"

I reco you paying at least 2 of the found on youtube creative trainers for their learning/system/contracts/videos:  Joe McCall,  maybe John Jackson.   Do a few weeks of searching on youtube creative/subject to and pick at least 2 folks to buy their education.  One will not cover all angles and you may learn from bits and pieces from many.

Real estate profit has always been a knowledge gig.  Invest in your network:  join the local REIAs in your area, all of them.  find REIA in meetup.org.   Buy courses, boot campes, read books, build your local network (locals are in REIAs)).   Talk to sellers (easy to say but how?) .

I have a free pdf on all the docs needed to close and post closing manage a buying subject to the existing financing.   Please connect THEN PM me.  I hate to have a sub to go south, its complicated.

My strategy going forward is to SMS market to expireds and FSBOs a drip campaign.   Lots of deals if I wanted to buy deals with cash or financing.  Some deals will take rent before I buy.  Fewer will take payments.   My focus is to toss all those leads and just look for stuck sellers who have but one chioce of me taking over their mortgage payments.   This is my focus.  Bought one back in Nov.   Have bought a few sub tos yrs prior.   I'm using a business in a box all setup for you tool to SMS to creative leads;   creativereireply.com .  Not cheap, but it works.   I will say the easiest deals to buy are listed, just setup a zillow email alert!!   I bought 90% of my rentals this way.   When you move to off market, post cards, cold calling, SMS, buying lists, buying a tool that pulls in expireds etc, your time between deals and costs to buy all go up.   Why am I SMS marketing using a tool costing $$/mo?  Because I dont need or want to buy any more rentals with bank financing (or DSCR lender financing like kiavi.com,  lendingone.com), and am only interested in creative deals, win-win, more interesting to me and more helpful to the seller.  I'm doing the only system that I know from years at this that works today.  Post cards to vacant/absentee is super expensive and IMHO doesn't work today.   Atlanta area (hot for some time) pro-wholesalers tell me they spend $5k-$8k/mo for post cards and FB/google PPC.  Geeze!   My $100/$200/mo is cheaper.

Side topic; what mo / costs to I have,  Maybe between $500-$700/mo, one is propstream.com / $99/mo.  Search here on propstream.   Many other lead gen, local deed access service, a few skip trace services;  premium.whitepages.com,  peoplefinders.com (one service is not enough).

Good luck to all,  curt

Blake Novotney · Answer

I agree with what Curt said. There is a crazy high percentage of people who have locked in mortgages the past few years with rates under 4%. My idea would be to take advantage of that with sub-to whenever possible and go after those motivated sellers to do a creative finance deal.

Scott E. · Answer

Nobody has a crystal ball, nobody knows. But there is money to be made in any market cycle, so it's important to deeply understand where we are at today in order to pick a somewhat safe strategy.

Lately I'm talking with other developers, agents, wholesalers, contractors, designers, supplies, production home builders, etc literally every day. I'm also consuming as much data as I can around rates, inflation, inventory, migration, etc.

All that being said, to answer your question, the best strategy for me right now is to sit back and observe. I already have most of my capital tied up in a couple of projects anyway so I'm not going to be a buyer unless a deal of a lifetime shows up. But even if I was flush with cash right now, I'd be treading super lightly until the market picked a direction.

So to sum it up and answer your question - The best investment strategy right now, in my market, in my opinion, is to not be a buyer or a seller. Let the market pick a direction first, which will probably happen before the end of the year. Then make some moves.

Dylan Speer · Answer

I suggest investing in DSTs. DSTs are 1031-exchangeable syndications that allow investors to invest in whatever property type they chose without actively managing anything. These pay monthly cash flow and offer growth on the exit. The reason I like DSTs right now is because many of these funds have acquired properties in the last couple of years at 2-4% interest rates and are still raising capital. Therefore, they are allowing investors to time travel back and benefit from cheap debt.

I actually work at a firm that specializes in helping clients exchange into DSTs. Am happy to chat.

What are the best investing strategies right now?

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