New investor needing help on a marketing/acquisition strategy

[Patrick Martone]

Hello Biggerpockets community,

I am a newbie investor looking to make my first purchase in the next 3 months. I will be taking out a Line Of Credit on our current home in addition to my own cash. I expect to have around 250k total.

I am partnering with my father and working full-time project managing the Rehab process.

These are my tentative goals for the next few years.

2017: Buy first SFH flip

2018: Flip fourth SFH, reach 300k in equity

2019: House-hack MHR, phase out of SFH flips

2020: Buy subsequent MFR, bid at auctions

2022: Buy Commercial Property, Participate in syndications

Right now I am looking at properties in NJ as it is easiest. I have I feeling I will end up in PA due to the regulation, taxing, and cost in NJ.

How should I proceed with my marketing campaign as I have not decided on a location. I move around NYC, PA, and NJ a lot so I have a basic knowledge of the surrounding areas. I don’t want to begin direct mail until I am certain of a location.

Would it make more sense to go with an agent?

Should I do a We buy houses post on Craigslist to test the waters?

I would like to go for REO properties ideally?

Any insight on how to proceed with marketing would be amazing! Thank you

-Pat

[Ray Lai]

@Patrick Martone

Looking at your 2017/2018 goals, it looks like you're not going for a high deal-flow. MLS is hard to find a good deal these days but it can definitely still be done if you spend a lot of time searching. If you have the time, getting a real estate license would greatly help you with your plan but using a good INVESTOR-oriented realtor is a good way to get started. You could house-hack a quad if those are available in your area to get some good landlording experience and good cash flow rather than live in your SFH that I'm assuming you're living in since you're taking a LOC on it.

Craigslist has lower probability of success but if you have the time, it could yield deals. It's really about how to use your time effectively.

If you're looking for scalability for more deal-flow direct mail is a way to go.

If you're looking for creative marketing - since you're in high density / high competition area you could take place a legal sign in a high traffic'd area by working with a local business.

Before you do *any* marketing though, you want to make sure you know how to close a deal and how to talk a seller and have a contract ready. Marketing before doing that is not a good use of resources. If you use a real estate agent you're talking ~3% commission.