That's another strategy though I'm definitely not an expert on that and someone else should weigh in on how that is done.You have to look at what cash on cash return you can get on investment property to insure you can get a good enough deal to beat your 401K year in and year out. 

Before you go down that road, you should get some training on syndication and multi-family deal analysis (not all deals are good enough deals for investors) and ownership.

If the deal is good enough, it is easier to find funding.  

The key is find a property that has a significant discount (ie. you get a good enough deal) so that the bank will be willing to lend 100% of what you put in.  

If you work with the right company, they can find you a property which is in a good neighborhood with good enough renovations so you don't have to worry about cap ex, repairs and vacancy for the first 2-3 years.

Hey Robert - one more thought Having cash and quick closing is good- Find Motivated seller --through realtots --with listing over 90 days, owner lost job or moving out of town - divorce etc--make sure they have 30% or more equity based on current FMV -then pay all cash and buy --do minor cosmetic repairs and sell again -or rent it out.Check BP otehr forums on how to find Pre Foreclosures and Motivated Sellers.Quick sale -does not matter to Lenders -only for motibvated sellers and cash is king for REOs for flipping.If you have good enough equity --you can sell to other investors with some profit -- as said above.champak shah

Sure, he also actively manages the investments (unlike the fund manager), but that's the easy part compared to the analysis of the business prior to purchase.So, while fund managers can't beat the market, that's more because fund managers aren't good enough at the business, not because it can't be done.Remember, Warren Buffett would be the first to tell you that diversification is the *wrong* strategy -- instead, get really good at something, and then repeat it over and over and over again.

I figure anyone who is good enough to compete is worth trying right?

You can take your time on making an offer, but ideally you will get good enough to know as soon as you see a place to know what to offer.

Wholesaling requires finding better deals because you want to take a slice of the deal and then it still needs to be good enough for your buyer.