BEST INVESTING STRATEGIES TO PASSIVELY INVEST IN SINGLE FAMILY PROPERTIES
Hey Guys,
People often ask me how I was able to grow my own real estate portfolio while playing in the NFL and today I am going to talk you through the 2 main strategies I use and how you can do the same.
Turnkey Providers — A turnkey provider is a person or most often a company that provides cash flowing properties to investors looking to buy properties. These providers have done all of the work from buying, renovating and even leasing the property out to a tenant so all the end buyer has to do is purchase the property.
Pros
As a passive investor all you need to do is purchase the property which good turnkey providers will even guide you through the purchasing process.
If you have intentions on holding onto the property for 5+ years this strategy can make a lot of sense
Cons
As an investor you will be buying the property at or close to retail price meaning you won’t be getting a significant discount when buying a turnkey property.
Biggest challenge is finding a very reputable turnkey provider.
Leveraging Deal Finders — identifying another investor a wholesaler who can bring you deals they are finding directly.
Pros
You will be able to get properties 20% or more below market value when you are buying directly from investors or wholesalers who are sourcing their own deals.
Cons
You will need to be ready to act fast. Many times the deal finder has a deal locked up and needs to get the property under contract within a few days. Because of this you will have much less time to evaluate the opportunity.
You are solely responsible for putting a team together to help you handle the purchase, rehab and management. If you do not have a team you can trust in place this is not the best strategy for you.
I recommend you consider what is important to you. Are you ok with getting a smaller return over the next 1-3 years with a turnkey property in exchange for passivity? Or would you rather put the work in to build your own team and figure out a way to make quick decisions on properties you are brought in exchange for a major discount on the properties you purchase.
There is no right or wrong answer but if you are looking to get into single family investing passively these are the two strategies I would recommend starting out with!
Best,
DK
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