out in shorter periods — from days to weeks. Real estate wholesalers spe- cialize in locating deals that they can sell, either to a fix-and-flip investor if the property needs work, or to a rent- al investor if it's ready for a tenant. Start investigating opportunities in your area by attending a meetup group at one or more local real estate investment clubs. They're all over the country, and most will let you visit one or a couple of sessions before requiring you to join. There, you'll meet investors of all types, as well as vendors and contractors involved in all phases of real estate investment. You have an excellent chance of meeting someone who has the skills you lack (or don't have time to use) but who is seeking funding. Of course, you're going to want to be careful, check references, and ask for their previous deal breakdowns, especially if you're funding a short-term flip. If you're going to buy a ready-to-rent home at a price below current market value for good cashflow in a market that’s a little outside of primary mar- kets, you can talk to wholesalers at these meetings. Get them to show you the numbers for previous deals and the rents that their buyers are getting. Once you connect with a success- ful wholesaler, you're dealing with someone who understands what you want in a rental home, and they will go out and find homes that will bring good cashflow and they will deliver them to you. All you need to do is buy the property. If you don't want to be a landlord, you can hire management for 8-10 percent of your monthly rent to take care of that as well. You can enjoy the advantages and returns of active rental property management without the bother of the active part. •
truth is that many people have the assets available to buy rental homes, but they're not doing it because they don't have the time or the inclination to be an active investor. They have no desire to pick up a hammer or to su- pervise contractors for a fix-and-flip, nor do they want to scour the local market for a ready-to-rent home and compete against other investors for it. If you're in this rather large group of investors who see the value in real estate, mainly rental properties, there is a better way. You've possibly al- ready checked out real estate mutual funds and maybe those crowdfunding websites where you can invest pas- sively. The question is whether there is something in the middle that will
yield the cashflow, overall returns, and tax advantages of active invest- ment without the active part. There are successful active real es- tate fix-and-flip investors and rental property locators who know what to do, but they are splitting their time between those activities and seek- ing funding. Many use local private money or hard money lenders to fund their deals. These specialty lending sources can charge higher fees and interest for short-term money to fund repairs or to flip a move-in-ready home to a rental investor. There is an opportunity for short- term, high-yield investing if you team up with one of these investors, fund- ing their deals to take your profits
Abhi Golhar is a full-time real estate in- vestor, Think Realty Resident Expert and host of Think Realty Radio and Podcast. Connect with Abhi at BookWithAbhi.com.
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