How do I get there? (by Q [NE]) Aug 17, 2017 11:58 AM
How do I get there? (by RockyMtnLL [CO]) Aug 17, 2017 12:26 PM
How do I get there? (by cjo'h [CT]) Aug 17, 2017 12:51 PM
How do I get there? (by Deanna [TX]) Aug 17, 2017 1:11 PM
How do I get there? (by AllyM [NJ]) Aug 17, 2017 1:26 PM
How do I get there? (by Robert J [CA]) Aug 17, 2017 7:55 PM
How do I get there? (by Jeffrey [VA]) Aug 17, 2017 9:48 PM
How do I get there? (by S i d [MO]) Aug 18, 2017 5:56 AM
How do I get there? (by kkezir [KS]) Aug 18, 2017 7:34 AM
How do I get there? (by Q [NE]) Aug 18, 2017 8:24 AM
How do I get there? (by Jeffrey [VA]) Aug 18, 2017 11:14 AM
How do I get there? (by Q [NE]) Posted on: Aug 17, 2017 11:58 AM Message:
I have 14 units and I'd lIke to have around 50 more. How do I get there? How are you all doing it?
I listen to all the rental podcasts and strategies, but they make it sound too easy...and I know it aint.
QOut
--70.198.xx.xxx |
How do I get there? (by RockyMtnLL [CO]) Posted on: Aug 17, 2017 12:26 PM Message:
Get your 14 units into tip-top shape and then trade them for a 24-unit place that is mismanaged and losing money. Then, make the 24-unit place a top performer and trade it for 50 units that are in poor condition. Banks will continue to loan to you if you show equity in the buildings you already own - and you have a knack for turning them around. There is ALWAYS an owner who does not want to be in the business anymore, or never belonged in it in the first place. And group ownership deals are a dream - as they often dissolve as soon as people want to go different directions and need cash out of them quickly. Good luck! --69.130.xxx.xxx |
How do I get there? (by cjo'h [CT]) Posted on: Aug 17, 2017 12:51 PM Message:
Just keep doing what you're doing,remember the tortoise and the bunny rabbit? Charlie...... ..... ... --174.199.xx.xxx |
How do I get there? (by Deanna [TX]) Posted on: Aug 17, 2017 1:11 PM Message:
How long did it take you to get from #1 to #5?
How long did it take you to get from #6 to #10?
How long did it take you to get from #11 to #14?
What kind of units do you want-- mfh's or sfh's? Blue-collar workaday neighborhoods, new build, urban, suburbs, small towns, student rentals?
How much debt do you have stomach for, versus how conservative are you in your approach to investments?
Are you at the stage in your life where you have time and energy and money for renovations, or are you needing stuff that's turnkey-ready? --96.46.xxx.xx |
How do I get there? (by AllyM [NJ]) Posted on: Aug 17, 2017 1:26 PM Message:
Buy them cheap in bad condition and fix them up. My dad bought a burnt duplex but only the center stair well was bad. So he fixed it up and decided to buy some more. --73.33.xxx.xxx |
How do I get there? (by Robert J [CA]) Posted on: Aug 17, 2017 7:55 PM Message:
Purchased my first six properties only when I could afford the 20% down payment and fixing up costs. Over time I would add value using sweet equity by remodeling, adding a master suit (Bedroom, Walk-in Closet and bathroom), etc. On each turn-over of tenants I could raise the rent to the new market levels, adding value to them.
Then with a "Higher Net Worth" and my savings I looked for more property. I could qualify easily with my rental income profits and high net worth.
Then I would buy distressed income apartments and do a complete over hall. In A 5 year period I could get all new tenants at market levels, making my property worth more than twice what I paid. Then I could re-finance them and pull out a ton of cash so I had the funds to buy more property. I never used that cash as the down payment, only as the funds needed to remodel and fix up a new purchase.
There are some laws against using borrowed funds as a down payment in a government insured bank loan... --47.156.xx.xx |
How do I get there? (by Jeffrey [VA]) Posted on: Aug 17, 2017 9:48 PM Message:
Q, if you are serious in wanting to get to your goal, come to my next Landlord Boot Camp in November.... I'm very serious... if you are.
It appears you have come to realize, that while very helpful at times, you can't get all the answers needed on a forum or a podcast. The boot camp has helped hundreds of landlords (several who come on this forum in fact) to totally transform their management approach and success, which is the first key to your expanded growth.
You need to immerse yourself into a couple of days of in depth training, direction and exercises along with having the tools to assist you in gaining the right management mindset, skills and game plan that will be valuable and game-changing in getting you to the next level. In fact, that's one of the major goals of the whole boot camp training; is to help landlords increase their income, number of properties and increase your freedom!
I guarantee I can help you reach your goal far faster than you would otherwise. If by the second day, you do not think that the training and take home resources will aide you in reaching your goal faster, or was not worth much more than the time and money spent, you can ask for all your money back. Guarantees do not get much better that! Again, I'm committed and serious..... Are you?
And of course, the invitation and guarantee also extends to you as well who may also have the desire to grow the number of rentals you currently have. Life is short. Let's stop playing at it. Let's do it! LandlordingBootcamp.com
--96.238.xx.xx |
How do I get there? (by S i d [MO]) Posted on: Aug 18, 2017 5:56 AM Message:
I think your question being with how do you fund the deals. All the training in the world gets you no where if you don't have units under control. I'll discuss what I see as the three main strategies I know and then give my view on each.
#1 - Grow organically out of personal cash flow and savings.
#2 - Borrow up to your gills and cross your fingers that an economic slow down, bad health, family issues, etc. don't happen.
#3 - Equity partnerships. NOT borrowing. Get a group together and fund the deals with cash in exchange for shared ownership.
My take on the strategies. # 1 - While typically slower, it's also the least volatile approach. I don't think anyone has gone broke buying real estate for all cash, nor have they had to butt heads with partners. They may lose money on a bad deal now and then, but I've been doing this method for quite some time now, and it gives me what the late Glenn Frey from the Eagles used to call a "Peaceful, Easy Feelin'". Odds of going bankrupt are very low and you get to reap all the rewards of wise decisions you make.
# 2 - Debt-fueled growth is typically faster, and I have heard stories of folks who grow from 2 to 20 to 200 units within 2-3 years by buying apartment complexes. My guess is the stories of sustained, rapid-growth success are few and far between; otherwise, everyone would own 200+ units. Along with speedy growth comes "growing pains" and sometime folks outgrow their ability to manage the day to day operations thinking they'll figure it out as they go along. That can work with a few units, but with 200 it is much more challenging when the phone is ringing constantly and 10 HVAC units need to be repaired TODAY, not over the next month.
# 3 - If you are a deal maker / manager extraordinaire, this may be the ticket between the slower growth rate of your own cash and the warp speed method of borrowing. I'm looking at this strategy now, hoping to leverage my expertise at buying good deals and being willing to share the bacon with others who have cash but who do not have expertise buying and managing. I'm one of the most anti-debt investors on this board, and I've scrutinized this technique very closely. It has tremendous potential to leverage using expertise rather than debt. One of the good things here is when I'm asking individuals to partner with me, they are often very conservative with their own money: they want to see a detailed business plan and will question my every assumption. It's good to hear this kind of feedback.
Once you've got the financing part figured out, Jeffrey's course will help you figure out what you need to know how to handle the growth by scaling out management, maintenance, screening, collecting, etc. All the "nuts and bolts" of land lording. There's a lot to learn going from being a mom 'n pop land lord who handles all the calls to a rental property business owner with a team and delegating responsibility. I'm making that transition now, having 3 contractors to whom I sub out all the work. The next big step is training someone so I can outsource some of the management tasks. Workin' on it. --173.19.xx.xxx |
How do I get there? (by kkezir [KS]) Posted on: Aug 18, 2017 7:34 AM Message:
I guess we have done the slow but sure method and have bought 1-3/yr for the last 12yrs. That puts us at around 23.
We have already bought our one for the year.. and the markets are tightening up and there aren't as many good deals. So this year might be a one and done year for us. --165.201.xxx.xxx |
How do I get there? (by Q [NE]) Posted on: Aug 18, 2017 8:24 AM Message:
Jeffery... Thank you for the input. It may be time for me to come and see how the big boys do it.
I have been doing it the slow and sure way, buying a good deal here and there, building my equity, paying off properties,keeping my borrowing to a minimum, finding great tenants, and managing all aspects, but I'm still doing my corporate gig as well, which just eats up my entire day. It seems my weekends are my rental focus days.
Thanks all for the advice.
QOut
--70.198.xx.xxx |
How do I get there? (by Jeffrey [VA]) Posted on: Aug 18, 2017 11:14 AM Message:
Q, I'm glad you already understand that for you to reach your goal, you can not continue to do all the work yourself in managing your properties. Because as you have discovered, you have little, if any, time left to focus on growing your business. So the first step is to get your rental business at maximum efficiency and equally important, running the business without YOU doing all the work. These first steps toward your goal is where I will be able to give you great assistance.
After that point, you will be able to actually have the time to focus and implement some of the great ideas of making deals you have seen and heard on podcasts and other seminars:) --72.214.xx.x |
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