building my roadmap to 6 figure income and beyond

[Michael DeAngelo]

So i'm at point A (tired of working for others and ready to do anything and everything to take charge of my own destiny) and need to get to point B (6 figure net income). I know I need a map, but right now the map I have is pretty blank. My initial idea to get started and get some experience is to save up and buy SFR's. That is not where I want to end. I'm thinking big. I want to control numerous bigger apartment complexes (100-150 units per complex) in c neighborhoods.

As far as financials go, i'm doing well. I have a conservative budget set that even allowing for extra personal expenses we can save $15k-$20k per year. However, that amount of excess is recent due to my wife becoming full time where she works, so no nest egg built up yet. With that being said, my loose plan for this year is to save what we can and start actively looking fall/winter. By then I should have a nice chunk saved up for down payment and reserves. After successfully managing a few SFR's, then what? Should I gradually scale up?

I know that the types of properties I eventually (sooner hopefully, rather than later) want to get into will require well more net worth than what I can bring to the table. So here is where i'm looking for advise and guidance.

What makes an investor of the caliber I would need, let go of their money? That is, other than the obvious ... to make more.

How much experience would it take to prove to a potential investor that I have what it takes?

Why would an investor settle for a percentage (or other fractional financial arrangement) if they have the money, instead of just doing the deal themselves?

I do plan on getting started going to REI club meetings in the near future. Any and all advice is greatly appreciated.

[Duncan Taylor]

@Michael DeAngelo,

You are asking all the right questions and in my opinion the best way to get there is to scale up as quickly as possible following sound business principles.

But, you do need to start small and actually prove you can buy a income producing property that actually, uh, produces consistent income. Then you have to prove the first time you did it wasn't a fluke.

Lots of people my age talk about the good old days when we could formally assume a note just on our signature. Those days are long gone but, the funding options today are about to explode because of recent changes in SEC regulations.

Long before you need to worry about how to put the large deal together, do some smaller ones. Flip a house or two if the idea moves you. Buy a few SFH as rentals. It won't be easy but if it was we'd see more than 1% of the people who call themselves a real estate investor take the steps necessary to actually invest. Get your processes and procedures in place so you can ramp up when you are ready.

Read the posts on this site. Yes, some are not as good as others but as you read them and any book you can get your hands on about business, real estate and finance you will start to recognize and differentiate those who know from those who pose. Let the library be your friend. Get a Kindle or the Kindle app on your tablet and read like your life depends on it, because your financial life DOES. If you aren't spending 2-3 hours reading each day or night you are cheating yourself.

While you are doing this, network, network, network. I urge you to get and read "Dig Your Well Before You Are Thirsty" by Harvey Mackay. (I know, another book, right?) Then follow his advice. If you do, then when you are ready to ramp up you will have no problem finding the monied partners to take that walk with you.

One last thing, don't try to do things on the cheap. Find a good real estate attorney because you are going to have questions only an attorney can give the right answers to. You need a good CPA because the tax man comes with his hand out, your goal is to get him to leave with as little of your money as possible. Then, when you have a few assets, get a good estate planning attorney. I've found every penny I spend with my professionals comes back dressed up like a dollar. I'm sure 10 years from now, you will agree with me on that.

Good luck and you have lots of people here pulling for you and willing to help, just ask.