General Plan for LLC and acquisition of rentals

[Michael Sontheimer]

Hi all. I am new to Real Estate but geared up to move forward as fast as possible. I have purchased 4 properties in the past 2 years and plan to purchase 10 more within the next 2-3 years.

I have listened and read a ton but have not heard anyone really break down in simple terms how to make large jumps in property acquisition. I hear people say in the first few years they had 20 rentals. Others say they have 200 units or 50 single family etc.

My questions is more on the legal structure side of things. I was told that after 10 mortgages, banks will not give you another one (well not as simply as the first 10). I have also heard other landmark numbers like these when it is suggested you get an LLC, an additional LLC, a holding company, a portfolio loan and the list goes on and on.

Can someone give me a simple/common timeline for the first lets say 100 single family properties? (Not sure that I will get to this number but I want the layout of the plan).

For example. Buy houses as an individual, transfer them to LLC. Continue doing this forever.

Or Buy them through the LLC and develop credit and relationship with commercial lender and do this forever.

Combination of those?  Help!

[Bart H.]

I would say find the first great deal, and then move to the second, then the 3rd....

By the time you get past the first 4-5, you will find some constraints on growth, at some point as you get close to 10, you can look to commercial loans, or owner financing. Or perhaps you may find that you want to sell all of your SFH, and take the money and reinvest it into multi family.