How do you move to the next deal?

Question

Hi Everyone. I've been lingering on BP for a while, but haven't really posted anything until now. For example's sake, let's say I'd like to build a portfolio of rentals that would provide a total of $2.5K/mo. I find a deal that cash flows at $250/mo for my first deal. To get to 2.5K/mo, I'd need 9 more similar deals. This seems like a big challenge that would take decades and would like to know what others have done. If I use a big chunk of capital for the first deal, it would take some time to build more capital to get my second deal. And again for a third deal, etc. Is that just how it works? I'm not expecting overnight success, but am curious how others have gone from 1 to 2 to more in seemingly just a few years.

Thanks in advance.

Brian Lipszyc · Answer

@Samuel Vogt Do you mean BRRRR and Rent or BRRRR and flip?

Samuel Vogt · Answer

Finding deals with built in equity that you are able to BRRRR is another way to move at a faster pace.

Kevin Dean · Answer

Hey @Brian Lipszyc, I have only done two deals, but I can say that the progression from the first deal to the second deal was a huge step up for me. Doing the first deal gave me the confidence to go out and do a much larger second deal.

Also, don't underestimate the power of compound interest! As you add more cash flowing rentals to your portfolio, your savings rate will increase at an increasing rate. Enabling you to buy more real estate at a faster pace.

Additionally, if at the same time you are increasing your income from you full time job, your savings will further increase. Patience and consistency are my two main focuses right now. I believe that with that mindset, my portfolio will increase at an increasing rate. I believe that has been true for many other investors with more experience and time in the market than I have.

Suzie Remilien · Answer

@Brian Lipszyc Most people are able to buy more quickly by being super savers, relying on HELOCs and partnerships.  To find out how others have done this, consider following the creative real estate financing or completed deal diaries forums on BP.