What would you do if you're just starting out?

[Mike Kehoe]

My five-year goal is to have a portfolio of mid to large multiunit properties. What should I do to prepare myself now to get into these types of deals in the future? I've found a mentor that does single family and small multi-unit fix and flips and am in the middle of my first deals with him. In return for his guidance, other than providing cash, I'm helping him grow his/our business. Is this the right starting point?

What would you do?

[Kevin Dean]

Hey @Mike Kehoe I think that is a great starting point.

I would say be cautious, when you have cash on hand and you mix it with the excitement that all investors get when starting out, it's easy to get into bad deals and bad partnerships. There are always people who will look to take advantage of your inexperience and your money.

It sounds like you are already headed in the right direction. You may want to think about diversifying both your money and your education across a few different deals and with a few different sponsors. In my experience it has been very beneficial to see how a number of people operate. 

Spread your time out by adding value to two or three different individuals.
Spread your money out by partnering or investing in two or three different deals with two or three different deal sponsors.

This is definitely a longer term process, but with the 5 year mindset that you mentioned you have, this is a realistic strategy to equip yourself in the right way in order to move yourself to where you want to be five years from now.