Start small, or START BIG?

[Michael Skvorak]

Hello BP! 

I have a question for you all. I am conflicted at the moment as I am starting out in the investing world. I have heard pros and cons from both sides of the fence on the topic of: starting small and working your way up / snowballing to bigger deals OR creatively starting in bigger deals from the get-go because there can be less risk (still risk, just less in my opinion). I am an avid fan of Grant Cardone, and one of his rules is to go no smaller than 16 units (what do you think about this rule?). I understand that with that there is less risk for vacancy loss and the property has potential to produce more income creating more wiggle room for unexpected issues. On the flip-side, I know that you need more capital when dealing with larger properties and that is where the creativity would come in. BUT I have also heard many success stories with people in SFH and it can require less capital. You can flip to get quick cash to then use on larger deals. Dealing with SFH can be dicey because there is more emotion involved, where as dealing with commercial, the properties are assessed on how much income they produce. I know I am rambling, but could you share with me your opinion on the subject? How did you get started? What did you do right, what did you do wrong? What do you wish you would have done when you were in your early 20's?

Thank you for reading my forum post and thank you for your response!