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Updated over 5 years ago,
Moving to the next level
My wife has had a very successful flip business for 10 years (2-4 per year) with avg gross profit of of $60-120k ea. Done well. It is not hgtv but sweat equity. There ain’t no money left to do that without insider / off market deals. Plus every HGTV show makes it seem easy, ..bs. So buy side seems like it is about getting into auctions and wholesalers. Fine to pay a fee for the right deal. Haven’t seen much in Mpls mkt. plus with auctions, We don’t want eviction crap. Haven’t seen those deals often. So happy to pay someone else do that hunt. We are typically cash as is close in 7 days up to $1.5m and then either refi for all cash out or sell to people lining up at the door for th product.
Seems all great, but not. No long term equity gain and deal flow is running thin .
We are looking to scale to within 5 yrs, $1,5-$2m equity, $6-8m value, and $75k/yr cash flow great credit, incredible k1 real estate investments but figuring out next stage of life
However, we are looking to take our vision, establish additional $3m personal capital, and $20m in lending value.
So why should I do multi commercial loans vs. repeat rehab sfh and rent?