Where do I go from here?

Question

Last week, I closed on my very first buy and hold multifamily investment property (out of state). A duplex.

I would like to increase my investment portfolio by at least one multifamily each year for the next 5 years, using the stack method that @Brandon Turner talks about often in webinars and podcasts.

I am looking for advice as to how I can keep up the momentum that I have after acquiring my first deal. I should mention that I use the daily habits tracker as part of my pro membership. So, each day I am building the routine of increasing my knowledge, deal analysis and being active in the forum community by reading and responding to posts, attending webinars. I am saving money so that I can invest.

For those of you in the BP community with investing experience, what are some other things I should and could be doing right now to maximize my waiting time between investments? How long did it take you to acquire your second deal after getting the first one?

Thank you BP community,

Kevin Paulk · Answer

@Nina Granberry Chris and a few other people said it best. A lot of times we under value networking but for those who have gone on to be successful really keep networking in constant motion. The Idea is to be strategic with your networking. Finding out what is needed most will help you stay focused with your goals.So if you're looking for that next deal, find out who are the main wholesalers in town. You may be able to find that through networking with other investors (either on the forms or facebook groups) or from networking with wholesalers. Who are the big buyers in the area and what are they buying and why? This could help with your next location in town. What agent or team is selling the most homes in that town? Find that person and start a relationship; ask to be apart of there mailing list. Who lives in NYC and invest in Kansas City or Belton MO? What is there OOS investing process like? How do they find there deals, are they looking for a partner?

Also keep in mind sometimes we think we have to have the money before we have the deal. When in reality you could have the deal and if the deal is good the money will come. Partnering up is not a bad way to scale. Just make sure you find the right partner.

Anyways Hope this helps?

P.S. I'm in Crown heights as well, so maybe when we get back to somewhat normalcy we can grab a cup of coffee on Franklin.

Josiah Patrick Zebarth · Answer

@Nina Granberry

Hey Nina,

Congrats on the 1st property. From here as others mentioned meet new people and build a system of private investors as mentioned in the book “Raising Private Capital” by Matt Faircloth. Private capital is vital to continue investing as money will be needed for each property. Having those powerful systems of private capital and such is what takes local flippers and makes them powerful investors.

Best,

Josiah

Nina Granberry · Answer

@Brittany Hodges where are you in BK? I live in Crown Heights but originally from Kansas City, MO. I've lived here since 2008, after graduating college in PA. And so, I wanted to invest where I was somewhat familiar with and Belton, MO is not too far from KC. That is where the duplex is. How far along are you in the process of wanting to invest OOS?

Chris Stroup · Answer

I think the best thing to do is network.  Make friends with everyone that you can.  Meet contractors, Realtors, lenders, other investors, property managers, anyone that is relevant in your market.

Find better ways to finance your deals.  Sit down and talk to a local commercial lender.  Maybe you can get a rehab loan and do a BRRRR where you can pull all your money out when you refi.  Then you can immediately start your next deal.

Find someone that offers lines of credit.

Maximize your personal finances so you have more money for real estate investing.

Samuel Vogt · Answer

I’m not an expert by any means, but I would say do what’s logical. It’s hard to give advice without being able to walk through the property with you and point out specific things to do. But if your tenants are taking care of the place and paying, maybe wait until one moves to flip the unit and raise the rent?For what it’s worth, sometimes the hardest thing to do is nothing. That usually happens for me after I get a property stabilized. I go back into saving mode. That can be anywhere from 8- 16 months.

And don’t worry, I’m sure something will come up for you to fix soon lol

Account Closed · Answer

@Nina Granberry First, congrats on buying your first place. There are many people who never get that far!  It sounds like you’re building a solid foundation, so I’d encourage you to think about how you see this playing out. Not just the spreadsheet version of a stack of townhomes, rather what allowed you to own that many doors?

So, in addition to the suggestion above re: networking and connecting with others, I’d start thinking about the non-REI skills that will be needed to augment your success. Since imitation is the highest form of flattery, I’d start with finding people in other industries that you admire.  Do you know their stories? What habits they have that enable them to succeed?

Nina Granberry · Answer

@Kevin Paulk thank you for the great advice. Some of the things that you mention I have done so far and will keep on building and expanding my network. I have to work on getting to know busy wholesalers in my market, though. I haven't connected with many yet and that seems like a good place for me to start working on my network.

And yes to grabbing a Franklin coffee. I would like to pick your brain on your investing experience so far.

Chris Stroup · Answer

Commercial lenders will lend on rehab projects for single-family homes.  You will probably have to talk to a few banks and see who is offering them.

BRRRR's are great.  You will have a rental property with capex items taken care of and if you find the right deals, you get to recycle your money.

Just talk to everyone you meet about real estate.  Tell them what you are doing and what you are doing next.  Go to real estate investor meet-ups and make friends with everyone.  Meet the local wholesalers, sometimes you can find really good deals that way.  I am doing a flip right now that I got from a wholesaler.

Find a local Realtor that specializes in working with investors.  They will be able to introduce you to everyone you need to know.

Nina Granberry · Answer

Thank you for the advice - it is super helpful.

+ When you say network with them, should I be doing more than connecting with folks here on BP? I wonder how I bring up the idea of building a team as a new investor...and how seriously they will take me when realistically, I will not be buying another property for some months.

+ I agree that BRRRRing is a better way to finance deals. A lot of my own money is tied into this first property...so I am looking for ways to maximize my personal finances besides being more frugal, building my cash reverses and savings. I was thinking that the next deal I want to do is a BRRRR so that I can recoup my funds and recycle the money into another deal faster. That is what I am learning and educating myself on presently.

+ commercial lenders - do these types of loans only apply to properties that have more than 4 units?

Brittany H. · Answer

Hi Nina, I'm in BK too and looking to invest OOS as well. Curious..where did you end up buying?

Where do I go from here?

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