How to grow investment portfolio

Question

Hi there,

I am a single mom and have acquired 5 properties now over the past few years.

I was able to get a refi on my first one 6 months ago to get the down payment for the next 4 along with a 401k loan.

They are all cash flowing and two are under an LLC I created but I was wondering how I can buy more? I am now out of cash.

They produce about $3k a month between them all but I’d like to buy the next one ASAP rather than having to wait until I have saved up the downpayment.

Anyone have any ideas please?

Thank you

Will Fraser · Answer

Nice work, @Jemma Jacques!  Once you hit this initial wall there are some ways you can climb above it.

You can save up your cashflow and contribute personal savings until you have the purchase money for the next purchase, and then rinse and repeat.  While this isn't the "sexiest path" forward, you are young living proof that it grows more quickly than you'd think!  You have 5 assets that produce $3,000 in monthly cashflow!  That's amazing!  Following this path you may add $3k in additional cashflow in the next 5-10 years (assuming the market cooperates)

Otherwise you can raise funds or partner with others.  The difference here is subtle, but huge.

• If you raise money for your down-payment then you functionally have a 2nd mortgage to pay back to a private party.  After that is satisfied you own the property free and clear and outright.  So, you would expect cashflow to be tighter upfront in this scenario than it will be later on.  
• If you partner with others you will share the cashflow and the equity (or whatever you all decide) on a permanent basis, so you'll want to make sure you and the partner(s) are aligned.

Keep at it, Jemma!

Jemma Jacques · Answer

Thank you Will ☺️