How do you scale your business so quick?

[Stephen Collins]

How do the pros acquire so many properties in such a short amount of time? I listen to the BP podcasts and the guests are always talking about growing 5-10+ units a year. I bought my first house in 2013, and am looking for an investment property in the ATL area. I am worried though that after I finance this second property I will have such a high debt/income ratio that I’ll be stuck paying cash for any additional units, and that I may no longer have cash on hand due to any rehabs. How do you guys grow so quickly?

Thank you, all advice is appreciated!

-Stephen C.

[Ben Leybovich]

@Brandon Hicks - thanks for the shout-out! I remember us talking on the phone five or six years ago. Seems like forever. I was in Ohio - you were in Indiana. I am in Arizona now - you're still in Indiana...we got to work on that!

For anyone interested, it's actually the Phoenix Syndication Workshop. Really is going to be a cool thing. The link is in my signature. This is the first one, and we are donating 20% of the gross to charity. Pretty excited about that.

My partner in crime, @Sam Grooms , wanted to donate more, but I shut him down...I got kids to put through college :)

[Jerry W.]

Bah @Ben Leybovich you just want to buy another Tesla.  My sister-in-law was impressed when she visited Wyoming.  We rely almost exclusively here on mineral extraction for income, but virtually everyone had electric cars.  I waited a long time to tell her that no one had electric cars.  those plug ins on the front of all of our cars were for engine heaters so  our cars would start in 30 degree below zero weather.

[Jeremy Kuchenbecker]

Originally posted by @Bo S.:

Originally posted by @Brandon Hicks:

@Jeremy Kuchenbecker

Depends on the market I guess. Having a 100 SFR's in a good market for a 30 year period will make you far wealthier than 20. And long term wealth is a big reason why we hold assets.

Would love to hear current status and  how far you’ve progressed? And how as well. 

I'm up to 8 units and put $50k into a syndication run by Joe Fairless out in Fort Worth, TX. I'm thinking of stashing away money in 2019 and seeing if anything goes on sale heading into 2020, we'll see. I'm 29 and really just focusing on equity growth for the next 5/6 years. I did find a lender in Florida that was able to do HELOC's on rental properties as well that I opened up with some equity access. Great program.

Its funny to look at the original post saying 100 sfr in a good market will make you wealthier than 20. As if that is a question. Obviously 100 sfr in a cheaper market will have a higher NAV than 20 units in 99% of the markets in the US. If you look at a reasonable scenario of 20 units in the mid-west to 10 in Orlando with the same NAV, over the long term I would take 10 in a strong but more expensive market like Orlando every single day of the week.  

 Jeremy

[Corbin Jones]

Hi Brandon, what is buying on land contract?

Originally posted by @Brandon Hicks:

I've went from 4 units (3 properties) to 28 units (14 properties) over the past 3 years using seller financing. I typically buy on land contract with very little money down and 5 year balloons. I have a great working relationship with a small local bank that loans for their own note portfolio. I refinanced my first land contract last year, which was a 3 unit. My banker is presenting the refi of 5 duplexes this coming week. The new loan will be a commercial blanket loan, 20 year amortization, 5/1 arm starting at 4.750% and the LTV will be at 80-85% LTV.

I'll still have a couple of single family houses, 2 duplexes, and 5 unit complex on contract needing refi in the next 4 years. I see no issues getting it done. I make $14/hr at my job....

[Brandon Hicks]

@Corbin Jones

It’s a form of seller financing sometimes referred to as contract for deed. It’s the real estate equivalent to “buy here, pay here” in that you make your monthly payments to the seller. It’s not legal in every state so be sure to verify your state’s stance on it before attempting it. It’s a great way to buy since you potentially don’t have to meet the same criteria as you would for a bank loan.