How can I grow my REI empire with a full-time job? (Tools, Tips?)

Question

Hi BP Friends! I'm an investor out of Dallas, Texas. Wanted to know how people are managing to grow their real estate businesses (doors, Assets-under-management, net-worth, etc.) while maintaining their full-time jobs? Any tools or tips? Any asset classes or strategies in particular that are really working for people? Thanks in advance for the valuable discussion.

Chris Seveney · Answer

@Gabriel Craft

Over the past five years I was able to go from zero to buying over 500 notes, and 10+ doors while working full time.

For me the keys were:

1. Great systems in place - along with being organized I also spent money on software that allowed me to manage my portfolio. The cost was equivalent to hiring someone full time per year. I found it easier to do the work myself and manage systems than worry about someone leaving and having to train others

2. Team- you need an A+ team. Whether it be attorneys, property managers, realtors… if you have a bad team it will be a huge time suck and a lot of energy fixing others mistakes.

At first I reinvested all my proceeds. There comes a time when you have to go from being small to scaling and it typically includes spending a lot of money to get there- when you feel time is right then do it.

As for leaving your job, I see many who do it too early make sure to have at least 6-12 months salary set aside.

Bryan Mitchell · Answer

I’ve slowly built my 10 unit portfolio over 15+ years while working full time in highly successful management positions where I spent an average of 60 hours a week with surges up to 80 hours a week. During this time I lived in two states and two countries. I was still slowly acquiring properties while living in Europe. Now all of this was in a less competitive time (2006-2019). I’m still actively looking and put a few properties under contract but had to walk away. So it can definitely be done, but you’d really need to build a team, look at/ for properties daily, and be prepared to quickly pounce on them. The key at the moment is not only deal flow but very quickly taking action.

Mike Dymski · Answer

Most of us have busy jobs and families.  Just have to be diligent with time...only spend time on what moves you to your goals...all day, every day.  And, 3rd party management is an option.

Zach Scherschel · Answer

Lots of good answers here and very much the same experience on my end. I've built a 10-unit portfolio in the last 2 years while working a full-time job. What I did/my 2 cents:

1. Find your initial metric(s) that determine whether you're even going to fully analyze and vet a property - whether that's cash flow, GRM, etc.

2. Streamline your analysis system - put together an initial spreadsheet that lets you quickly plug and play, I've furthered the speed of this by adding in some lightweight VBA, a "clear" button, that lets you plug and play to run analysis fast - finding your ways to speed up your own internal process is important.

3. Have your process in place consistently - ie have your financing documents saved at all points in time, be ready to pull the trigger with pre-approvals locked in quickly or a lender that has proven they can quickly turn around a pre-approval and close for you.

4. Seconding many other - build your team, get super close with your agent/management company and make it worth their time, don't ask them to analyze for you, come to them with the analysis only the deal you'd pull the trigger on and they will start to bring you other deals (off-market and others) + once you find a lender or two that are fast and have great customer service, stay in lock step with them - rates are rates, you might get a couple basis points from going through many but if you have one that is quick and responsive, make it worth their time and they'll make with worth yours.

Keep up the good fight and the path to getting out of the 9 - 5!

Bryan Mitchell · Answer

@Eliott Elias, yes, like Michael Gerber in his book E-Myth says, work on your business not in it.

Drew Sygit · Answer

@Gabriel Craft those who are efficient get the most done!

Efficiency is a blend of knowledge, organizational skills, delegating and aggressiveness.

Percy N. · Answer

@Gabriel Craft, I would start by learning more about the asset class.

If you wish to scale via multi-family, I suggest investing as an LP in some deals (syndications or funds) first.

Many of our investors are high-paid W2 employees to focus on their jobs while passively increasing their net worth.

People often underestimate the time and effort to switch to the sponsor side, so make sure you fully understand what is involved before leaving your current profession.

Zachary Inman · Answer

Spend a considerable amount of time building a good relationship with a property manager.

Bryan Mitchell · Answer

@Gabriel Craft, yes, hire right,train, and trust. It’s tough, but necessary!

How can I grow my REI empire with a full-time job? (Tools, Tips?)

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