0 to 30 units?

Question

Hello

Current College student in Rhode Island College, plan on acquiring 8 unit in 2016 with my business partner. We plan on buying separately using our first time home buyers benefits as well as using FHA or FHA 203k on a value add that needs some light TLC no sink holes! or major rehabs.  Currently RI has this new program for college students, where they give new graduates $7k  down payment through their first home www.gradgrant.org. So if all goes well we will acquire cash flowing properties with little to no money considering it cashflows as all factors are factored.

Our goal is to scale from our first 8 unit to 30 by 2018!, crazy goal we have been saving and have good savings dusk far. How does one scale from 0 to 8 and 30 units+ and future goal of syndicating deals too.  I have been reading a lot of success stories, and I wonder how they scale so fast, and what skills they have that I should learn.

Kevin Koffman · Answer

Ok, so it's 2018, how's it going? Any progress? Curious.

Abou C. · Answer

Ingrid J. Hello great point Ingrid, he is my best friend and stand up guy,  we also founded a watch company called Rhody,LLC during community college as well. But I understand problems happen and etc, so yes we will get a contract when we file for LLC for our future 8 unit in 2016.  He and I will own 50% each, as well as clear roles and responsibility as well as "what Ifs" if something happens to anyone of us.  My personally goal is to scale this new company where I can hire 10 people max for admin and take this company public or a multimillionaire dollar if not billion dollar company. Humble beginnings, we with clear focus, passion, hard work, smart work and great mentors and partners anything is possible.

Bill Gulley · Answer

Learn to walk and talk, the last batch I bought, I was driving down a street and noticed an older lady walking out of an empty house with a bucket and mop. I pulled into the driveway and began talking to her. Just said "why don't you retire?" bought them all with seller financing later taking their headaches away and giving them freedom! Landlords are use to getting checks in the mail, they weren't aware of the taxes they avoided until I explained seller financing! I get the properties they get a new life! Good luck :)

Bill Gulley · Answer

No doubt you're smart guys, might begin by picking off tired landlords with seller financing taking all their properties off their hands. The key to the door of real estate is financing!

To build anything you build from the ground up, begin digging the footings in your education and knowledge, pay attention to the framework, surround yourself with those smarter than you in their fields of expertise. Be flexible, a speed boat turns faster than a battleship, design your fleet with speed boats. Build financial relationships, never rely on one source of funds. You will be tempted, stay on course dealing ethically and legally the rewards are much greater. Good luck! :)

Manolo D. · Answer

@Abou C. I am not sure if 50/50 on the llc is best, however, on a corp, 51% matters on everything, one should be a controlling share, the beauty of llc is, no matter how you split the shares, you still have control over the profit. Even if you own 90% of the share, but if your papers say you will maintain 100k on the llc and the remaining is split 50/50 by x and y, it is not a question. Even if he is your brother, best friend, mother, parent, or worst enemy, issues arise in the future, it is not is not a matter of IF it will happen, it is WHEN it will happen. That is why my JVs before have an expiry of 3-5 years, exiting and splitting is the hard part, drafting that part is very sensitive and it will test your relationship for sure. It is like a divorce, who gets what and who (acquired connections) is very difficult to determine when it is time to close that llc.

Ingrid J. · Answer

@Abou C. That is great to hear. It sounds like you have a good foundation for a partnership. Let us all know how it goes.

Abou C. · Answer

@Vincent Crane I agree, that is why I must acquire the 8 unit in 2016 and more before asking anyone for $.  I want to understand as much as I personally can and find undervalued deals to accomplish this goal.  I believe there is a lot of money out there and a lot to be made, so have to go get it. @Bill Gulley Ha great story, I am sure there is a lot of tired or investors who no longer want to deal with their properties and I want to seek them out. The next 5 years for me is going to be crazy to say the lest, so far focus on my first 8 unit in 2016 and using that as my foundation moving forward. Refinance then possible and roll that into another deal. Also spoke to 10 friends of mine who are financially in a good portion and my 2017/18 goal is when I graduate is to raise $100k+ from 5-10 people max to grab a undervalued value add 10-12 unit on the northeast.

Vincent Crane · Answer

In order to do that you'll have to build a network and use other peoples money to fund the deals. To get that funding, you'll need to prove 1-2 deals on your own and then show you can identify undervalued deals and split them 50/50 or 60/40

0 to 30 units?

Most Popular Reply