Seeking guidance to grow real estate portfolio - scaling flip and buy and hold

[Raj Ga]

I currently own 3 properties which include duplex and single family homes and they are under long term lease. Though I just finished my first single family home flip. I like the idea of the flip generates the cash flow that helps in reinvesting for downpayment for long term hold. For long term, I am interested in owning more long term rental properties though which requires capital to start such as down payment. I am wondering if someone have employed such strategy, doing two things in parallel - flip properties to generate cash and use that to buy long term rental or use that to do BRRR hold.

What I noticed that flip generally takes 3-6 months depending on the property, how to scale it up? How to do multiple flips at the same time? How to build multiple GC team to do them in parallel? How to build team to identity right flip candidate properties?

 

[Doug Smith]

When we started our real estate investment arm (separate from our lending arm) about 15 years ago, we were flipping with all cash. Instead of doing one or two at a time, we ended up using some smart leverage to bump that to 5-6 at a time.  Once funds began offering loans to flippers, we jumped on it for our lending arm. The key is to not over-leverage. Instead of borrowing 85%-90%, keep the borrowing down to a minimum...we usually didn't go over 50%-60%...as the interest will eat up your profits. That being said, the extra volume allowed us to start mini "bulk buying". We were able to buy identical appliances, flooring, tile, paint, cabinets, etc to bring costs down further. The key is to not get too extended.