Single Family Portfolio Building

[Ben McMahon]

I have a small Portfolio of SFH. About a dozen. They are good because I own a management company that can handle them, and the income is respectable. It took awhile to build, and I would love to hear some opinions on building it faster. Here are my obstacles

1) Capital - Always an issue. - UP until now, I have used Private investors to fund my deals with cash, I refinance, and pay them back with interest.  The process is painstakingly difficult with the banks, and truly hate dealing with them.  Also, the margins are tight paying a 10% interest to my private investors.

2) Good Properties - I find it hard to invest in areas outside my immediate geography.  Since paying management fees eat up most of the income.

3) Paying myself - I have plugged people into my system so that it mostly runs itself.  I have my construction guy, a real estate agent, a property manager, and accountant.  So I am primed for bigger things.  It seems like I always have the money to pay my people, just not myself.  

Thanks BP

[Tyler Wehrung]

Ben,

It sounds like you are well positioned with a ton of potential and are just having capital issues.  Have you considered portfolio loans?  I think you could get a much lower interest rate on a portfolio loan which would decrease your 10% cost of capital, which sounds pretty high.  Below are some pretty popular portfolio lenders that you might want to check out.

It sounds like you might have to play the balance of growing and paying yourself right away.  If you can manage, it could pay dividends to reinvest into growth rather than pulling money out for yourself. 

Just some thoughts that I hope help you out.  Good Luck!

1. B2R Finance

2. Colony American Finance

3. Dwell Finance

4. First Key Lending

5. Lima One Capital