Banker · Memphis, TN · Member since 2017 · 18 posts · 4 votes
So after analyzing deals and looking at profit made and how much of a down payment I could afford after x amount of years in my first property, I am just not seeing how, “30 doors in 30 months” or 100 doors by 30” is even realistic? How are people doing this if they truly are starting with less than 50k? In four years with a down payment I can afford I will be able to afford a 300,000k home and that will put me at 26 then 30 and so on. I understand this isn’t a get rich quick thing but growth here is possible but in order to be able to get out of the ‘9-5’ it would take me a considerable amount of time and i will have already been retired anyways? The growth with my plan just isn’t as fast as it seems it could be. What am I missing?
Thanks in advance!
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
8y
BRRRR-ing is how you can get there the quickest. LOCs can help fund the BRRRR process as well. After you build up a little track record, you can start using investors for the capital. I talk about these quite a bit in my podcast (link in signature). I started at 25 without much cash. Retired at 32 this year. Currently at 156 total units, my ownership equates to 101.
I've only done of these (and it was this year) but 1031 exchanges can help scale up at an accelerated rate as well.
Rental Property Investor · Los Angeles, CA · Member since 2016 · 130 posts · 69 votes
8y
Hey Jordon,
It definitely takes time to begin your real estate portfolio, but as you begin doing more and more projects you will start to feel more comfortable in certain areas that you've done your previous deals. There are also different approaches to RE investing; flip, buy & hold, BRRRR, etc.
Flipping correctly is a great way to multiply your cash, then I would suggest purchasing a passive income property once you have enough cash for one + another flip.
It all depends on how much time you put into your business and how smart you work to earn your properties.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
What do you mean about the 300k at 26? Are you buying a primary? Maybe I’m just missing something.
To answer your overall question 30 doors in 30 months vs 100 doors by 30 is probably easier to hit the latter depending on what age you start at. If you start at say 20 that’s 10 years to get 100 doors or 10 a year, which is doable.
My own goals and projections leave me at around probably 30-40 doors at thirty and hopefully 100 plus by around 35, which in the big scheme of things isn’t really a big deal.
It’s definitely doable but you have to be consistent, increase your day job income and plow your profits back into your business and do that for years. Most people won’t do all these things.
There’s a guy on BP named Joel I️ think, who has like 40-50 doors and he’s 24. It’s definitely doable
Banker · Memphis, TN · Member since 2017 · 18 posts · 4 votes
8y
Thanks for the responses!
And 300k at 26 with a 30k down payment and that 30k coming from a home (potential) I will purchase at 22 four year turn around with 30k in profit as far as loan being paid down and appreciation so with that math or my “plan” it will take me well over 10 years at that rate.
Banker · Memphis, TN · Member since 2017 · 18 posts · 4 votes
8y
I also meant to add,
I guess it’s just really a matter of being creative and doing the math to make sure it all adds up.
For those with multiple properties though, does the fear of vacancy not keep you up at night? Assuming you have barely enough income in order to cover all mortgages for the month.
Real Estate Agent · Owatonna, MN · Member since 2017 · 36 posts · 37 votes
8y
Exponential growth is achieved by people with little money (me and you) by learning how to rehab properties with our own sweat equity. Buy a fixer-upper, rehab it, and then refinance it on a 25 year note. Then pull a heloc off that property. Rinse and repeat until we don't have to be the ones roofing a home in January (I'm from MN, that sucks nuts). We got this man! And thank you for your service
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
Jordon Mayo location is an important thing too .
30 doors in a lower cost market like parts of the Midwest isn't the same as 30 in a market like L.A or NYC .
Many people that are scaling up with rentals seem to be using BRRRR strategy to buy rehab rent and then refinance and repeat.
This way one is able to "Recycle" their initial investment.
Some people also take on partners and leverage other people's money in order to grow .
Some people use seller financing and are able to buy for much less than a 20% downpayment.
I saw some post recently where someone managed to buy with like 6 percent down the way they worked the deal
Also there are some that make a nice living in real estate and don't own any rentals . If they are wholesalers , flippers , developers, etc .
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
Using the BRRRR method, which involves getting built-in equity that allows you to refinance most of your down payment or flipping some and holding some, using the profit from the flips to buy more holds. But also, you can just take a chill pill because you don't have to get 100 doors by the time your 30. Getting 30 doors by the time you're 50 will be plenty to become wealthy. So BRRRR and/or flip and hold together can get you there faster, but you don't have to get there that fast.
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
8y
BRRRR-ing is how you can get there the quickest. LOCs can help fund the BRRRR process as well. After you build up a little track record, you can start using investors for the capital. I talk about these quite a bit in my podcast (link in signature). I started at 25 without much cash. Retired at 32 this year. Currently at 156 total units, my ownership equates to 101.
I've only done of these (and it was this year) but 1031 exchanges can help scale up at an accelerated rate as well.
Banker · Memphis, TN · Member since 2017 · 18 posts · 4 votes
8y
Sebastian, thank you for the support, it means a lot!
Thank you all for the advice! I definitely need to learn more about refinancing and BRRRR as a whole.
Investor · Middle River, MD · Member since 2017 · 191 posts · 127 votes
8y
There are resources that show up along the way. Banks will offer you sizable unsecured lines of credit once you have an LLC (or any company) profitable for more than two years, for instance.
Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes
8y
Find the Deal and Find the Partnerships @Jordon Mayo . Like you I have little money to invest. I recently posted a blog titled ‘Purchasing Our First Apartment Complex’. I helped find & structure that deal and from that my partners and I raised the monies required to close. My % works out to be 10% of the deal, on a 42 unit complex. That’s 4.2 units with essentially no out of pocket money as all due diligence monies/fees were repaid back to me at closing.
Banker · Memphis, TN · Member since 2017 · 18 posts · 4 votes
8y
Jay Helms I am interested in replicating that. Would you mind sending me a colleague request so I can message you? I can’t seem to send the request on mobile.
Thanks!!
Investor · River City, Manitoba · Member since 2017 · 162 posts · 193 votes
8y
If I was young and could do it all over again this is what I would do:
1) Live in fix & flip to build up equity
2) Buy first property to live in, house hack it, while continuing flips to build more equity
3) Once enough equity is built up for 40% down on a house... move out of "house hack" property and have that as your first full rental, put 20% (you may need the other 20% for repairs and expenses) down on a property, with a standard mortgage, BURRR this property while living in it
4) once you have built up the value in the BURRR property, remortgage and get your initial equity out and look for the next BURRR property.... (rinse and repeat) until you build up a decent cash flow.