How to Build a Brand

Question

I am going to be getting into REI in the fall with a house hack. That said, I would like to think ahead and begin to think about how to build a brand. That said, I think my lack of experience makes this hard.

I know I would that I am generally interested in pursuing:

1) acquiring small multifamily properties, eventually moving into smaller apartments

2) I would like them to be in C (maybe lower B) class neighborhoods, due to the fact I lack  substantial cash. I would need to finance these properties with a combination of FHA and Hard money loans (employing a BRRR)

3) I would like to start with 1 property a year, eventually moving up to 2-3

Two questions: Where do I go from here? And how can I begin to think about building an effective deal funnel to match above? Effective for me means automated, given that I work late nights. Is there any resources someone can point me to so I can build these automated tools? I am not super techy, but am willing to learn.

Matthew Irish-Jones · Answer

@Austin Bright RE is a get wealthy very slowly game.  I am not exactly sure what you mean with the above post.  What is the price to rent ratio on the potential purchase?  Is the cash flow positive or negative?  Most investors start with an FHA, its a great tool to get in the game.

Then they save for 5 years to buy another one or two units.  When they get the debt pay down and some forced equity on the 2-3 homes they own, they refinance, pull a bunch of money out and scale up.

That, to me, has always been the best way to scale.  There are tons of investors who use the BRRRR strategy, HML, forced appreciation, renovations, etc... it can all be done but, it takes a ton of hustle, lots of information, and quite a bit of experience to pull those feats off.

NO money down RE investing is extremely rare, and extremely time consuming.  I speak to a lot of people that want to buy, renovate, refinance and pull all of their money back out and do it again.. Don't we all.  It's a lot easier said than done... and it has a lot more risk associated with it.  Most people on BP don't like to talk about the losses they took attempting some of these strategies.

Alina Trigub · Answer

@Austin Bright

Why do you want to build a brand? Are you looking to eventually bring investors into your deals?

Aside from the question above, the brand is established and grows organically via a thought leadership platform which you use to share the knowledge you have accumulated with others, and help others grow. This can be done via podcasting, blogging, videos, on any social media. Pick a platform and social media mean that works best for you and where you think you future investors typically spend the most time, and start building it by adding value to others.

Mitchell Benson · Answer

rule #1  nothing is automated, at first. put in some work first. Your title is "how to build a brand" and your two questions have nothing to do with building a brand. maybe i miss understood.. but really.. what are you actually asking about?

If your new, you just need to let people know what you do. first thing i would do is network. get to know other investors in your area. Why? because its free. You can send $1,000 quick in mail and get no value from it.

Second you need Education. you just need to learn.

I highly recommend checking out propelio academy, its 100% freehttps://www.propelio.com/academy/

then you need to start marketing. Marketing can be a lot of different things, bandit signs, mailers, google ads. ect...

BWT your head is in the right spot, you need to house hack. This was the best thing I ever did...

I would recommend to listen to / read these books

-Millionair real estate investor - gary keller

-Set for life - Scott Trench

Matthew Irish-Jones · Answer

@Austin Bright. Why do you think you need a brand to acquire Rentals?

You just need Capital.  Most investors buy places in LLC’s that no one knows the name of Besides attorneys and the owners.

Jordan Moorhead · Answer

@Austin Bright get started househacking! You don’t really need to do much more than make sure you’re in a good position to buy

Ryan Evans · Answer

Don't worry too much about strategy. There's no reason to think about what deals you'll be doing in two years if you haven't done one yet. If you can't afford a duplex in your area maybe you can buy a house with a bunch of bedrooms and rent those out. Deal with roommates for a year on your FHA and then move onto the next. Figure out your strategy for the next deal once you've got that experience under your belt!

Hard money is for flipping by the way. If you're not doing a major renovation or just using it to bridge two other loans then it's not the right thing for you in this case.

Austin Bright · Answer

How do people build a business out of this then? 1 units every 5 years doesn't seem like you'd be able to quit a job any time soon

Austin Bright · Answer

Thanks!

Austin Bright · Answer

@Matthew Irish-Jones Alright, that's another issue I am trying to solve. I have enough for an FHA loan around the 200-225k price point, which is rare for a duplex in dfw. But for rents in this area, this strategy's not going to make me money.

I'd assume any hard money/private lender wants to see experience, before they'd put there money up. Any other ideas I can throw in more equity on day one?

Thanks

Ronald Rohde · Answer

Yep, brand barely matters to 30,000 unit multifamily operators--barely.

How to Build a Brand

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