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Updated 9 months ago on . Most recent reply
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Two Way to “Scale”. Which did (do or will) You Choose?
I think there are two ways to “scale” your real estate business or investments. (Maybe there’s more than two, if you know any others please let us know).
1- do more deals (investments, loans, etc.)
2- do bigger deals (investment, loans, etc.)
I chose bigger exclusively. I went from $25,000 loans to $100,000 loans to $250,000 loans to an average loan size of $2,000,000. On real property purchases I went from $50,000 to $500,000 to $1 million +.
Which way did you (or which way do you ) scale your real estate activities. Or did you chose to scale at all? Staying exactly as you are and doing the same thing may be the best strategy for many.
- Don Konipol
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Quote from @Don Konipol:
I think there are two ways to “scale” your real estate business or investments. (Maybe there’s more than two, if you know any others please let us know).
1- do more deals (investments, loans, etc.)
2- do bigger deals (investment, loans, etc.)
I chose bigger exclusively. I went from $25,000 loans to $100,000 loans to $250,000 loans to an average loan size of $2,000,000. On real property purchases I went from $50,000 to $500,000 to $1 million +.
Which way did you (or which way do you ) scale your real estate activities. Or did you chose to scale at all? Staying exactly as you are and doing the same thing may be the best strategy for many.
What if you did both :) . I will stick with my note investing as that is what I primarily do now over traditional real estate (which I also still do). When I got involved in notes I started with doing more deals - i was buying lower priced assets and choosing quantity over quality which was "risky" but I did very well and learned a ton. When I started to grow my box buy continued to change and loan sizes got bigger and bigger.
To give an idea I would say out of my first 250 deals, maybe 5 had a balance over $50k, of my last 250, maybe 5 had a balance less than 50k.
- Chris Seveney
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