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Updated over 7 years ago on . Most recent reply

Ready to scale up - looking for input
Hello BP community!
It's been a slow, steady growth for me over the last few years. Right now I have 3 pretty solid rentals and have just eclipsed the $2000/mo mark in passive rental income (before maintenance/vacancy). I've also owned a couple others that I sold last year to refine my holdings and my strategy.
I'm finally to a place where I have a pretty solid income and can easily get a bank loan, and I have some experience and a more refined strategy under my belt as an investor.
I began to look at this more as a business, and less as something I do on the side as I save money; my first thought was, "If I were an entrepreneur in any other capacity, I wouldn't limit myself to whatever money I had in the bank--I'd raise capital, whether private or from a bank, and build a business that way!" This allowed me to start considering more possibilities than just waiting to save up my next down payment. (I've been buying properties between $200-275k, so it takes me a while to come up with a down payment.)
I've finally landed on a strategy/model that I'm excited about, and that should finally allow me to grow quickly from 4 mortgages to 10 (then we'll cross that bridge when we get there!)
I know this is obvious to most of you, but it will start with launching my own consistent direct mail marketing to generate deals. For those that I want to keep, I will use private money to buy directly from distressed sellers (at or below 70% ARV) and then will do a cash out refi at 70% of appraised value.
(This creates two first steps: create my marketing campaigns, and lock in a few short-term private lender options.)
For those properties that I don't want to keep, I intend to rehab them and list them myself. (I am an agent as my day job. I've heard this called whole-tail.)
I'm curious what advice or thoughts you would be willing to share as I ramp up this business. I'm ready to grow my portfolio to a new level, first hitting the $5k/mo mark as quickly as possible, and eventually building a rental business that generates $100k/mo.
On a personal note, because a person's WHY is very important, this will allow my wife and I to support and even fully fund hundreds of families' adoptions over the years. I don't need $100k/mo to live comfortably. But I do WANT to generate that because I can give generously and impact the world around me in powerful ways.
Thanks in advance for your tips, advice, encouragement and cautions!
Most Popular Reply

Oh, I've also been networking pretty aggressively with as many wholesalers as I can find, although so far I've found their offerings to be pretty hit or miss in terms of realistic ARVs and realistic rehab costs. Somehow the ARVs keep ending up a bit high, and the rehab costs seem to be consistently low. Go figure.