How does my investment strategy sound?

[Candace Price]

I'm planning to start a fund for $1mm only to buy residential properties and then using the BRRR method.

I believe I can buy 6-8 houses with that, rehab and then rent it out, with a decent cash flow after mortgage. And then cash out all of it and repeat and build a very strong portfolio.

I believe i can reach 40-50+ properties in a year.

Would love to hear from others on what they would recommend and how many rentals they are managing?

Thanks!!

[Michael Ealy]

Originally posted by @Candace Price:

I'm planning to start a fund for $1mm only to buy residential properties and then using the BRRR method.

I believe I can buy 6-8 houses with that, rehab and then rent it out, with a decent cash flow after mortgage. And then cash out all of it and repeat and build a very strong portfolio.

I believe i can reach 40-50+ properties in a year.

Would love to hear from others on what they would recommend and how many rentals they are managing?

Thanks!!

Candace, I commend you for thinking BIG or at least bigger than most.

Having said that, if you have ZERO experience in buying a house, rehabbing it, finding a tenant and managing it, I would say don't utilize other people's money until you've learned from actual experience. A lot of things can go wrong in the BRRRR process and if I am an investor in the fund, I would prefer investing in someone who has experience vs. a newbie.

I have acquired over 1,000 apartment units and hundreds of single family homes since 1999. I lost it all (luckily without using other people's money) in early 2000s but rose from all that and since putting up my company - Nassau Investments in 2006, we have not lost any of our investors' money (even through 2008 Great Recession).

Start with ONE BRRRR on your own, risking YOUR money first. If you lose it, then do it again until you succeed. If you succeed with one, do it again, and again until you're convinced you've got it. Then and only then do you earn the right to put up a BRRRR Fund.