How to scale at BRRRR

[Yixiong Pan]

I have 5+ buy and hold properties,  i have limited cash right now for another down payment, my debt to income ration hits almost the limit. How should i scale from here ? Also i have connections with people who are eager to start investing, what's my best strategy to partner with them, since i have experinece, they have cash to put in. thanks !  

[Stuart Udis]

@Yixiong Pan I don’t believe you’re in position to raise capital or be the operator partner. By your own admission you don’t have the balance sheet to buy real estate or borrow and haven’t taken any projects full cycle. What happens when a deal goes south? What happens if contingencies come up? How are you going to navigate deals with adversity? Most in your shoes believe the time to raise capital is when their own money runs out. The responsible time to begin raising capital is once you’ve taken projects through full life cycles (hopefully some with success). By then you have experience and presumably a balance sheet, two things anyone raising capital should possess. 

Perhaps the better place to start is by examining your existing portfolio. Are there ways to add value through renovations, additions, improved management? If no, can you sell and use the recapitalization to buy more property?