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I'm not "going as big as I can as fast as I can" like Grant Cardone
Grant - we get the point. You own like 20,000 units and you think we should too. Trust me- it's not that we don't want to. It's that, well, it's 2018 and we're living in the hottest multifamily market in the history of our country.
What has made me successful as a real estate investor is discipline and the deal. I see a deal, I buy the deal, I make money by exiting or holding. I don't chase. I stay disciplined.
Let's face it-there are fewer deals and more people chasing them. Sure, there are tons of guys who want to send you "deals" they've been marketing for 2 years. You know ? The vacant 100 unit with a pro forma of an 10 cap.
Instead of rolling the dice on a 5 cap, what I am doing more of is networking. I call it "setting the table". I'm getting the utensils out so when it's dinner time, I can eat.
Since the beginning of the year I have had 7 verbal commits from investors for future deals and interestingly enough, they like that I'm cautious. They like that I'm conservative.
So don't feel bad if you're not taking down 200 unit deals right now. However, if you're not "going as big as you can as fast as you can" make sure you're at least putting yourself in position to do so.
What are you doing to set the table ?
Comments (4)
@Michael Forbes
I love it! The snowball will build!
If it were me, I would cash out as quickly as possible for two reasons-
1) You never know when you might need that cash for another deal. You always want to have funds available so that you can pull the trigger should a deal become available.
2) You don't know what the market is going to do. If it does "cool down" then you'll likely be able to pull out less money due to values dropping!
I love what you're doing! Keep up the good work!
Brit Foshee, about 7 years ago
Great - Thanks for the feedback Brit!
Michael Forbes, about 7 years ago
You got it @Michael Forbes!
Brit Foshee, about 7 years ago
@Brit Foshee - Good post Brit. As an ambitious newbie, I need to be reminded to stick to my plan and within my goalposts of what a good deal actually looks like. Below is my short term RE plan. Would you mind giving me your thoughts on this? Does it seem like a good plan with the current seller's market?
I'm working on the rehab of my first deal now (SFR). It will be done in about six weeks. This house is 100% paid for along with all the renovations. I should have another one completed with cash (as long as I find a good deal) by January 2019. I plan to cashflow these until the market cools down a bit then pull out the equity for more deals. Does that make sense or should I just pull the equity out right away?
Michael Forbes, about 7 years ago