My Strategy And How To Form Yours

So we all read about it, have a niche and focus on that niche and solely that niche in order to have success. I agree and disagree with that time-tested saying. I agree because you have to have an overall goal, what is your finish line, or at least your finish line before you start a new marathon. This end goal will allow you to overall know where you are going and the fun part is figuring out how to get there. For instance in the Millionaire Real Estate Investor by Gary Keller, he lays out a basic strategy of buying a property at a 20% discount with a 20% down payment and over time you will amass wealth and be financially free with the cash flow the properties give you each month. But how do you get to that point?

This is where I disagree partially, for me time is my biggest enemy, there never seems to be enough or things take to slow for my A.D.D. mind to be satisfied. Knowing that I eventually want to own a portfolio comprised of both single family as well as large multifamily properties I began my research on this niche and I learned it and I continue to learn it. But soon I become discouraged with the down payment portion, In California, it would take me a lifetime in order to save up for a property that would cash flow very poorly. So I began to look at the Midwest where the purchase to rent ratio (cap rate) is much better and doable for your average Joe or Jane. But still having anywhere from 15-20K for a down payment takes a while to build up let alone saving up enough to acquire 50 units in two years (my current goal). So how could I get these down payments?

Well, I began to look at flipping, this is why I disagree with the focus on one niche. My current plan is to flip single-family homes and use the income generated from the sale in order to purchase my buy and hold properties. So I began researching both at the same time. Rotating weekly which subject I learned in order to fully grasp the material and not become overwhelmed and get analysis paralysis. During my research of flipping, I discovered the term OPM (other peoples money). What better way than to use someone else's money and not only make them money but also make you money. I am talking about a 50/50 partnership. So I began to post on BP and show some of my potential deals to others to attempt to attract a money partner, and behold it worked!

I am happy to say I have met two wonderful partners that essential want what I want, a 50/50 partnership where the only work they have to do is review my documents on the deal and give the green light so they can continue to be with their families instead of on a job site.

I recommend this strategy or strategies to anyone new as I feel this will be the quickest way to becoming financially free. But remember you still need to save and have more income than expenses in order for this to work.

What your strategy? How is it working for you?