All Forum Posts by: Ronan Donnelly

@Account Closed, some options are:

1) Partner with people who have cash by bringing or managing the deal

2) Hard money

3) Bring on private passive investors

4) Borrow from 401k

Agree with @John Warren, forcing equity via value-add and a cash out refi or HELOC is one of the best ways forward and validation that you are getting good at identifying, acquiring and improving assets. That skill, once acquired is highly scalable. Good luck!

Hi @Colby Wise, congrats on having a much in demand skill as a data scientist and for seeing the value of growing your wealth via the power of multifamily.

The due diligence process is perhaps too long to go into on this thread but likely a good idea for an article. I have a couple of thoughts on how you might move forward.

1) Partner with other local syndicators so that you can diversify your risk and get some accelerated hands on learning. This will also likely make it more attractive for investors if you plan to bring them on.

2) Invest via a syndicate so that you can get access to real expertise and experience, for a fee, in return for truly passive income. You will learn something via this approach and investing in multiple syndicates will allow you to further diversify your risk.

The options presented above don’t have to be either or and can be pursued alongside looking for your own deal. Just my $0.02. Good luck!

Hi Michael, I started with single family homes and subsequently moved over to a multifamily value-add strategy given the economies of scale, Cashflow and the ability to create equity  

Can you find someone to partner with to do a deal together even if you don’t have enough to do it on your own? It’s a very good indicator of success that you have been able to delay gratitude and save $1k per month. Good luck!

@Jacob Humiston, once you build up enough capital you will be able to get investment mortgages which require ~25% down but the upside would be that you don’t need to move every year.

You might also benefit from mapping out your respective goals with your girlfriend, look for the common ground and get buy in to a plan that works for both of you going forward. Good luck!

@Saman Jafari, buying close to home can provide more confidence and insight into your investment and you can gain an edge by having local market knowledge. Buying out of state forces you to learn all of the skills that you will need to scale, no matter where you are based e.g. delegation, hiring and managing a team, etc.

In terms of selecting a market the most critical element is whether or not it cashflow. After that look for population, jobs and wage growth, diverse employment and a balance between supply and demand. Good luck!

Hi Betty, buying somewhere that you can force appreciation by improving the asset is a safer strategy than buying and hoping for appreciation. Not to say that you should ignore the possibility of an appreciating area but just don’t count on it. Good luck! 

@Hayden Smith, congrats on your two deals thus far. In terms of deciding what to do next why not take some time to wrote what your goals are (time, money, contribution, skills, etc) and then reverse engineer from there. E.g. if your goal is to own 1,000 doors then you may want to consider multifamily, if you goal is to be entirely passive then you might consider being a LP in a syndicate, if your goal is to self manage then you will likely buy close to home, etc.

Focus on one strategy, go deep, build relationships and dominate that space. Good luck!

@Yankel Raskin, good on you for taking the first steps towards being a real estate investor. There are a multitude of ways to make money via real estate to pick a strategy that works for you and go deep. The very best way to learn and grow is to be open to making mistakes. The advice that you have been getting from this thread has highlighted some of the risks, some of the upside and some of the work that you need to do in order to get better. Nobody is born great at anything, it takes repetition and practice so go ahead and get started, you won’t regret it, even if you make costly mistakes. Good luck!