All Forum Posts by: Ahmad H.

@David Grabiner 120 units in 10 years is certainly possible. 

My earlier post was mostly to show that it's unlikely to get to the OP's goal by purchasing 13% COC properties. 20% COC would get him there and if he is willing to do BRRR he can even surpass his goal, but it will certainly need a lot of work, collaboration, and perseverance.

Are you getting 20% COC with buying retail and with property management in place? 

What about taxes? 
If you pay 10% of your annual profits in taxes after depreciation, the COC would need to be 14.4%. As your income grows and you move into a higher tax bracket, taxes will put more pressure on your growth rate. I think a 16% COC will get you there.

But what about capital deployment inefficiencies?
The challenge is in establishing that constant deal flow of 16% COC that also allows you to deploy all your capital. If you count the inefficiencies of deal flow & capital deployment, you'll be forced to achieve a 20%+ COC to make up the difference.

Example:
You deploy your first 120k and yield a nice 15% COC, now you have 16.2k after taxes and another 120k saved. Now you have to find a deal that needs 136.2k with a minimum COC of 15% return. This deal will likely not be a cash deal as 15%+ cap rate properties are not abundant, so you're looking for a 545k property with 25% down or multiple smaller properties. Let's say you find one and end up with 18.4k after taxes. Now you have 16.2k from your 1st property, 18.4k from your 2nd property, and another 120k saved. Now you have 154.6k to deploy into a deal with a minimum COC of 15%. That's a 618k property. The year after you need to find a 700k property, then an 800k property, and then a 900k property and so forth. As your returns grow this problem only becomes bigger.

If 15% returns were possible in RE any day of the week, Wall St would be buying rentals. 

@Francisco Feliz I am pretty sure you can change the settings in Google Voice to show you caller ID instead of your Google Voice number. 

I've been using Vumber for a few months and I this is what I like about it:

• Good value at $10/month for two numbers
• Can set hours to forward to voicemail and hours to let the phone ring
• Can set auto text response
• One of the two numbers can receive faxes. Fax gets emailed to you.

What I don't like so much:

• Vumber app is not as sophisticated as Google Voice app
• If you want Vumber to put the call straight through when you answer the call, you lose Vumber Voicemail. This forces you to opt to use the press "1" to receive the call if you want to avoid losing the voicemail feature, so you have to answer the call  then press 1 to get connected. 

@Gabriel Benavidez I am an engineer with a minor in finance. My engineering income helped me tremendously in financing my REI career. I recommend you get your engineering degree (especially that you like the industry) and save as much as possible while investing wisely and you'll be in a great position in no time! You can always get an MBA later if you want to jump to the business side of things. However if REI works out for you, I doubt you'll want to stay employed :)

@Brian Adams Congrats on the tremendous success! 
How much was the down payment for a purchase like this? How many investors did you put together to pull this deal off?

@Austin Fruechting I should have checked out your blog sooner. I found answers to most of my earlier questions there. 
150k total investment to acquire 70 units is a brain teaser and definitely an eye opener! I would have 150+ units if I achieved the same ratio with the capital I've deployed so far. 
Thanks for getting the creative juices flowing. It's easy to get stuck in the routine of save & buy. 

Impressive! Congrats @Austin Fruechting! 2010 was a good time to start this journey. 

Did you see appreciation from the properties you purchased early on? How much of a role did equity play in ramping up your acquisitions?

Do you self-manage? 

What was your min cash flow per unit to make a deal happen? 

I also second Samir's questions :) 

@Jeff Filali Congrats on the success! Looking forward to reading/hearing more. Have you been on the podcast yet?

@Alex SImon You're already received good advice. You certainly need a better PM. A proper PM is someone you can reach fairly quickly to ask about your properties. Let this PM finish the evictions then do your due diligence and find a PM that understands your expectations.   

@Jay Raught Where does one find NPNs? How much capital needed to get in the game if I wanted to buy directly from the source and not through a note flipper?