Increasing rental portfolio quickly.
Hello community,
I would like to build a 20 to 30 unit portfolio(multifamily and SFH) in South Carolina. I have Fico currently have 30k on business credit card and I own SFH free and clear worth 40k that currently being rented. What is the best way to turn 30K into 100k in next 6 to 10 month so that I can start growing rental portfolio quickly?
Thanks in advance.
@Patrick Hendley, more than tripling your money in 6-10 months is probably unrealistic. If you focus on flips for a year or so, that will probably be the best way to quickly accumulate capital.
Turning 30k into 100k isn't impossible at all in a 10 month span. A deeply discounted few wholesale deals will do the trick. It's not particularly magical to be a 100k wholesaler over a 10 month span. Flips work too, just make sure they're bought way below market and resold quickly. That kind of ROI can easily be had on marketing dollars spent wisely- I recommend you identify a great, small list and market very very effectively to them.
Thanks guys for the feedback. I guess I could wholesale and flip my way to 100k goal but not all that familar with either. So I was thinking since I already have 30k in business credit, received 15k in business LOC today and bank will front me 30k HELOC on the 40k rental I own which brings me to a total of 75k, which means I need 25k more. Which would be the better method? Buying a house in cash, fix it up then flip or use hard/private to buy and flip? Or should I find a experience flipper in my area to partner with? I have close to a 800 FICO and a W2 job so getting financial should not be too difficult.
Originally posted by @Patrick Hendley:
Thanks guys for the feedback. I guess I could wholesale and flip my way to 100k goal but not all that familar with either. So I was thinking since I already have 30k in business credit, received 15k in business LOC today and bank will front me 30k HELOC on the 40k rental I own which brings me to a total of 75k, which means I need 25k more. Which would be the better method? Buying a house in cash, fix it up then flip or use hard/private to buy and flip? Or should I find a experience flipper in my area to partner with? I have close to a 800 FICO and a W2 job so getting financial should not be too difficult.
Go local, attend a local REI meeting and let your numbers be known, what you are intending to do and who can you partner up with to get you there, you will find out about deals and who is doing what right now that they will be able to bring to the table for you.
@Patrick Hendley, good for you that you have income and FICO that can get you financing along with high goals!
Perhaps start thinking a little bit creatively about doing deals without having to put all that cash and credit on the line? Are you thinking of going from a SFH to 20 units in one swoop?
I would suggest you don't fall prey to the current feeding frenzy going on in NC/SC. Get out actively prospecting for deals. With the right deal, believe me, you won't have a problem finding the money. Also, look for alternative ways to finance, or different ways to 'control' a property.
Go too fast, and you run the very possilble risk of over-extending yourself, and bang! there goes your 800 FICO.
Good luck in the hunt!