Forming a strategy- start by buying rentals??

Question

Hello BP community! My partner and I are trying to formulate a plan of attack! It seems like a lot of people start out wholesaling then flipping, then buy and hold. We are thinking of doing things in the complete reverse order (actually we'd like to bypass wholesaling all together). Our thought is that by buying rental properties, and improving our portfolio we will have a lot better borrowing power. We could leverage our holdings to buy the next property as well as build credit and work towards an unsecured line of credit from a bank. And then maybe do some flip deals once we have easier access to money. We will be financing all of our purchases, we are not able to buy cash. What do y'all think of this strategy?? Any tips/advice?

Thanks and happy investing!

Denise Stanford · Answer

Sounds like a good start.  Learn from others that have similar strategy.  Buy and hold and continue to pyramid your holdings into more properties.

Much success!

Hattie Dizmond · Answer

It's a solid strategy.  There's no one way to get into the game.  Read Brandon Turner's back story.  He started out with buy & hold.  And, read his entire description of the BRRRR strategy.  That's exactly what you're talking about doing.  There are very few truly new ideas, so you might as well leverage the knowledge and experience of others who've already been there and done that.  Besides...if Brandon can do it...well...you know!!!

LMAO

John Weir · Answer

I think that you have a pretty good game plan in order. I started out with buy and hold, and it's done well for me! I am a real estate agent as well so that helps a lot. I bought my first three properties cash and now I'm about to buy two other with a HELOC. Talk with a local loan advisor or mortgage specialist to get a good idea of how all that works, it can get confusing. Best of luck!