Five year strategy...

11 Replies

My goal is to own 40-50 properties (or doors) within 5 years. My overall "why" is so I can finally sell or dissolve my company and live off these rentals for passive income. The question now becomes... what strategy should I use to get there the fastest and safest? I am just starting out and trying to figure out my next move knowing it could make or break my plan. Knowing my timeline, do you think it's feasible (and wise) to start by going hard-core into wholesaling, then build up into fix & flips (for fast profit), and then rolling all of that income into buy and holds with the BRRRR method? Part 2 of this question... the forums and podcasts always talk about keeping your W4 job to show the banks income stability. I don't have that since I have owned and run my own company for 17 years. It was hard enough to get a loan for the home I just bought in Denver so I would love to hear from other self-employed people here about their experience in RE investing! If it matters, I travel most of the time for work but technically split my time between Orange County, CA and Denver. I'm interested in investing in Omaha but also looking into other areas as well. TIA!

@Julie Hill What option(s) you decide to take will be dependent on: 

  • Balance sheet  - how many $ are you willing to invest, how quickly and for how long;
  • Time commitment;
  • Risk/return expectations - newbie investor only look @ returns, whereas they should be focusing on understanding risk
  • Liquidity and risk tolerance - closely linked with the earlier point on risk/return expectations.

I would focus on picking a niche and taking a deep-dive. By trying to do everything at the same time, you will end up going nowhere and wasting valuable time, money and efforts. 

Considering you are going to be investing remotely, I don't think wholesaling sounds like a good option for you.  Also sounds like you travel a lot.  Wholesaling is labor intensive until you grow big enough to hire or outsource.  Also it's just like anything else, it takes a while to get good at it.  Certainly not a get rich quick type of business.

@Julie Hill In addition to what others have said, let me throw this option on the table for you to consider. I believe the fastest way would be for you to actually syndicate deals. Yes, it sounds weird and only the advanced investors do this... but, the best way is to use other people's money. 

The reason I say that is because of your current status as self employed. If you have worked for yourself for 17 years, then I 'm sure you have provided service to people, you have customers who trust you and value your work , your work ethic, ... etc. I know that most self-employed are also go-getters. 

Good Luck !!!

@Julie Hill If you travel a lot, you may want to look at slowly building up capital to buy your first property as a buy and hold. You'll probably need to bring in property management if you're investing out of state. Only buy in areas you feel comfortable with and the type of clientele it attracts. Good luck! 

Hi all,

@Julie Hill , from my experience you can find banks that do Stated Income (they will not ask you for your Income Tax Returns), the Interest rate is higher but if you find good deals it still can make sense. Specially, if you are doing a flip or plan BRRR.

@Henri Meli can you share an example of syndication deal. Thank you

Hello @Julie Hill

Sounds like you attended the webinar last week!

I think any goal is possible as long as you create a plan and take action on it!

I think an avenue you can focus on is are partnerships of multifamily properties to help you take a piece of larger portfolio and you can leverage the knowledge and expertise of the partners in your group. Also with multifamily properties you rely on numbers and providing value, instead of market swings.

I just started researching deals but if you have any questions I would be happy to help!

@Julie Hill your goal is admirable but practically undoable (I am assuming you don't have the capital to out right purchase those properties). You mentioned wholesaling and then flipping and then buy and hold. It takes at least 2 years to get a wholesaling business up and running and then another 2 years to get the flipping business up and running which leaves you 1 year to close on 40-50 buy and holds. You have a better chance of winning the lottery and that is the truth.

Find someone who has gone down the path you want to go (sell your business and retire with real estate) and then emulate them. 

Take stock of your resources and see what you can leverage to move up the curve.

Originally posted by @Bill S. :

@Julie Hill your goal is admirable but practically undoable (I am assuming you don't have the capital to out right purchase those properties). You mentioned wholesaling and then flipping and then buy and hold. It takes at least 2 years to get a wholesaling business up and running and then another 2 years to get the flipping business up and running which leaves you 1 year to close on 40-50 buy and holds. You have a better chance of winning the lottery and that is the truth.

Find someone who has gone down the path you want to go (sell your business and retire with real estate) and then emulate them. 

Take stock of your resources and see what you can leverage to move up the curve.

 Correct...and so far, with a couple of exceptions, the ONLY reply on this question that is correct....because it's the only one that used math.

I remember all the people in my life, my own and my daughter's, taking math that have said, "why am I learning this...I'm never going to use it?"

I now realize, after 50+ years of learning math (you never stop), that they were all correct...they never have, and probably never will, use it.

Thank-you Bill, you have finally put a check mark on the "I use math" side of the ledger.

@Dmitriy K. The quickest example I can refer you to would be Michael Blank syndicated deal analyzer (SDA). Discussion topic here.  

@Julie Hill Hey Julie, I haven't read the comments below, but I can assure you that not all are receptive to your joyful enthusiasm. 

First, I think you really want to take a step back, like a big step back, and accept that things in life take time. [Real Estate investing included]

Nature tells that a baby cannot walk in 1 month while logic tells us a 90-year-old may not be able to run a marathon in the Himalayas in 1 day. 

So, I think can see that you have the energy, positivity, and sheer determination to jump on the real estate investing bull and ride it out. However, you should not be discouraged when you realized that things do take some time. 

Pace your self, remember to enjoy the bull ride, and laugh a lot along the way as there is bound to be tears as well, but not all would tears of joy. 

Hope this helps a little, Julie. Goodluck. Thanks! - Ola 

Thank you all for your thoughts on this!!  Yes... I'm excited and am feeling the pressure (hence my 5 year mark).  You all make some important points here.  Lots to consider...

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