Real Estate Agent · Wichita, KS · Member since 2018 · 37 posts · 31 votes
I wanted to start this discussion to try and help other new investors brainstorm real estate strategies. I have done one house hack and am looking to scale quickly. For me the goal is financial freedom and passive income. That said, I am open to flipping and BRRRRing if it means I can scale quickly with less capital.
Scenario: You have saved $15,000 and have one or two deals under your belt. What do you do with the capital to grow it as fast as possible?
If you are an experienced investor would you please chime in on this and, knowing what you know now, give some advice to the members who have limited experience.
If you are a brand new investor pitch your ideas or plans to get your start in real estate.
Hopefully this discussion will help new and experienced investors alike.
Exactly Jonathan! Real estate is getting rich slowly not fast. I prefer to buy and hold and grow my money slowly. Investments grow along with your income and are something that compliments it and maybe 20yrs down the road will replace it.
In your case, I think finding a duplex or 4unit that you can owner occupy the property would be a good start. If you can't find a house and then rent out the rooms to supplement the mortgage payment.
At $15k, your man goal right now as an Agent should be to increase your income and savings. That would be my main focus. Now you can do both. Purchase the property and then focus all your energy in making more money and stacking the cash for the next investment. That's the formula. Increase income + Savings + Investments = Rich.
Investor · Wichita, KS · Member since 2017 · 584 posts · 813 votes
7y
@Jacob Henderson What is throwing me off about your post is the “as fast as possible” aspect. Why do things need to happen fast? Real estate, specifically buy and hold real estate, is a slow grind. It’s wealth accumulation. I don’t have any advice on how to grow 15k quickly, but I know how to grow it slowly; and then the next deal slowly but a bit quicker to get the next deal and the next deal and the next one until finally you are making money “quickly.” Pressure and time-Shawshank Redemption quote there :) I would invest in what you are comfortable with, in the ict you can find 30-40k properties with ease in C areas, maybe B even if you look hard and rent them for $800 a month. I can spend less than that even but am more comfortable than others might be in less desirable areas. I started this business with about the 15k figure you are asking about. When I began asking myself, “how can I...?” I found the resources I needed to do the deals I wanted to do. I wouldn’t let the 15k sit in the bank though, I’d figure out how to get it on the monopoly board.
Investor · Wichita, KS · Member since 2017 · 584 posts · 813 votes
7y
The key is to keep buying undervalued real estate in a niche you are successful in. A lot of people get complacent with one or two deals, keep grinding, buy another and then another. But celebrate your small triumphs. I like to think about the year on New Years when the ball drops, did I grow my business this year...? As years pass you can push yourself harder to reach bigger targets. If you do that you’ll hit financial freedom in 5-10 years I suspect. That is quickly in my opinion. You are fortunate to be in the Midwest, we have an insane opportunity here and don’t have to gamble on appreciation.
Exactly Jonathan! Real estate is getting rich slowly not fast. I prefer to buy and hold and grow my money slowly. Investments grow along with your income and are something that compliments it and maybe 20yrs down the road will replace it.
In your case, I think finding a duplex or 4unit that you can owner occupy the property would be a good start. If you can't find a house and then rent out the rooms to supplement the mortgage payment.
At $15k, your man goal right now as an Agent should be to increase your income and savings. That would be my main focus. Now you can do both. Purchase the property and then focus all your energy in making more money and stacking the cash for the next investment. That's the formula. Increase income + Savings + Investments = Rich.
Large postcards only, secondary market, Absentee 15+ years ownership, properties at and below the median market value only (C- to B- neighborhoods). A list of cash buyers in your market based on recent sales mailed for a 500$/mo budget as well. A 500$/mo virtual assistant to post on BP marketplace daily, scrub buyers off linkedin, send email blasts, post on local FB groups, zillow, etc...
Real Estate Agent · Wichita, KS · Member since 2018 · 37 posts · 31 votes
7y
Thank you for all of the input! I do realize that real estate investing is a slow process of accumulating wealth and I should have reworded my initial post before posting. Thanks for the advice.