Thank you for taking the time to read my post. I have a goal to net 10k a month in passive income from my investment properties within the next 4 years and I’ve worked out some of the numbers
Multi Family 100 units netting $100 per door per month
Single Family 50 units netting $200 per door per month
Multi Family 100 units divided by 4 years is 25 units a year
Single Family 50 units divided by 4 years is 13 units a year.
I would prefer to go the multi-unit route but how can I purchase 25 units in a year?
I have 10k saved and my credit score is in the 750s. I just need help formulating my plan past this part.
Any advice would help. Thank you all have a great day!
@Brittany King is 10k all the money you have to do put towards this goal?
If that’s the case, I don’t want to tell you you’re being unrealistic, but you’re being unrealistic.
This doesn’t happen overnight and and I just don’t see this happening in 4 years. Within 10-15 maybe, but not 4.
I invest in a very affordable market where I can buy multifamily for 15k a door. At 100 does that’s 1.5M in real estate and 375k in downpayment money alone. You don’t get there in 4 years.
Give yourself 10-20 and take it one small step at a time. That’s the best advice I can give
I will root for you. And I can offer a little advice, bear in mind I am not an investor yet. But business is business.
You gotta get out there and hustle. Read the book guerrilla marketing. This book is gonna get you in the right mindset, it did me for my construction business.
You're here, and that's a great start. But get your butt out there and "drive for dollars" as they say on this site. You simply cannot talk to enough people if your wanting to grow aggressively.
Perfect your elevator pitch. You've got 10 seconds, make it count.
Don't be afraid of no. Ten no and 1 yes is still a victory.
Everywhere you go, ask everyone who their landlord is and get that phone number. I still do this. Buying gas, ask the cashier. At the bank, ask the teller. Grabbing some taco bell for dinner? Ask.
Go to the assessors site and use the search term "LLC" then Google that LLC and call them up.
See a for rent sign? Write that number down and call them.
Get out there and hustle. Those are just a couple ways I find property owners.
When you do get your first house, follow "The rule of 3" and talk to the person to the left, right, and across the street. When these people see what your doing, they will actually want to help, and you will have crazy good luck with this method.
All this only works if your going to be hands on. If you're wanting to hang back and be invisible it's going to be alot tougher.
I'm not saying you do the construction, but stop by the site to check on your guys and while there, start talking up the neighborhood.
@Caleb Heimsoth Thanks for the advice
@Bill Kramer Great idea about the assessors website thanks. i'll also read that book you recommended
If you want to get to your goal faster (in general terms, not referring to your 4 year mark), then consider partnering up. Find people with a complementary skill set and savings and you both contribute funds and help each other in an area you know and do best at.
Always, stay on top of educating yourself! Do it continuously through books, podcasts and networking!
@Alina Trigub. Thank you. That's a great idea
I just finished listening to this BiggerPockets episode for the second time because it was just that good.
It talks about the G.P.S.A method:
If you write down your goals you are 33% more likely to achieve them. Well, you not only wrote them down for yourself, you wrote them down for the whole BiggerPockets community can see it.
I believe you can do it and if you haven’t listened to this episode do it!
Once you’re done, listen to the other awesome episodes where the boys had guests from the military and get tips on how they did it. Awesome stuff!
Good luck in your journey. You got this!
The episode was from Dec 6 2018 called “The Science Behind Setting And Achieving Large Goals. For some reason the hyperlink I sent didn’t come through.
@George Tiglianidis. Thank you so much! Im going to check this episode out today! I appreciate the encouragement too
It is possible, but highly unlikely based on the cash flow numbers you are using in your analysis. By the way, why are you only using $100/door for multi and $200/door for SFH? If those numbers are based on your analysis of a particular market...then invest in a different one. You should be getting at least double that in a different market.
You also will need more than $10k in seed money. THis means you will need to flip your cash, over and over, as quickly as you can each time, reinvesting your profits each time in the nest flips, until you've reached a point where your seed money is enough to start spending the profits (on the next flips) as down payments on your rental units. At this point, each flip generates the nest DP. This can rapidly increase the number of rentals.
With all of this said, 4 years is a tight window...but it is possible, with the right strategies applied in the right markets.
That's a big goal. Go BIG or Go HOME. I Like it. One thing to keep in mind is you could get just 1 property with 100 units and meet this goal. If I had 4 hours to cut down a tree I'd spend the first 3 hours sharpening the axe. Learn all you can and get your feet wet with some smaller properties. Instead of doing 25 units a year you're ramp up will probably look something like this.
Year 1 - 5 units
Year 2 - 10 Units
Year 3 - 20 units
Year 4 - 65 units
No need to try to do 25 a year it will naturally scale. I had a goal of 24 units by the end of this year. I closed on a 7 unit in December, a 5 unit in March, and will be closing on 12 unit next month, which will bring us to 29 units total (had 5 to begin with) and it's only July. If you set your goals appropriately and go after them will full force you'll meet them quicker than you can imagine but you need to spend time sharpening your ax.
Good luck I'm hoping you post back on this tread in 3 years saying you just closed on a 120 unit apartment complex with 30,000 sqft of storage units.
@Jonathan Bombaci I think you have the best idea. The best route for your small time frame will be getting multifamily with 5+ units. I have a similar goal but giving myself a bigger window and I've opened myself to the idea of partnering with like minded people. I do think the initial seed money needs to be increased. Maybe look into small apartment complexes 5-10 units starting off this will help you scale faster if done correctly. I've been looking at complexes analyzing those deals so when one does comes that matches my criteria i can acquire it. Maybe look into a HELOC on any property you might own to help with the DP on other investment properties.
@Brittany King sounds like you need a partner, or a team of partners....
$10k on it's own isnt enough to even get you your first property in a conventional way, so you'll need to work on creative ways to do number one.
You'll need a network of people to help you accomplish this in 4 years.
@Bill Kramer is that book by Jay Conrad?
@Bill Kramer I love your mindset. I'm going to check out guerilla marketing myself. Thx for the tip.
I would continue to save as much cash as possible an find a single family property for a discount that needs rehab and renovate ,flip an pocket more cash, then buy a multi unit property with cash you have on an owner finance if possible.this is the classic trade up..
Good luck ,
@David Sturges Thank you
@George Tiglianidis great advice....
@Jonathan Bombaci Thanks for the break down! Thats a great strategy. Starting with 5 units seems way more manageable than 25.
@Brittany King your goals are small.
It is a question of financing and lenders have specific requirements. First I will work on the preapproval for the first deal. Never mind the $/door. Just detrmine what you are qualified to get first home and rest comes easier.
I paused at “I am not an investor yet” then read on because at 11pm on a Sunday night I have nothing better to do...
Crazy cause I haven’t had to do a single thing you’ve mentioned. That’s just too much hustle. I’d rather pay someone else to do that for me.
That’s a lofty goal for sure! First I admire you for having the interest/passion to do this. Second for just putting it out there. But you’re going to need more cash. 10k is a a sneeze! Go out there and get your first one. That’s it. Start out with door #1, then revisit your numbers and goals. Get to door #2 and repeat the process. You will learn a lot this way.
It can be done but your going to have to bust your butt , find creative finance opportunities and be willing to leverage and that means take on risk . As joe indicated you will or should not need nearly that many houses to accomplish this . If you are only getting 100 a door then you need to look elsewhere. Multifamily offers a higher ROI than single family of cash flow income is your goal . You need to snowball your income and portfolio rapidly and consistently to achieve this but it can be done and many have done it .
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