25 units at 24 years old - What I've learned

143 Replies

@Axel Ragnarsson

Good evening Axel,

The growth you made is phenomenal. I like your strategy in terms of leverage, and that you are yet very conservative. I'm about to close my first deal with a cash purchase, and have a question for you regarding refinancing. This is a good deal, which will give me a lot of equity, and a significant cashflow due to rents being at 2%. Due to a car business that I have owner for several years, I was able to save up significant amount of cash, and build connections with a lot of people who are willing to invest with me; I have access to more lenders, than to the amount of deals I can find. However, I have 1 problem - I'm 20 years old. You did mention that you do not currently qualify for conventional financing; may I ask why? I hope this is not because of your age. The only single concern that I have is refinancing the deal(s). I have the income and credit to qualify, however, I am afraid that banks might disregard me due to my age. I would appreciate your thoughts on this matter. Thank you. 

Congrats on your success! I totally agree with everything you said. 

Acquisition for equity with massive potential to pull up cash flow is a great deal on its own. 

It took me some time to find my comfort zone in terms of how much to leverage, but I think I find my sweet spot. I used some LOC on my last deal and it has been working great.

@Tashinga Musekiwa The lenders I work with pulled my credit initially but haven't after the first deal that we've done. They are much more concerned with the numbers on the deal, the plans for the property, and the terms on the debt. I think this is pretty standard practice for the smaller lenders who make a few loans to a few investors a year, as for the larger lending companies, maybe not - but I haven't worked with them so I wouldn't know. 

@Joshua Lidberg Thank you! Congratulations on getting started so young, I'm sure you'll be much farther along by the time you reach my age. I actually flipped cars in high school and college which is how I made earned enough money to get into the business... looks like we have similar stories. As for the issues I've had with financing, it was typically due to the fact that the income I was showing on my tax returns wasn't high enough to be qualified for conventional financing. I'm still running into this issue now since my tax returns haven't caught up to the growth of my business yet and likely won't for 1-2 more years. I would talk to some lenders (and give them your returns and current income verification) and ask them if you think you'll have trouble refinancing a property when the time comes, then you'll have the peace of mind you'll need to continue buying with the plan of refinancing. 

Originally posted by @Jared Carpenter :

@Javier D.

That has to be a pretty good price per pound. How many properties are your 60 units across? Is this your full time hustle?

 21 unit lev (2/1s)

10 unit lev (1/1s)

2 4plex lev (2/1s)

3 duplex lev(2/1s)

1 duplex cash (2/1s)

1 condo cash(3/2)

12 sfr cash(3/2s and 4/2s)

=57 doors

Lev= leveraged 75-80% of purchase price . 

C+ neighborhoods. Miami Dade and Broward counties.

I had some in Lee county but sold them a few months ago to buy the 21 and 10 unit

@Axel Ragnarsson I just moved to Manchester from Boston and looking mainly 4+ units in sorta remote C neighborhood towns like Sullivan and Coos county ? Have you had any experience in there yet ? Sullivan county looks better with opportunity zones and higher rents compared to the other ones towns are turning into ghost towns with people leaving. Challenge there is property management , there aren't many.

I would love to get a 4 unit in Manchester with myself occupying one unit but dont see any motivating deal . Any off-market or private network might suggest? Inventory super low. If you could help little would be appreciated

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