Working on first closing. Now what....

7 Replies

We gound our first property that has a good chance of closing. It was a bit high in what we could leverage funds for and after we close, our options will be limited. Can the bigger pockets folks please give us some idea and tips to keep the ball rolling? I feel like we might stall out after this deal is finalized.

Originally posted by @Amanda Rose :

We gound our first property that has a good chance of closing. It was a bit high in what we could leverage funds for and after we close, our options will be limited. Can the bigger pockets folks please give us some idea and tips to keep the ball rolling? I feel like we might stall out after this deal is finalized.

 Are you asking how to get fund for #2 when #1 is going to use all your capital?

Save more money

Brie Schmidt, Real Estate Agent in Wisconsin (#57846-90) and Illinois (#471.018287)

wow. Save money? Never thought of that. So you suggest we use all our own money to finance deals? That means our next property will come in about 30 years. No thanks. Thinking bigger and like an financially educated investor.

What are you asking? Do you want tips on how to get money to renovate current property or are seeking advice on how to purchase next property? For real save money is great advice, something many people don’t take serious...

Obviously "saving money" should be a small part. Thats such left quadrant thinking.

Im talking scaling up. Investor networking.raising funds. Maybe subject to.... Ive read 8 books. Listened to almost all the podcasts. Now i want to hear real world examples. Im intelligent enough to know saving money will not get us to the goal we have. But thanks

@Amanda Rose

Based off your unclear questions and abrasive responses, I would recommend first changing your tactics about how to network and work with other people..

If this first deal is tying up all your liquid capital, the two options you have are:

1) Build a professional network and offer deals you find and your hard work for other peoples money.  Structure partnerships that are mutually beneficial.

2) As @Brie Schmidt  alluded too, you wont be able to scale as fast as you want and you need to take a slower approach. For a large majority of investors, Real Estate is not a get rich quick scheme.  

@Amanda Rose - I bought 18 properties in 1 year.  As a financially educated investor my suggestion is to save money.

You have never owned property before, you need to scale up on your own and get a strong foundation of experience before raising funds.  I owned 21 properties on my own before I started considering partnering with others.  It would have been irresponsible for me to have done so any earlier, as I had not proven my worth or that I could run a business.   

Brie Schmidt, Real Estate Agent in Wisconsin (#57846-90) and Illinois (#471.018287)

I think every dime of cash flow the property produces should be saved in order to scale up. Doing that and continuing to pay down the loan should allow you to reset the equity at some point through refi or heloc and roll that into a new property. I think you have to get to property number 3 or 4 until the snow ball impact of the cash flow and equity is really felt, but even with one single family home it is there. 

If you paid cash, then with a 10% return it'll only take you 2 years to get to number 2 and way shorter to get to 3, just by saving the cash. 

Brie is someone to aspire too around here, so I would definitely listen to her advice. 

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