Any success stories out there that do not include a syndicate?

Question

Ive listened to endless podcasts, and I still have no desire to start or invest in a syndicate. I love real estate so much I love being on the front line and enduring the ups and down (more so the ups of course) and learning as I go.

I currently have my primary and a 4 unit here in Southern California.

Is it not possible to build and scale quickly without joining a syndicate?  Am I chasing my own tail thinking I can do it all on my own and build great wealth (relative, I know) ?

John Thedford · Answer

It depends on how much control you desire, your finances, and your ability to continue to scale up without a syndication. Keep in mind that a 25K investment in a syndicate of 2.5M is only a 1% ownership in the deal. I prefer to do things on my own. This allows me 100% control. You will find posts on BP of syndications that went bad as well as those that went well. I would definitely know WHO I was trusting with MY money. As to success, that is relative. I have 14 SFR mostly free and clear. That works for me, but for some, it is small potatoes.

Kevin Dong · Answer

I am kind of a control freak myself as well. I started with 200k in fort Myers Florida real estate market June 2017.   It is over a year now .   I am at around 1.5 millions assets including 16 free and clear rental units generating 13k gross rent and 3 flips going on .   I am doing fix and flips to generate more capital to buy and hold.   Mostly buying them .70 on a dollar or less.  I am a firm believer on you make the money when u buy.  And I am putting all of my profits back to business.   I am still small but I will get there. My goal is to double 2019.

Brandon Rodriguez · Answer

@John Thedford

Yes! I really being 100% in control. From managing the finances, hiring out contractors for work, to the psychology of keeping tenants happy and paying on time. Maybe someone could do it better for me, or as you stated, worse, but I want to know I’m to blame if something goes wrong, and again I’m the one who takes the credit when it goes very well. Now in the future I may not be against people I trust joining me, but I can’t put my money in another pocket.

Amy A. · Answer

This is a very good question!  My goal is to purchase a property that's large enough to have on-site management and maintenance staff, but with the liquidity and net worth required by lenders I don't know if I'll ever get there without partners or a syndication.  I guess I could be considered successful because I can live off my rentals without other income, but I'm still involved in the day-to-day management and maintenance and don't want to do this forever.  I've tried giving a few units to off-site management, but it didn't go well.

Jordan Williamson · Answer

@Kevin Dong is the man!

Brandon Rodriguez · Answer

@Kevin Dong

16 free and clear is not small. Congrats brother!! I’m generating $4700 on one property, 4 units. I need to get on your level.  Keep up the hustle!

Any success stories out there that do not include a syndicate?

Most Popular Reply