on't have to buy a 400-unit for your first deal

Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes

👉You don't have to buy a 400-unit for your first deal

But I would recommend this:

Just get started.

Figure out how much time you have to devote to real estate investing and determine your goals.

You can get started in 3 ways:
1. Buy a 6-unit on your own
2. Acquire a 40-unit with a few local partners
3. Invest passively with an experienced real estate investor

Stop procrastinating
Stop having analysis paralysis

Taking no action is the riskiest thing you can do.

// Let me know if you plan on investing in real estate this year 👇

3 Reply

20 views

Most Popular Reply

Scott TrenchPro Member

Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes

@Justin Goodin - I'd be interested to learn more about this.

I want to call out some incongruities here, given that you just DM'd me asking to delete @Melanie P.'s direct challenge to you.

1) Your post is literally titled "You Don't have to buy a 400-unit for your first deal".

2) Melanie is calling you out on this one because the deal at the bottom of your "portfolio" page on your website (a reasonable person can infer that it is the earliest acquisition for Next Level Equity) is literally a 236 unit apartment building, which is a little incongruous with the title of your this forum thread you started.

3) Melanie is directly challenging you, stating that she doesn't believe you were involved in the deal. And, alleging your response deflecting her challenge.

4) You DM'd me asking to delete Melanie's posts.

5) You are the most prolific contributor in this multifamily forum.

You can see why this set of facts is setting off a number of alarm bells for me. My job is to preserve the integrity of this brand, and that starts with an open and honest forum, and the ability to be frank.

Good operators deal with challenges all the time - that's how they raise capital from skeptical LPs, like me.

You can put them all to rest by directly answering Melanie's question. I'd like to know now too.

Podcast Guest on Show #223

2 Reply

See this reply in the discussion

8 Replies

Jump to latestLatest

Sort by

Erik W.
Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
2y
Thank you for this. I see far too many newbies here ready to go start syndicating and buying 100s of units.... and they've never even met a tenant other than their neighbors. Sure, a few have gone out and killed it on the very first deal, but that is the exception, not the norm. Good advice comes from the norm. That's why they call them "Best" practices, not "Imma SLAY IT on my First Deal" practices.

I started with one dinky little Class C house in a so-so hood in 2005. Still own it to this day. Did I slay with it? Nope, and I never would have gotten someone to do a podcast for me. But... I'm still here in 2024. Lots of the "go big or go home" folks are not here because they went big, lost their shirts, then had to go home. You never hear about the failures, except maybe in the divorce decree filings because they forgot about their spouse and bankrupted their family trying to sprint before they learned to walk.

1 Reply
Ashley Mitchell
Member since 2023 · 2 posts · 1 vote
2y
You are right. My first deal was a renovated duplex that i found on zillow. I didnt have a realtor. I just called the number connected to the posting. I closed in October 2022. Still househacking. Hopes of purchasing #2 duplex end of the year.
1 Reply
Melanie P.Pro Member
Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
2y
Be very careful about what constitutes the "experience" of "an experienced real estate investor." Today I reviewed the website of one of these shady syndicators, Next Level Equity in Indianapolis. Their portfolio page had a project that I was familiar with and based on what I knew I didn't think they could have been involved with it. So I asked the CEO, Justin Goodin, to explain why it was there and he had no explanation and said it, "didn't matter." Keep in mind it was the largest portfolio reference on their entire site.

Many people here hold themselves out as experts and experienced when the training wheels are still on their bicycle. Letting someone train with your investment dollars is a VERY risky proposition.
0 Reply
Justin Goodin
OP
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
2y
Quote from @Ashley Mitchell:

You are right. My first deal was a renovated duplex that i found on zillow. I didnt have a realtor. I just called the number connected to the posting. I closed in October 2022. Still househacking. Hopes of purchasing #2 duplex end of the year.
I really wish my first home purchase was a house hack. Great way to get started!!
0 Reply
Justin Goodin
OP
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
2y
Quote from @Erik W.:

Thank you for this. I see far too many newbies here ready to go start syndicating and buying 100s of units.... and they've never even met a tenant other than their neighbors. Sure, a few have gone out and killed it on the very first deal, but that is the exception, not the norm. Good advice comes from the norm. That's why they call them "Best" practices, not "Imma SLAY IT on my First Deal" practices.

I started with one dinky little Class C house in a so-so hood in 2005. Still own it to this day. Did I slay with it? Nope, and I never would have gotten someone to do a podcast for me. But... I'm still here in 2024. Lots of the "go big or go home" folks are not here because they went big, lost their shirts, then had to go home. You never hear about the failures, except maybe in the divorce decree filings because they forgot about their spouse and bankrupted their family trying to sprint before they learned to walk.

Totally agree! Don't focus on unit count when you're getting started. Focus on buying great deals.
0 Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
2y
@Justin Goodin - I'd be interested to learn more about this.

I want to call out some incongruities here, given that you just DM'd me asking to delete @Melanie P.'s direct challenge to you.
1) Your post is literally titled "You Don't have to buy a 400-unit for your first deal".
2) Melanie is calling you out on this one because the deal at the bottom of your "portfolio" page on your website (a reasonable person can infer that it is the earliest acquisition for Next Level Equity) is literally a 236 unit apartment building, which is a little incongruous with the title of your this forum thread you started.
3) Melanie is directly challenging you, stating that she doesn't believe you were involved in the deal. And, alleging your response deflecting her challenge.
4) You DM'd me asking to delete Melanie's posts.
5) You are the most prolific contributor in this multifamily forum.
You can see why this set of facts is setting off a number of alarm bells for me. My job is to preserve the integrity of this brand, and that starts with an open and honest forum, and the ability to be frank.
Good operators deal with challenges all the time - that's how they raise capital from skeptical LPs, like me.
You can put them all to rest by directly answering Melanie's question. I'd like to know now too.
Podcast Guest on Show #223
2 Reply
Ashley Mitchell
Member since 2023 · 2 posts · 1 vote
2y
Quote from @Justin Goodin:

Quote from @Erik W.:

Thank you for this. I see far too many newbies here ready to go start syndicating and buying 100s of units.... and they've never even met a tenant other than their neighbors. Sure, a few have gone out and killed it on the very first deal, but that is the exception, not the norm. Good advice comes from the norm. That's why they call them "Best" practices, not "Imma SLAY IT on my First Deal" practices.

I started with one dinky little Class C house in a so-so hood in 2005. Still own it to this day. Did I slay with it? Nope, and I never would have gotten someone to do a podcast for me. But... I'm still here in 2024. Lots of the "go big or go home" folks are not here because they went big, lost their shirts, then had to go home. You never hear about the failures, except maybe in the divorce decree filings because they forgot about their spouse and bankrupted their family trying to sprint before they learned to walk.

Totally agree! Don't focus on unit count when you're getting started. Focus on buying great deals.

Wow that's amazing that you still own the property from 05! although it is the hood, i bet you have alot of equity. Have you ever used a HELOC . You are right, we never hear about the failures, only those that typically start out with tons of cash
0 Reply
Justin Goodin
OP
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
2y
Quote from @Scott Trench:

@Justin Goodin - I'd be interested to learn more about this.

I want to call out some incongruities here, given that you just DM'd me asking to delete @Melanie P.'s direct challenge to you.
1) Your post is literally titled "You Don't have to buy a 400-unit for your first deal".
2) Melanie is calling you out on this one because the deal at the bottom of your "portfolio" page on your website (a reasonable person can infer that it is the earliest acquisition for Next Level Equity) is literally a 236 unit apartment building, which is a little incongruous with the title of your this forum thread you started.
3) Melanie is directly challenging you, stating that she doesn't believe you were involved in the deal. And, alleging your response deflecting her challenge.
4) You DM'd me asking to delete Melanie's posts.
5) You are the most prolific contributor in this multifamily forum.
You can see why this set of facts is setting off a number of alarm bells for me. My job is to preserve the integrity of this brand, and that starts with an open and honest forum, and the ability to be frank.
Good operators deal with challenges all the time - that's how they raise capital from skeptical LPs, like me.
You can put them all to rest by directly answering Melanie's question. I'd like to know now too.

Thanks Scott!
I don’t owe any troll an explanation or proof about anything on my website. It’s a pretty small world, so you both can ask around and I’m confident you will hear great things about us.
I’m also challenging Melanie to prove her identity 😅 This is a random person with no info or profile pic, hiding behind their keyboard.
This is a little surprising that such trolls are allowed here on the forums. And they are allowed to spread misinformation. That’s why I asked for it to be deleted. It really hurts the quality and conversation of the group.

Thanks for checking out my website!

0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.