Building capital as a first time investor

Multi-Family and Apartment Investing
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Building capital as a first time investor

Grace Tapfuma
New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes

Hi all, my name is Grace and I want to get into real estate! I would love to buy a triplex at the end of the year. I do not have the capital right now to do so but if i sold my business then i would! 

Should i sell my business to get this money? Would anyone have any suggestions! 

Located in Western Australia 🇦🇺🦘

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Henry ClarkPro Member
Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
1y

OP how old are you now?  Dont answer.  Financial freedom by 36.  That time frame will determine your RE strategy. 

Let’s say it is 10 years.   You won’t get there doing rentals.  Majority of your money is to pay the bank off.  

As you look at different RE approaches then figure out how you will Scale to the size you need.  

Read my suggestions above. 

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  • Jack Pasmore
    Specialist ¡ Member since 2025 ¡ 41 posts ¡ 18 votes
    1y

    @Grace Tapfuma 

    @Todd AndersonGrace, love the ambition—setting a goal like a triplex by the end of the year means you're already ahead of most people who just ‘think’ about getting into real estate. Taking action is what separates investors from dreamers.

    Todd, you nailed it—real estate is a long-term game, and selling a business that’s already producing income is a big move. The amount it is producing does play a big role in whether this is a wise move for you at this point, but before you make that decision, have you considered leveraging your business instead of selling it?

    One option could be using the equity in your business rather than cashing out entirely. Equity is the value of an asset (in this case, your business) after subtracting any liabilities. If your business is worth significantly more than what you owe on it, you may be able to borrow against that equity to fund your first deal—rather than walking away from a potentially appreciating asset.

    Some investors take this route, keeping ownership of their business while using its value to qualify for financing or attract a capital partner. That way, you get into real estate without giving up a good income source.

    Is real estate your long-term goal, or more of a shift from what you’re currently doing?

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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Jack Pasmore

    Okay, thats very interesting. Let me look into that. Whom would I have to speak to about helping me understand what ''using the equity in your business'' means?

     My goal is to achieve financial freedom by the age of 36 so I figured getting into Real Estate was the way to go. 

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  • Benjamin AakerPro Member
    Rental Property Investor ¡ Brandon, SD ¡ Member since 2015 ¡ 1k+ posts ¡ 1k+ votes
    1y
    You need to have a look at your business. Is it making you money? If so, maybe wait a year or two and save the money for the purchase. Why get rid of something that is doing well? If not, then selling is a good idea irrespective of the real estate. I don't know the laws in Australia, but in the states, you can usually get a low down payment loan if you will live in the place and you can do this up to a 4 unit and rent out the rest. You might want to look into that. 
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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Benjamin Aaker what sort of a person would I have to speak to, to get more information on this? 

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  • Henry ClarkPro Member
    Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
    1y

    OP you’re not ready to invest.  Your asking to many questions which you should already know the answer prior to investing.  Need to brush up on business.  

    1.  Join a Real Estate group in your area.

    2.  Talk with a real estate agent

    3.  Talk with a lender

    4.  Do several deal analysis on your type of property.  Ask people on BP to analyze.

    5.  Should you sell your business to finance a purchase?   Only you know.  If it’s making $10,000 a month, no triplex is going to earn that much.  You have to compare the numbers.  

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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Henry Clark 

    Okay.

    As i continue to study real estate! I've realized that I'm not looking to start another full-time career. Although, I am very interested in learning about real estate full time but not willing to make it a business. My goal is to achieve financial freedom by age 36 and to understand various aspects such as investing education, strategies, business planning, properties, marketing, and exit strategies. I want to learn everything i can!

    Could you share some avenues I can explore that align with this approach?

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  • Henry ClarkPro Member
    Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
    1y

    OP how old are you now?  Dont answer.  Financial freedom by 36.  That time frame will determine your RE strategy. 

    Let’s say it is 10 years.   You won’t get there doing rentals.  Majority of your money is to pay the bank off.  

    As you look at different RE approaches then figure out how you will Scale to the size you need.  

    Read my suggestions above. 

    1Reply
  • Henry ClarkPro Member
    Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
    1y

    OP your best RE investment will always be your housing up front.  To get started you need an additional strategy that helps you build cash.  

    0Reply
  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Henry Clark

    I've noted all the points you mentioned, and I'll take them on board asap!

    In terms of reaching my goals, I’m curious about which real estate strategy might be the best fit for me. Should I focus on buy and hold, flipping, wholesaling, or perhaps commercial properties?

    I  did say i am planning to sell my business to free up some capital. (The business is doing well so i thought sell it while it’s hot) While that’s my main focus, I'm also looking for ways to invest my extra income wisely, as I want my money to work for me. This is what got my interest in real estate I need to plant in harvest. 

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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Henry Clark 100% not 10 lol

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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Henry Clark

    By the way Henry, what is OP? haha :)

    and what does this mean? may you please break it down to me?

    ''your best RE investment will always be your housing up front. To get started you need an additional strategy that helps you build cash.''

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  • Henry ClarkPro Member
    Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
    1y

    OP original poster

    Your housing.  Do you own?  Or how much do you pay in rent.  Factor these into your investment decision.  To so a duplex or triplex.  Also don’t know your taxes there.  In the US you get favorable treatment both from a loan and tax standpoint.  Join a group there.  

    Are you near a resort area?  You might rent your house out during the high season and live in a cheaper location.  

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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    OP original poster: aww haha! Can there be fake posters? Or others?

    Your housing. Do you own? Renting.. Or how much do you pay in rent. $650 per week.

    Factor these into your investment decision. Factor: how so?

    To so a duplex or triplex. This seems like managing, which I do not care to do.

    Also don’t know your taxes there. (high haha)

    In the US you get favorable treatment both from a loan and tax standpoint. Join a group there ( what sort of group? The ones you mentioned above?)

    Are you near a resort area? (yes 100% tourist area)

    You might rent your house out during the high season and live in a cheaper location. (if you rent: you cannot rent out, and I do not really want to deal with people. I am in a service business and also a property manager so I am done with people after 7pm! Hence why I do not want to start another career that is too people based)

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  • Henry ClarkPro Member
    Developer ¡ Member since 2020 ¡ 4k+ posts ¡ 4k+ votes
    1y

    You have to find your own way.  Follow my original suggestions above.  Also keep reading BO posts.   Watch podcasts.  Etc. 

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  • Benjamin AakerPro Member
    Rental Property Investor ¡ Brandon, SD ¡ Member since 2015 ¡ 1k+ posts ¡ 1k+ votes
    1y
    Quote from @Grace Tapfuma:

    @Benjamin Aaker what sort of a person would I have to speak to, to get more information on this? 


    For business valuation there are a number of websites in Australia that can help. For a better estimation, find a business broker in your area.

    For the loan options, speak with your banker and try to get involved in local real estate groups. They will have a lot of information for you. 
    0Reply
  • Denise SuppleeBusiness Member
    Realtor ¡ Willow Grove, PA ¡ Member since 2017 ¡ 991 posts ¡ 646 votes
    1y

    Hi Grace, I have invested in properties most of my life. And while I did like it alot, it caused stress. I have sold all but one of my personal investment properties and decided to invest with others in passive deals with sponsors of larger apartment complex's, trailer parks and others. I like it because I can diversify more; which has lessened the risk for me (I have lost alot of money on a property purchase in the past). I love getting other's feedback as there are members from all over the US with various experience. And I can contribute as litte as 5K rather than the 10's of thousands I used to to purchase one property. May be a good start for you and you wouldn't have to sell your business. 

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  • Jack Pasmore
    Specialist ¡ Member since 2025 ¡ 41 posts ¡ 18 votes
    1y

    *I just replied to this message, but I lost connection. I apologize if it duplicates.*

    @Grace Tapfuma @Henry Clark @Benjamin Aaker @Denise Supplee

    Finding Your Best Strategy for Financial Freedom

    Hey Grace, Benjamin, Henry, and Denise,

    This discussion keeps getting better—appreciate all the insights here. Grace, it’s clear you’re serious about financial freedom, and I respect that you’re thinking through the best path forward. You don’t want another full-time job, which means your strategy should prioritize passive scalability rather than hands-on involvement at this stage in your venture. Before I continue, I'd like to make it clear that I am not a financial advisor by any means. I am responding with the experience and knowledge that I've gained firsthand by working with high profile investors in real estate. 

    Denise brought up a great point about passive investing through larger deals. I'm so glad that she did, because this is exactly what my company is doing. We are working on 40+ unit deals. This is a smart way to diversify, lower risk, and still get into real estate without managing properties yourself. A lot of investors start with direct ownership but later shift to passive syndications, real estate funds, or private lending to scale their wealth without the operational stress. Since you’re considering selling your business, this could be a way to put your capital to work without taking on the headaches of being a landlord.

    Right now, you’re at a decision point, and a few key factors will shape your next steps:

    1. Leverage vs. Liquidation – Selling a business while it’s thriving can seem like the right move, but you still have to explore leveraging its equity instead. Benjamin mentioned business valuation tools, and speaking with a business broker or a commercial lender could give you insight into ways to use your business’s value to invest without walking away from a strong income source.
    2. Investment Strategy That Matches Your Lifestyle – Since you don’t want something people-intensive, traditional property management or hands-on flipping is off the table. That’s where passive investments—whether in syndications, funds, or lending—could be a strong fit. You could operate as a Limited Partner (LP) while the General Partners (GP) are in the trenches doing the leg-work. The key is aligning your investments with the amount of time and energy you’re willing to commit.
    3. Speed vs. Security – Achieving financial freedom by 36 means you need a strategy that moves faster than traditional buy-and-hold rentals. Henry’s right—long-term rentals alone won’t get you there in 10 years unless you deploy significant capital upfront. You’ll either need to focus on high-cash-flow opportunities or equity-building plays (forced appreciation in value-add properties. Ironically this is my company's focal point right now). Denise’s approach to passive investing in larger deals would also be a way to generate solid returns without the stress of direct ownership.

    If you’re looking for actionable next steps:

    • Speak with a business broker to explore your options before selling / tapping into your equity.
    • Talk to a lender to see what financing and leverage options exist.
    • Look into syndications or passive investment opportunities like Denise suggested.
    • Join local and online real estate groups to connect with people successfully executing these strategies.

    There’s no single “right” answer, but the key is making a decision that keeps your money working for you without locking you into another job. There are so many avenues to generate income in this industry. I would love to hear your thoughts—what approach feels like the best fit for you?

    Best,
    Jack

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  • Robert Rixer
    Investor ¡ Miami, FL ¡ Member since 2015 ¡ 355 posts ¡ 268 votes
    1y

    As a fellow West Aussie who's now living in the US, I can tell you this forum and most of the training/courses you'll see online regarding multifamily investment isn't relevant/applicable in Australia. Negative gearing kills the market for cashflow investors. That and there's a strong bias to developing condos over apartments. I see very little apartment product over there.

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  • Dominic M.
    Property Manager ¡ Northern Virginia & DC ¡ Member since 2020 ¡ 157 posts ¡ 69 votes
    1y

    Hi Grace, your goal of getting into real estate is admirable. Selling your business to fund a triplex purchase is a significant decision. Consider the potential returns from the triplex versus the current and future value of your business. It might be helpful to consult a financial advisor to weigh the pros and cons. Good luck!

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  • Patrick DruryBusiness Member
    Real Estate Agent ¡ Columbus, OH & Cleveland OH ¡ Member since 2021 ¡ 1k+ posts ¡ 2k+ votes
    1y

    @Grace Tapfuma
    I wouldn't sell a perfectly fine business to get capital to invest in real estate unless there are indicators thats time to move on to something else. I would spend more time improving and scaling your business so you can make more money quicker so that you can get the capital to invest in real estate. It costs money to own and operate real estate which is why you need a primary source of income. 

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  • Matthew DrouinPro Member
    Developer ¡ Rochester, NY ¡ Member since 2016 ¡ 406 posts ¡ 339 votes
    1y

    @Grace Tapfuma I have no idea how things work in Australia but if I were you in the US…

    Don’t sell the business.

    Businesses usually sell for a much lower multiple of their products income than real estate does.

    To be honest, you’ve built out a lot of infrastructure to create a successful business and maybe reinvesting in it would create a much better return on investment.

    For which you could reinvest those future profits into real estate, once you’ve scaled your business into a money making machine that isn’t so dependent upon YOU to drive the bottom line.

    I had a friend (38 years old) just recently sell his medical device company for $30M dollars and now he’s using this chapter of his life to passively invest in real estate ventures.

    Meanwhile, I’ve been toiling out here for 19 years as a real estate investor and I’ve built a portfolio worth $18M and have a net worth of $5M at 41 years old.

    Sometimes the grass isn’t greener on the other side.

    Correct me if I’m missing something!


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  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Benjamin Aaker, who would manage those properties if I am hoping for a more hands off approach? 

    0Reply
  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Denise Supplee thank you! This is very interesting to learn. 

    1Reply
  • Grace Tapfuma
    OP
    New to Real Estate ¡ Western Australia ¡ Member since 2024 ¡ 41 posts ¡ 10 votes
    1y

    @Jack Pasmore

    • Hi Jack, thanks for your reply. Business broker to explore your options before selling / tapping into your equity.
    • What makes a business broker a good one? 
    • Talk to a lender to see what financing and leverage options exist: where cam i find these types of people? 
    1Reply
  • Benjamin AakerPro Member
    Rental Property Investor ¡ Brandon, SD ¡ Member since 2015 ¡ 1k+ posts ¡ 1k+ votes
    1y
    Quote from @Grace Tapfuma:

    @Benjamin Aaker, who would manage those properties if I am hoping for a more hands off approach? 

    Depends on your location. Googling 'property manager perth' gives a whole list of names. Alternatively, google the local real estate investment groups. I see Perth Property Investment on Facebook. Local investors can give you good leads for property management. 
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