Has anyone successfully used the STACK method for asset growth?

7 Replies

Has anyone successfully used the STACK method for exponential portfolio growth? If so, was your first property a single family unit or multifamily? Local market or out of state?

@Sherman Dunn is it matter if the property is SFR or MFR ? i don't think so....

If you buy properties in an area that has no growth or high vacancy the STACK may not work.  perhaps you can explain YOUR understanding of the Method?

Thanks for the reply. My understanding is If an individual buys a SFR this year, using the stack method, they'd buy either (2) homes next year or a duplex, then the following year (4) units, and so on.

Or, 

One could compound the growth by purchasing (4) units the first year, then (16) units the following, then (64) after that. 

My question is, has anyone successfully completed these steps?

It's quite tough to go that route of purchasing an exponential amount of RE without either a source of income or an investor pool. I'd be interested to see how one would go about the raising of capital on something like that. 

I have not succeeded in this method, but I am scaling quite rapidly in the last couple of years.  I think it is feasible only if you grind and build relationships.  In the first couple of years, focus on developing your skills and illustrating to others that you know what you're doing and can close a deal.   Once people trust you, the rest is "easy."  I started investing haphazardly in 2007.  I started getting serious in 2014.  I'm now up to  25 units, so obviously quite behind the stack progression.  However, once you get above 50 units, you are in a minority of investors, including those on BP.  Happy hunting.

@Sherman Dunn

Hi Sherman,

never heard the term before. Thanks for introducing it. We have been able to refi and roll over the last 5 years and go from 25 units to over 900, without syndication.

You buy an asset, add value by increasing the NOI, then refinance it and repurpose the funds into your next deal.

It is possible, but it takes dedication, partners and a willingness to work hard and stay focused

Hope that helps

Gino

STACK = BRRRR

doesn't matter what you call it...adding value can be a very profitable strategy, particularly at scale like Gino has done it