Rental Property Investor · Norman, OK · Member since 2018 · 158 posts · 529 votes
Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine... Multifamily investors, it's your time to shine!
In 50 words or less, let us know: What has contributed most to the growth between your first and most recent investment property?
By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!
@Kaylee Walterbach I can do it In one word “Tenacity”! You just have to keep pushing forward no matter how hard it gets, and be willing to do what ever it takes! I would say the biggest thing that got my wife and I from our first 5 unit 12 years ago to 91 units / 15 garages / 20 parking spaces now, is the commitment to keep expenses as low as possible and keep re investing all profits for the first 10 years. We did all the maintenance , upgrades , and management for the 1st 10 years. I know it’s not for everyone, but that’s how we grew to 8 million in assets , and a 70k Per month gross rental income.
Focusing on maxing savings of my W2 job towards each new property, then taking cashflow from that and snowballing w/W2 savings towards next. Faster and faster!
Ways to raise cash and use creative financing. During Covid my bank could not loan money but they could refinance with no issues.. go figure. I took a 401k loan, used credit cards, and a home equity to purchase cash with no contingencies then refinance to get a mortgage for leverage.
House hacking and youtube. The grit to tough out living in places with broken windows, shoddy plumbing, and raccoons in the attic in my 20s has paved the way to larger investments in my 30s. It taught me hundreds of DIY skills I use to save money today.
@Cathy Malmrose your spot on, if you dont take pride in your properties how do you expect the tenants to? Also like you said if your just in it for the money then your missing the best part, that sense of fulfillment/ pride and to know that your soul is employed in everything you do.. to me you can never put a price on finding ones passion :)
The willingness to partner with others. Starting out I felt like I had to do everything by myself. Looking back, I could have had more success sooner if I was more willing to work with others. People always say apartment investing is a team sport, but I didn’t fully embrace that right away.
Persistence and building the team that can contribute in different areas that I am lacking while putting systems and processes in place for running smoother and more effectively.
@Kaylee Walterbach As a 24-year old who recently syndicated their first multifamily deal, while being an active duty Air Force officer, I believe it's a willingness to consistently do what others won't and a compulsion to get around the right people. Multifamily investing is a people business - make yourself valuable and find the right team.
@Kaylee Walterbach, creative financing, we have a local lender that will carry a note for 80%, and we have located owners that will carry the 20% balance on a 2nd. It has allowed our company to grow much faster.
Scaling from BRRRR of 1-4 units to attempting to reposition a 40-unit apartment has required building trust between my team and I. Trust comes with time. Good property management and a process to execute rehabs are the two pieces of the puzzle to solve.
@Blake Dailey What do you feel like was the biggest determinent of getting you to those right people to begin that syndication? I am looking to invest OOS as my area in Wyoming is declining.
I saved lots of money doing a most of the rehab myself. Luckily, with my 1987 duplex, the most complex electrical work was adding an outlet in the crawlspace and plumbing was replacing a PRV. It took me longer than I would have liked with a FT W-2 job, but I learned what (not) to do on my current rehab.
Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine... Multifamily investors, it's your time to shine!
In 50 words or less, let us know: What has contributed most to the growth between your first and most recent investment property?
By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!
Experience is a better teacher than any class, book, or mentor. There are so many reasons why much of the advice on BiggerPockets and elsewhere pushes newcomers to "Just do it!" Once you finally jump in and make your first purchase, the real, hands-on learning begins.
@Jeron Smith For me it has been networking. I host a local REI meetup and I am also active online so that has helped to grow my sphere. I focus on building relationships and adding value to those relationships and that has produced opportunities.
Networking. 100% of my portfolio growth in the past few years has been from relationships. Early on I was competing against the world on listed properties. Now, because of my network, off market deals are presented to me...and sometimes from seemingly random connections.
Purchased a property from a guy who is now my mentor. He built this 12 unit apartment 40 years ago and has owned it ever since. He now enjoys watching me run his old apartment building and offers wisdom and guidance when we talk. He wants to see me do well with his old building the way he did.
Build relationships with financial institutions as quickly as you build your portfolio. There needs to be a correlation between scaling your portfolio and scaling your financial relationships and track record with local lenders. If both are done congruently, there is no ceiling for growth. I spend as much time talking with banks as I do underwriting deals.
Syndication! Requires less personal cash and allows you to leverage to bigger and bigger properties. It takes only two things: continuously finding deals and continuously finding investors. And for goodness sakes, stop fixing toilets yourself.