Advice on investment strategies to scale

Investor · Lawrence, KS · Member since 2012 · 50 posts · 15 votes

I've been investing in real estate for over a decade, but never really gotten to the point of scale. I've owned 4 rentals, done ~10 flips, done BRRR and been a hard money lender. Never had a bad deal, always made quite a bit. I want to scale, but not sure how to develop my strategy.

I have a $200k HELOC and excellent credit worthiness and high income from my day job. I have property in Kansas and Massachusetts and have a Kansas realtor's license.

I’ve always been into single-families but now considering small multi-family. Never owned a short term rental.

Any advice on what you would do in my shoes?

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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
2y
It looks like you have some great experience. Is the issue in scaling in time strain and work flow or money? I think thinking about some of your hang ups and potential obstacles will help you to resolve it. Based on what you share you have experience in multiple facets so there's lots of directions to go!
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J.C. Martel
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Investor · Lawrence, KS · Member since 2012 · 50 posts · 15 votes
2y
Lien,

I think my underlying problem is strategy. My ‘buy box’ may be limiting me. I only hold decent properties in nice areas, modern construction, etc. I’ll flip anything where the numbers work. I’d say my flipping limitation is time. My ‘hold’ limitation is money, which is constrained by my buy box.

With a $200k HELOC, I could flip one property or buy 3, using it for down payments and leveraging loans. But these days, it's hard to find decent properties where the numbers work as far as covering the debt service with rental income.

I think what I need is to find a lender partner that will work with me to secure 3-5 properties over the next year.
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
2y
On paper lay out your scaling and resource categories. Define where you are at and where you want to get to. The prior poster noted the main categories.
Without more detail your note you will need to find a lender partner to scale. You should already have that person with the number of deals you have done. Talk with your one lender and strategize scaling with them. If you have multiple get rid of them. Pick one or find one.

Also in your strategy lay out the combination of cash flow and or appreciation.

Basically scale in paper and challenge it with your personal time, resources, desires, finance, insurance, PM, etc. Olus your buy box as you mentioned.
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J.C. Martel
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Investor · Lawrence, KS · Member since 2012 · 50 posts · 15 votes
2y
This is great advice, thanks. I will lay out my strategy on paper and meet with a lender. I’ve been working with my local credit union for the past few years, so I’ll head there.
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Terra Padgett
Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
2y
Are you wanting to stay an active investor or get into some more passive investments?
If the latter, I would consider putting your money to work in hands-off passive investments. Investing relatively small amounts into many different funds, notes, syndications, etc and having a chunk of your capital grow that way. In many cases, you’ll still receive the benefits of direct ownership such as appreciation, cash flow, tax advantages, etc, however with a lot less time and headaches. That’s what I would and have done in your similar situation.
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Jamie DietzBusiness Member
Lender · Pittsburgh, PA · Member since 2015 · 175 posts · 90 votes
2y
If you want to scale with flips I am sure there is a local Hard Money Lender that will work with you. My only suggestion is to focus and not try to do everything. If you have want to scale with flips build a team and make it happen. Its very hard to scale with flips, rentals and lending all the same time and be successful with each.
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @J.C. Martel:

This is great advice, thanks. I will lay out my strategy on paper and meet with a lender. I’ve been working with my local credit union for the past few years, so I’ll head there.

@J.C. Martel, is that CommunityAmerica by any chance?
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