Scaling Without Overleveraging — What’s Worked for You?

Scaling Without Overleveraging — What’s Worked for You?

Lender · Albermarle, NC · Member since 2025 · 237 posts · 90 votes

As portfolios grow, how are investors balancing leverage with risk? Interested in strategies others have used to scale responsibly.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
8mo

I have a fairly simple metric.  It must have cashflow.

I just look for deals that will cashflow, ideally at max leverage the bank will allow.  And, I know that following that metric blindly will push people to buy deals in bad parts of town that look like they will cashflow but actually don't.  I stay away from the bad parts of town and am looking for true net cashflow.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    8mo

    I have a fairly simple metric.  It must have cashflow.

    I just look for deals that will cashflow, ideally at max leverage the bank will allow.  And, I know that following that metric blindly will push people to buy deals in bad parts of town that look like they will cashflow but actually don't.  I stay away from the bad parts of town and am looking for true net cashflow.

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    8mo

    There is no balance.  The lender has the risk.  Just ask them.

  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    8mo
    Quote from @Tracy Thielman:

    As portfolios grow, how are investors balancing leverage with risk? Interested in strategies others have used to scale responsibly.

    I’m having a hard time following the logic of the question… the question itself fights against self as in a contradictory statement. leverage is one of the things that makes real estate extra attractive. 
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