It is taking so long to grow big..... what to do??

Question

Hi. So I am the managing partner of day to day operations for the investments with my partner (my fiance). I have no REI training so I do not know how to address my partner's frustration. We have bought for cash, houses to renovate and rent for a year and a half. We average 1 renter every one to two months. He is frustrated because at this rate we will never get more than 12 renters per year.

Has anyone gone through this? How does one make the leap from a few houses to 40+ unit apartment buildings. We need 40 or more renters per year.

Brian Garrett · Answer

Are you putting debt on them after you rent them or keeping them paid off?

If the latter is the answer then that is your number one hold back for scaling.

Alethea Sealy · Answer

We bought the houses cash so nothing is owed on them except taxes. But there are things such as minor repairs (update a pipe on a radiator etc).

As for why more than 6 units a year = simply to have passive income so we can take care of our kids, my parents and leave grandkids with something. Additionally, invest in other real estate projects.

Mark Holencik · Answer

It can be frustrating watching grass grow.

Why do you need 40 units a year?

Jonathan Taylor Smith · Answer

How long have you been at it? I've been in REI for 3 years and I've grown to 12 properties consisting of 14 units. During that time and process I've experienced and learned things that would now allow me to take on much larger properties, but I would not have been ready for that a year or two ago. I also note you stated you are purchasing with cash; whereas I've used reasonble amounts of leverage to get my properties - thereby keeping much of my cash for when I need to put down 25% on a nice $1M+ multi-unit property that I know will be coming my way very soon.

It is taking so long to grow big..... what to do??

It is taking so long to grow big..... what to do??

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