7th Purchase in 2 years and 4 months

24 Replies

Welcome to BP.

Today I purchased my 7th property in 2 years and 4 months. I bought my first property in May 2012 and today was 7th one.

My goal to buy 50 buy and hold rentals. I am 43 years old.

Curious, if I will be able to catch on to 50 before I get too old.

 Any suggestions / advice to speed up this process will be welcome.

Thank you.

Congrats James!  It doesn't sound like you need much help or motivation.  I'd be willing to bet you hit your 50 number before you know.

How are you finding the leads? MLS, direct mail, web, auctions...?

@james syed 

Congrats on achieving your 7th property.  one method for scalability maybe purchasing in a different market where you have stronger purchasing power.  In addition 50 might not be necessary if you have a say 20 paid in full and cash flowing that might be enough. If they are paid in full you have opportunity to leverage more. Another option is to move into multi-family you might be able to scale up to more units in a single address.  I think honestly you have so many options to scale. 

Not sure exactly how your market is trending but I'm guessing that in the last couple years it has been on an up swing. I'd bet that you will find many more properties that meet your criteria during the next downturn which may lead to high than average amounts of yearly acquisitions.

It seems like you do have a system for buying houses that works for you in your market. This is great, congrats!

To speed things up you might want to consider outsourcing some of the tasks that can be delegated to others while you focus on what you're good at/where you're needed.

I'm sure you've heard of the pareto rule: 80% of your success came from 20% of your actions - identify those actions, do more of them, and outsource the rest.

Things like prepping paperwork, sending out mailers, setting up home inspections...etc can be outsourced to a virtual assistant, an intern or someone you mentor - you can focus on lining up financing, talking to sellers...etc

The 4 hour work week by Tim Ferriss is a great read on this topic. Good luck to you

@Jerred Morris

Thank you for responding.

I am real estate broker and have access to tons of data. In addition, I am constantly searching for deals. Also, I have surrounded my self with investors and brokers in the area. And last, I want to give my an ENORMOUS appreciation to the following BP members;

1. @Joshua Dorkin   (to launch such a great platform where people like me have learned a lot). 

2. @Brandon Turner (his 2% and 50% as well as $100-$200 per door strategies have given me a huge confidence, thumbs up!!!!! Brandon).

3. @Dawn A. (very smart gal, especially her 3% rule (strategy) has inspired me.

4. @J Scott (great book on flipping and very deep inside information and knowledge that he gives out to everyone for free)

List goes on..............

Thank you again for responding.

@Jonathan Wilks   

Thank you for responding. 

I like the idea of breaking into a market where I could get more bucks for my money. I prefer buy and hold, however I am beginning to get more into flips after learning so much from J Scott.

@Lamar Cannon

Thank you for responding. 

Because I am real estate broker and involved a lot in real estate in general, I am seeing a drop in price by 10 -15% in the area that I am in and that has assisted me buying in to more properties. 

Thank you for your input.

@Zaid R.

Thank you for responding. 

I like your detailed post here. It has helped me a little because some of the stuff you have mentioned above, I kind of ignored it.

Gratefulto your suggestions.

Wow 7 properties in that short amount of time is incredible! I have been planning on acquiring a property every one or two years- much slower. How are you working the financing on your buys? Conventional loans?

@James Syed 

Congratulations on picking up your 7th property.    I too have a 'magic' number of (40) doors based upon $300 per door.  However, goals will change and it's just a map for a starting point.  Like some of the others that have kindly replied have said, if the properties you hold are fully paid off and generating more cash-flow per door;  then the # of doors you need to hit your 'target' monthly cash-flow figure goes down accordingly.

Run your ROI. Figure on getting your investment back plus some...., then cash-out refi or sell based upon running your ROE (return on equity).

Best of luck.

VB

Congrats!  Thanks for the shout-out!

Congrats thanks for sharing. It's Inspiring

@James Syed 

I had planned on buying 2 properties this year and saving for more. I just leased my 4th purchase and have my 5th under contract. The secret for acceleration? Evaluating ARV and rehab accurately to ensure a good deal, OPM, win-win thinking, and creative financing.

The biggest accelerator has been discovering the Delayed Financing Exception for cash out refinance.  It allows me to buy houses for cash (using borrowed funds) and then refinance the cash back out so I'm ready to buy another.  And I can do this until I hit my 10 Fannie Mae mortgage limit and then give my private lenders back their money that helped me purchase multiple houses.

@Kyle Denmark  

Welcome to BP. 

First 2 loans were Fannie Mae (30 year fixed) and the rest of them are all portfolio loans (5 years balloon).

James try to generate more closings. The extra capital generated will accelerate your investment and growth potential.

The hardest part is most people do not have money to start so that initial push going small and growing it takes a long time to get the snowball big. They only have salaries of 50k to 100k a year etc.

In our profession the income knows no limits. You can make 10,000 in commission a year or millions. We have the inside track to the best deals for the asset classes we specialize in.

You can also syndicate to get slices of multiple deals along with your sole properties you own.

I am looking at buying a few retail strip centers by myself and then I am setting up my own pool for investors to invest in. So I will have equity position, commissions in and out, and cash flow but only after the partners / investors are paid first.

You can do single property syndicates but must get partners approval versus a blind pool is just an investment fund and then I make the decisions with the money and pay out a certain return. Right now I am closing out a bunch of transactions for years end.

Hope it helps. 

    

@Doug McLeod  

Thank you for responding.

I really like your comment below;

"Evaluating ARV and rehab accurately to ensure a good deal, OPM, win-win thinking, and creative financing."

I totally agree with you. 

I haven't done any cash out yet because I made a decent profit on my last profit and using those funds now to acquire more properties. When I started I had $100,000 saved up from the last profession I had. 

I will have to do the refi cash out once I run out of current funds. 

Thank you again for your advice.

@Joel Owens Thank you fro advising. 

I am trying to acquire more closings however, my farm area is not that big and a lot of is rural area, Therefore, it is hard. Now, city like Chicago is a total different breed. You could make tons of money there just by brokerage. 

I am getting serious to get into patterning up with some investors like you had suggested. 

Thank you again for your assistance.

@James Syed Grats on #7! I find that partnering with other motivated investors helps things move along faster than I could ever go by myself. The whole 1+1 = 11 when it comes to partnerships idea.

Congrats!  I have two in the last 10 years (haha), with one way under water! :-(

I'm looking to get back into real estate, but will be smarter and go in with a plan.  BP has been a great resource so far and hearing stories like yours is very motivating.

Wishing you continued success!

@Edgar Collado  

Thank you for responding to my post. 

And appreciate your kinds words. 

Keep investing. 

Biggerpockets is a great platform to learn. I personally have learned a lot here even though I am an Illinois real estate broker, but the confidence I got from biggerpockets, it is amazing. 

Keep investing and good luck.

Great job and I hope to get number 1 by year end.  Your post was inspiring and hopeful since I am hoping to bridge into this career full-time in 5-6 years.  Good luck and all the best!

@James Syed  Congrats on this great achievement in short 2 years!

When you say you get portfolio lender to fund your properties, are you getting the loans in your name or you company name (LLC?)?

@Gautam S.  

I am sorry for a late response and thank you for responding. 

All of my loans are under my LLC name. I have a series LLC so I could protect my properties more effectively.

I usually have to pay 25% down and it is amortized over 20 years.

Keep investing.

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