From 1 to 54 units this year so far.

From 1 to 54 units this year so far.

Dubuque, IA · Member since 2016 · 34 posts · 109 votes
I just thought I would share because I'm pretty excited really! Being rather intrigued with real estate since I was 20 or so I have finally acquired some property. Circa 2005-2006 I built a couple of spec houses and made a few bucks not really knowing much. Real estate kind of went by the way side as I was working different jobs and building my electrical business. Last year I was working at a home that was in rough shape when the neighbor told me it was for sale. I ended up making an offer and getting the house. We remodeled it and am now renting it. Purchase price was 55k. We stuck about 5k in it plus my own labor and are getting $850/month rent. Last fall we got the line on 2-12 plexes side by side, and 2 more 6 plex units. The 2-6 plex units were dragging the return down to 2%. We took the 2-12 plex units with an 11% return after agreed on a price and the rest is history. Shortly thereafter we purchased another duplex with a garage and shortly after that another duplex. Just when we thought that was it for the year having a goal of 50 units that I was leary of hitting, our broker called and said, hey I know where there are 12 more units that you can pick up for a reasonable price you just need to make an offer on them. He told us what he initially wanted and we made an offer around $100,000 less and the seller accepted. We also asked to do this as a land contract with 20% down 4.5 percent interest which he also accepted. At this point I thought to myself, that's it for the year and low and behold the phone rang. The same guy that we bought the first 24 from that wouldn't move on the price of the other 12 had decided to take 130k off of the asking price from one year earlier. I said let's do it and that leaves us at 53 to date this year and 54 total!
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Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y

I'm disappointed at the criticism offered by some of you that didn't take the time to thoroughly read the man's post. Even as a newbie I could see it was 850 on first property and 30k was not his quoted profit.  There are green investors like myself that thrive off any educational experience we can get especially when it's  FREE.  Richard didn't have to share such personal detailed information next to his first and last name with location included.  If you think someone is feeding you nonsense to "look cool" please just ignore it. At best ask for clarification.  But don't hate on somebody that is helping the rest of us, I would hate for seasoned investors to refrain from sharing knowledge.  

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  • Rental Property Investor · Atlanta, GA · Member since 2017 · 221 posts · 188 votes
    9y
    very inspiring! keep up the good work
  • Studio City, CA · Member since 2017 · 33 posts · 8 votes
    9y

    Did just one lender do the financing for all of these? And was it for an entity like a corporation? Did you have an increase in interest with each successive project? That's what I've been told will happen. Thanks.

  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @ richard biechler - not sure if your numbers add up per my calculation...

    $30K in cash flow is $600/door... You said rent is around $850/door, so your cash flow should be around $250~ $300.... No?

  • Adam SherenPro Member
    Investor & Developer · Ludington, MI · Member since 2014 · 54 posts · 40 votes
    9y

    @Richard Biechler - sounds like some great networking has paid off! Keep your phone on - tomorrow could jump you to 75! Keep up the great work. I applaud your efforts and willingness to not shy away from rapid growth.

  • Investor · Renton, WA · Member since 2016 · 21 posts · 7 votes
    9y

    Congratulations! Very inspiring! 

  • Investor · Surprise, AZ · Member since 2014 · 46 posts · 15 votes
    9y

    Nice work!

    With scaling that quickly are you having a lot of growing pains? Still managing yourself? I'm currently at 14 units adding 10 more in the next few months. I'm thinking once I get into the 50 range ill be able hire a full time property manager.

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y
    That's awesome man. Congrats. As someone that's been where you are, hearing other success stories makes my day.
  • Investor · Hillsboro, OR · Member since 2016 · 304 posts · 153 votes
    9y

    Congrats on taking the plunge.  Did you ever freak out that they were happening so fast ?  Incredible.

  • Joshua DiazPro Member
    Rental Property Investor · Bronx, NY · Member since 2015 · 269 posts · 165 votes
    9y

    @Richard Biechler wow that is amazing.  There is pulling the trigger and then there is lighting the case of fireworks. Looks like you did the second one. Congratulations!

  • Laveen, AZ · Member since 2016 · 584 posts · 528 votes
    9y

    @Diane G. perhaps the 850/mo is just on the first property mentioned

  • Scotch Plains, NJ · Member since 2015 · 89 posts · 31 votes
    9y

    Great job. Very inspiring. 

  • Rental Property Investor · Pocatello, ID · Member since 2017 · 6 posts · 2 votes
    9y

    An inspiration! Looks like my goal is attainable in less time than I'd planned for. Thanks for sharing!

  • TX · Member since 2017 · 12 posts · 8 votes
    9y
    Congratulations Richard....
  • Investor · Easton, PA · Member since 2017 · 131 posts · 102 votes
    9y
    Originally posted by @Diane G.:

    @ richard biechler - not sure if your numbers add up per my calculation...

    $30K in cash flow is $600/door... You said rent is around $850/door, so your cash flow should be around $250~ $300.... No?

     I concur 100%, I think this guy is full of it .. and he hasn't responded to the tags which require him to provide details ... 

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Samir Shahani, you are correct, I'm just full of it. Actually, I dont sit in front of my computer and respond to posts because I'm actually working if I'm not responding. It takes time to sit down and read and respond to each post. I own and operate an electrical contracting company, I do debt collecting, I am in process of purchasing a directional drill, I have a new born baby and I work out daily.

  • Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    9y

    @Samir Shahani @Diane G. Why so quick to judge?? Maybe a little jealous? He was only talking about the first deal he did was $850/door. 

    @Richard Biechler Congrats! Sounds like you're a extremely hard worker and know how to hustle. Keep it up!

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Samir Shahani, in response to your first post. 20% COC is a great return, we are looking in the 10-15% range in our area, anything more than that is very hard to come by especially if it is turn key.

    We have funded our 20% down payments personally. It has taken hard work and dedication to be able to come up with this along with selling some things to stack money and then it seems like you throw it all away in a sense because it is no longer liquid. 

    We are somewhat self managing, we do have a manager that oversees the units, collects rents, cleans, gets ready for new tenants etc. She gets a percentage of gross rents. My partner owns a parking lot company, he is able to do all of the lawn, snow, lot maintenance along with plumbing. I do all of the electrical repairs and we share other daily/weekly maintenance. We work together when it comes to value add such as tile flooring, small drywall projects, painting etc. It helps that both of us are in a sense in the construction industry and are able to take time from our busy schedules to attend to these things.

    I dont feel comfortable at this time presenting specific numbers.

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Michelle Marty, It does take money to make money in a situation like mine but there are ways to get around it if you can find the right deal. Land contracts with little or now money down, private money from family/friends etc. I can imagine that prices in the dallas area are way different than they are in the midwest where I am located! The other thing you can do in your situation would be use leverage on existing properties that are paid down or paid off to purchase more! Keep up the hard work and keep in touch and I wish you well.

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Tim Heizer, I suspect the 12 units you speak of are the ones we purchased on contract. I guess all we did was asked if he would take 20% down along with 20 year amortization and 5 year interest lock with the balance due at the end of 5 years when we initially made the offer. He accepted assuming he didnt want the tax burden right away and wants monthly income.

    EDIT: yes I have one partner as mentioned above.

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @John Kuo the bank did not require reserves because the properties makes enough money to sustain themselves and the vacancy rates are almost non existent. We have a fairly good relationship with the bank which also helps. All of our loans are through a local bank. Remember the old saying, its not what you know its who you know! Networking has taken me to new levels, letting people know what I do and what I am interested in. It seems as though I have made it seem that I am passionate about the things that I do and people can see that!

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Judy Graff, read post above. We did not have an increase in interest. We are in the 4.25% area on everything.

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Diane G., correct the average would be somewhere in the ballpark of $600/door. The first home that I acquired is currently renting at $850/month. The rest of the units are between $515 and $685 a month.

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Adam Sheren, networking has paid off big time. Just letting people know you are interested and being nice to people helps. Its almost like they come out of the woodwork! Its funny you say keep your phone on, because that has literally been what has been happening lately! Sometimes its hard for my wife to grasp my concept of go big or go home, I typically dont do anything half ***! I have had a lot of inspiration from my in-laws who own some property and also form Grant Cardone.

  • Investor · Easton, PA · Member since 2017 · 131 posts · 102 votes
    9y
    Originally posted by @Adam M.:

    @Samir Shahani @Diane G. Why so quick to judge?? Maybe a little jealous? He was only talking about the first deal he did was $850/door. 

    @Richard Biechler Congrats! Sounds like you're a extremely hard worker and know how to hustle. Keep it up!

    @Adam M

    @Richard Biechler

    I am able to judge quickly because I can easily smell the BS ...

    First and foremost .. he said his 54 door, 2.64MM portfolio throws off 30k a month in profit.  

    Annual profit: $360,000 (30k x 12mo)

    Estimated down payment: $528,000 (20% x 2.64MM)

    That means you're telling me that with a $528,000 investment, Mr. Richard Biechler is able to generate $360,000/yr? 

    That's a 68% return every year not counting appreciation, loan paydown, tax benefits, etc, etc. ... you're basically Warren Buffett because if you add all those ROI factors in, you're above ~75% ... maybe even Warren would ask you to manage his money.

    Now, to your second question ... if he has 54 doors and a $30,000 a month profit .. each door is roughly generating $555/month profit ... this is unheard of.

    Christ, if this is all true, you can have my entire life savings, I'd love to see you earn 75% with my money ..

  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Brad Gibson, no growing pains thus far but I will say when I sit back and think...I have 54 units total now, its almost unreal to me. I love the fact that I can drive around and see what I own, so rewarding to me. We probably could hire someone full time but we dont have much for maintenance right now so what little we have, we do ourselves. We will probably hire a full time manager when we get to 100 or that is our thought anyway. I think if I was in this alone without a partner and part time manager, it would be a full time job for me. We are also using my partners office assistant to do some office work for us which helps drastically!

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