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

    Hopefully I responded to everyone! If I havent and you have questions, feel free to post again or shoot me a message! Thanks for all of the added inspiration, makes me feel important!

  • Flipper · Crown Point, IN · Member since 2017 · 15 posts · 10 votes
    9y
    Wow, that's awesome! Congratulations.
  • Dubuque, IA · Member since 2016 · 34 posts · 109 votes
    9y

    @Samir Shahani, if my math is correct...54 units x $600/month rent avg per unit=$32400/month. I did not say this was profit, this is gross. We have to pay expenses and bank loans out of this. Im not trying to argue, I am just presenting what I have done this year. To some, these numbers may not make sense but to us and our business, they do! Time to get back to work, hope everyone has a great day!

  • Lynchburg, VA · Member since 2017 · 61 posts · 41 votes
    9y
    Congrats on your success! Keep up the hard work. I think what he is trying to say is he receives 30k a month in rents. Cash flow means the profit each month after all expenses have been paid or budgeted for (PITI, Maintenance, Capex, Vacancy, Etc.) So he is probably cash flowing closer to $10,000 a month, which is still amazing man. Great job!
  • Investor · Easton, PA · Member since 2017 · 131 posts · 102 votes
    9y
    Originally posted by @Richard Biechler:

    @Samir Shahani, if my math is correct...54 units x $600/month rent avg per unit=$32400/month. I did not say this was profit, this is gross. We have to pay expenses and bank loans out of this. Im not trying to argue, I am just presenting what I have done this year. To some, these numbers may not make sense but to us and our business, they do! Time to get back to work, hope everyone has a great day!

     Certainly didn't mean to offend you. 


    Sorry if I did, have a nice day. 

  • Rental Property Investor · Fort Lauderdale, FL · Member since 2015 · 68 posts · 17 votes
    9y
    Originally posted by @Richard Biechler:

    @Chris Jensen, the first and last deal have been private, both not on the market. the 4th deal was not on market either, my broker just knew of the property and that the seller had and interest in selling it.

    @Henry Carter, thanks!

    @Diane G. and @Erik Hopperstad, total market is approx. 2.64mm and total monthly cashflow is approx. 30k.

  • Rental Property Investor · Fort Lauderdale, FL · Member since 2015 · 68 posts · 17 votes
    9y

    This is where the confusion came from IMO. It was stated 30k Cash Flow instead of income. 

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

    Also, I am more than happy to help people out with electrical questions. I am not condoning that you do your own electrical but if you hire and electrician and are questioning what/why there are doing what they are doing or why there are charging what they are, let me know. Im more than happy to try to help.

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

    @Drew Bonner

    @Benoit Malige

    That is about correct, probably more like $9k doing quick math.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    Wow, congrats and thank you for sharing your story @Richard Biechler!

    I have found that deals come in waves as well.  You may get a few years off whether you like it or not - or another tired LL may come back and offer you more units than you were planning to acquire that year.

    Are these in a large MSA or a smaller market?  Sometimes being a big fish in a small market has its advantages, too.  Congrats again!

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

    @Steve Vaughan you are welcome. I see and talk to quite a few people being an electrical contractor, so just getting in front of people helps! We are in a town of about 60k people minus college students. We have 3 private colleges here plus a community college.

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

    @Richard Biechler I'm curious, what does your Electrical company gross/yr? Or how much do you charge per hour? I'm looking into an absentee owner trade businesses and out here, plumbers, HVAC, and electricians are making a killing. Well over $100/hr. for each. 

  • Investor · Provo, UT · Member since 2016 · 4 posts · 2 votes
    9y

    Congrats! That's so rad.

  • Roshan K.Pro Member
    Oklahoma City, OK · Member since 2017 · 258 posts · 215 votes
    9y

    congrats man! That's awesome!!

  • Real Estate Agent · Atlanta, GA · Member since 2015 · 295 posts · 117 votes
    9y
    Congratulations! Awesome work!
  • Investor · Cumming, GA · Member since 2016 · 56 posts · 21 votes
    9y

    Congratulations on a great year.  You've got a good broker working for you.

  • Real Estate Agent · Denver, CO · Member since 2014 · 151 posts · 101 votes
    9y

    Very cool! This business is definitely about relationships. You keep getting calls because your broker and your network know that you close on deals!

    Good work!

  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    9y

    @Samir Shahani, my guess is that $30k/month is total rent?

    $30k/month rent for 54 doors, which is $555/month per door. It sounds like rent. $30k/month is definitely not NOI.

  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    9y

    @Richard Biechler, congrats on the accomplishments! My goal too to acquire 50 units within 3 years! Now I have several duplexes.

    I am more interested in the financing:

    1. How did you fund your down payment? Did you pull any equity out of the earlier properties to fund the later deals?

    2. What kind of loans did you get for financing? Are they local lenders?  

  • Real Estate Agent · Dallas/Fort Worth · Member since 2016 · 25 posts · 11 votes
    9y

    AWESOME! :D

  • Fort Collins, CO · Member since 2017 · 273 posts · 91 votes
    9y

    This is awesome!!  Congratulations!

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

    @Jessie Niu, thanks! 50 units in 3 years is a great goal to shoot for although I would shoot for 100, if you hit it you will be happy and if you dont, you will still be happy!

    I funded my down payment by working hard and saving my income. I also have a 49% partner in the deal with me which helps a lot! We have not used any equity yet, we are trying to purchase what we can before we start to use equity. 

    We are getting funding from one local bank on all but one deal. 20% down 4.25% interest 5 year lock 20 year amortization.

  • New York City, NY · Member since 2017 · 2 posts · 1 vote
    9y

    Encouraging!!!

  • Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
    9y
    @Richard Biechler A sincere congrats and thanks for inspiring some of us in the community with your efforts. I wish you continued success.
  • San Marcos, TX · Member since 2017 · 5 posts · 1 vote
    9y
    I noticed you mentioned 20 y/o, same age I am at this point. I'm here to ask what beginning steps are necessary to build on education and experience. Congratulations on your success.
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