Closing on my 151st unit in less than 24 months!

Closing on my 151st unit in less than 24 months!

Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes

BP!

I would have never been able to do it without the BP community!  I will be closing on my 151st unit in less than 24 months.  If you told me I would have more than a 100 units when I first started looking into real estate I would have told you that you are crazy.  The more I listened to the podcast the more my belief grew.  I just kept thinking "if this person can do it then so can I!" I'm only 32 years old and feel like I am just getting started.

Anyway, I wanted to thank @Joshua D. and @Brandon Turner for creating an environment  for people like me that started from nothing to be able to move into this type of lifestyle and create passive income. The reason I started was to replace my wife's income so she could stay home with my two boys but now my whole household income has been replaced and I can continue to save my earnings for future deals and pay down debt.  

Also I wanted to thank @Sean Tarpenning and @Account Closed for being such a great resource and partner with me.  USREEB has really been like a separate family for me.  I really wish I could make the holiday party but I have my family in town for our own! Ha.  If you haven't checked them out it is a great turn key provider that can start people out right, which is exactly what it did for me!  

People always ask me, What should I do?  When should I do?  How should I do?  I always say, "In-desicion creates more loss than decision will ever."  Meaning, what was my secret to scaling so quickly?  It was just jumping in head first into it.  I knew mistakes would come and I knew failures would come but I didn't care because I saw all the wealthy individuals I knew with real estate portfolios.  I wasn't handed "a small loan of a million dollars" like our POTUS so I had to scrape and claw to get where I am today.  It sounds corny but just know where you want to get and be relentless until you get there. I've learned there is always a way if you want to get it done but you have to be flexible and understand others points of view so you can meet in the middle.  Remember there is no deal if there is no agreement.  

My portfolio is a great accomplishment thus far but I am only getting started.  I will be at 500 units before 2020 and once I get to that I will create a new goal. I just wanted to share with everyone that I got my early Christmas present!

Feel free to ask any questions as I am an open book and will try to respond as quickly as possible!  Thanks again to everyone who has helped!

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Investor · Boulder, CO · Member since 2017 · 61 posts · 32 votes
8y

Daniel, that sounds amazing. Closing on 151 units in that period of time is impressive.

Forgive me, but the analytical side of my brain can't quite accept your magnitude of success. I have so many questions:
-As someone else asked: if you're partnered on some deals, how do you claim 151 units? If you own 50% of a unit, how do you count it? Do you just say "30% of this unit and 70% of that unit = 1 unit"?
-What were your biggest financing hurdles? To take on that many loans, you must have made some complex and/or creative deals. Did lenders really just give you the green light repeatedly?
-Whoever was underwriting those loans(after they did it for the 10th, 11th, 12th time for the same guy within 2 years) must have cocked an eyebrow once or twice. What sorts of questions did you get?
-You must be leveraged to a very high level. Even paying closing fees again and again and again sounds like a strain. Doing that in a short period of time presents risks if there's even a market correction, much less a recession. Are you not afraid of that at all, and do you not see enormous risk in attempting to scale straight towards 500 units? 
-Building on the last question: wouldn't you rather let the whole "cash flow recycling" program run its course? It seems to me that with 151 units, with many of them cash flowing, you would have a powerful "velocity" of money with which to pay off at least a couple of loans, lower LTV's, and really entrench your position. Why wouldn't you take that path?


I'm still a newbie, let me know if my assumptions here are off-base. Thanks for your time :) and congratulations again. Quite the accomplishment.

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  • Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    8y

    Are these single family homes or multi family?

    Congrats on your 151st unit.

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    These are a combo. I have all. SFR's, 4 plex and MF above 5 units.

  • Investor · Salt Lake City, UT · Member since 2016 · 287 posts · 270 votes
    8y

    So how did you scale so quickly? 

    Love the motivation btw. 

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    I used existing cash flow from deals to purchase more and then I took on partners to acquire bigger deals so I can acquire more units.  Just felt like the quicker I got too 100 units the less risk I had.  

  • Rental Property Investor · Orlando, FL · Member since 2017 · 138 posts · 51 votes
    8y

    Awesome work! I get energized every time I listen a podcast episode. What cash flow or CoC numbers did you look for in your deals?

  • Boston, MA · Member since 2013 · 53 posts · 31 votes
    8y

    Congrats, that's amazing and inspiring! Where are your units located? How much did you put into your first deal and second deal? At what #unit did you use money solely made from your other deals and not out of pocket? Thanks!

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Account Closed My units are located all across states.  Seattle, Kansas City, all of Ohio, Tennessee and Wisconsin

    Also hard to say because I was also saving money to put into new deals.  I will always do that.  Its just a filter into passive income at all times.

  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 583 votes
    8y

    @Daniel Toshner that is a great accomplishment . I am wholesaling properties in the Kansas City market so now I am even more motivated to find off market deals for myself and other investors . 

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Gordon Cuffe awesome Gordon

  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    8y

    Just curious how you quantify how many units you actually own if you only own a partial interest in many of them. Also, how do you factor in reserves for all of those units if things get messy? 

  • Investor · Baltimore, MD · Member since 2015 · 160 posts · 76 votes
    8y

    Thanks for sharing your success story Daniel!  I've just got rolling with my first door and am looking forward to taking that and rolling it into more deals.

    Do you feel like you hit a "snowball effect" at some point?  Ie. it took a long time to get five deals together but then that cash flow made it easier to find partners, obtain financing, etc.

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Bill Regan  Great question!  Yes I felt like once I hit 10 units it was a snowball effect...  Then once I got 30 it was another snowball into more.  I never got complacent and decided this is good enough but rather want more.  

    I have very big goals and want to take care of my family for generations to come so the more units I can hedge my risk with this.  Once people see you have success they want to be a part of it so instead of having to convince people to buy real estate they want to be a part of it with you.

  • El Cerrito, CA · Member since 2015 · 257 posts · 129 votes
    8y

    @Daniel Toshner how much did you have of your own money to invest in your first deal and what did it look like? 

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Doug Woodville hey great question as well. I had equity in my home and I did a cash out refi. Felt silly to me to not have my money making me money on a monthly basis and that’s how it started. I think it was around 80k

  • Rental Property Investor · wyoming · Member since 2017 · 76 posts · 73 votes
    8y

    Congrats brother. Simply AWESOME and really shows what is possible!

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Dan Wickland thank you sir!

  • Rental Property Investor · Everett, WA · Member since 2013 · 389 posts · 222 votes
    8y

    @Daniel Toshner well done! How many units are in Seattle and what is your monthly income of these 151 units?

  • Realtor · San Francisco, CA · Member since 2017 · 408 posts · 361 votes
    8y

    That's amazing Daniel. 

    Can I ask a few questions How do you analyze a deal and what are your personal minimum expectations in terms of the return you want to get?

    Lastly, how do you structure the deal for investors? What do they get in return and how long are they tied up for? 

    High level overview of the 3 scenarios would be super beneficial to me. 

    Thanks!

  • Real Estate Investor · Kansas City, MO · Member since 2015 · 222 posts · 121 votes
    8y

    @Daniel Toshner Thanks Tosh for always being a pleasure to work with and for being apart of the USREEB family. We will miss you at the party! I wish you and your family continued success... and looking forward to our next deal :-)

  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Account Closed Mack Money! Thank you for all you do! Wouldn’t be anywhere without you

  • Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    8y
    Daniel Toshner congratulations, what an inspiration to hear that. Makes me want to get my butt in gear lol. I'll have to check out that turn-key investment group on Kansas City. Thanks for the lead.
  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Daniel Toshner It is really inspirational to see stories such as your story Daniel. 

    Thank you so much for sharing because these goals when set always seems unattainable especially the little voice inside of us sometimes tells us a different narrative. Clearly, folks like you have managed to prove that if you are relentless it will happen. The world would conspire to make things happen for you. 

    Congratulations to you Daniel, and I will definitely love to learn more. Thanks! - Ola 

  • New York, NY · Member since 2016 · 19 posts · 3 votes
    8y
    Hi Daniel, did you pay all cash for these properties or leverage to obtain that much cash flow? Seems like you were able to purchase them quickly.
  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Saj Johnson no most are leveraged 

  • Rental Property Investor · Carroll, IA · Member since 2017 · 63 posts · 53 votes
    8y

    Awesome job!!! That is quite the accomplishment. 

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