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

    @Matt DeBoth thank you!

  • Palos Verdes Peninsula, CA · Member since 2017 · 20 posts · 5 votes
    8y

    @Daniel Toshner Congrats!  That's a huge milestone.  What type of leverage did you use to structure the deals?

  • Investor · Marysville, OH · Member since 2017 · 39 posts · 12 votes
    8y

    @Daniel Toshner, Nice post and congrats! Good to hear from someone who is using USREEB with a successful story; I started using them this year with a SFR deal in Ohio.

  • Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
    8y

    Awesome job @Daniel Toshner. Thanks for the inspiration to keep on working!

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    So are all of these units turnkey's?...through USREEB?....that's a lot of units in a very short time....

  • Real Estate Agent · Kansas City, MO · Member since 2015 · 85 posts · 19 votes
    8y

    Congrats! The KC market is the place to be!

  • Minneapolis, MN · Member since 2017 · 353 posts · 223 votes
    8y

    @Daniel Toshner

    Is your 20% return on a leveraged basis or is your cap rate at least 20% for the properties?  Just curious as it is quite a difference.

    Congrats on the growth!

  • Evans City, PA · Member since 2016 · 59 posts · 11 votes
    8y

    @Daniel Toshner

    congrats Daniel!  I would love to be in the same boat in the next 24 months!  keep it up!

  • Evans City, PA · Member since 2016 · 59 posts · 11 votes
    8y

    @Daniel Toshner

    did you start with turnkey investments with the group in KC?  I am assuming you have PM for all of your properties?

  • Kenneth HynesPro Member
    Rental Property Investor · Easton, PA · Member since 2013 · 357 posts · 92 votes
    8y

    @Daniel Toshner

    Great Job and good attitude about the investing .   Question  on  How did you pick your 'out of area" markets of kC, Ohio, WI etc .  Did you partner with your TK provider and they showed you some areas, or did you pick out the state areas first and then go look fora good TK company ?  

  • Lonoke, AR · Member since 2017 · 43 posts · 16 votes
    8y

    what is adverage price per door? And how much equity do you have in each door after close? Thanks

  • 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.

  • Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    8y
    colin...i agree...i am glad for the success but where are the details? seems a little pumped up to me? 151 units, partnered, all leveraged? makes a great BP post but that doesn't mean much to me...i am a numbers guy too...
  • Investor · Seattle, WA · Member since 2015 · 91 posts · 111 votes
    8y

    @Kenneth Hynes

    @Jack Ni

    Kenneth, I personally researched each area before I ever reached out to providers and made my own decisions. Something I highly suggest anyone do. 

    Jack,

    I’m always 25% down plus equity I’m getting on initial. 

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

    @John Bucknum

    Yes I started there and then started acquiring my own and traveling to the locations to do my own research. 

    I have PM on all out of state properties. 

    I have PM for in town 4 plex and then I self manage 5 units myself around Seattle area. Dont really plan on doing anymore than that. 

  • Real Estate Investor · San Diego, CA · Member since 2017 · 55 posts · 35 votes
    8y

    @Daniel Toshner When you say you target 20% CoC return, is that AFTER PM, insurance, utilities, Capex, and maintenace reserves? That seems like a really high bar, so I'm curious how you are analyzing the deal.

    Congrats!!

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

    "I’m always 25% down plus equity I’m getting on initial."

    Oh, so you had enough capital for 25% down on 151 units within 24 months. And enough capital for closing fees on all of those.

    Sounds like the real story is how you came to that quantity of capital.

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

    @Colin Simon yes sir. Original ones I bought I flipped for close to 100k more. Did a local flip in Seattle and sold a 4 plex I have in Seattle from 2011 that had quite a bit of appreciation as well and bet big and rolledall that capital into today. 

    2017 has been a crazy year of closings and acquisitions. My mind set was to always have a closing for selling or acquiring every month and I pretty much achieved that. 

    Where people I see getting caught up is they don’t believe that stuff like this is possible for themselves so they project opinions about irrelevant feelings. Like 50 cent said, “They hate then let them hate and watch the money pile up.”

    I can only worry about what I’m doing not anyone else and it seems to be working. 

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

    I took my undergrad in finance from 2009-2011, the bottom of the bottom. Even in freshman-level courses they show you how insanely lucrative it is to have high leverage with any business during a bull market, and how hideously dangerous it is during a bear market.

    My intention here isn't to be a jerk; but don't confuse yourself with 50 cent. You went all-in with risk during a strong bull market and came out on top. Which isn't too hard when a place like Seattle gets carried by tech giants and rampant Chinese investors. Be sure to get back to us at the bottom of the next recession - if you're still doing well, then I'll tip my hat to you.

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

    @Colin Simon be sure to get back to us when you have 1 property 10 years from now like you do today. 

  • Rental Property Investor · Miami Beach, FL · Member since 2017 · 105 posts · 59 votes
    8y

    Excellent job @Daniel Toshner! 

    Congrats and thank you for the  inspiration. Working on my dream here in Miami!

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

    @Daniel Toshner I took finance in undergrad in 09-11' too! Then I went out and bought 35 units. I tip my hat to you today good sir.

  • ARRT, RT(R) / Rental Property Investor · Newport Beach, CA · Member since 2017 · 360 posts · 242 votes
    8y

    Congratulations, Grant Fosheim!

    That is amazing!  $$$

    Daniel F. Harb

  • Rental Property Investor · Dallas, TX · Member since 2015 · 9 posts · 2 votes
    8y

    Wow! Very happy for you sir. Here's wishing you continued success in finding deals that make sense and just as importantly for taking a little and making a lot. I want to follow in your footsteps. Your path and success are simply awesome. Keep up the good work and continue to let us know how things are going; the good, the bad and the ugly too as it is useful! 

    Warmly,

    Reginald 

  • Kent, WA · Member since 2017 · 5 posts · 3 votes
    8y
    I am amazed that can find properties that have a 20% CoC!! Even in Seattle?
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