180 units in 12 months!

180 units in 12 months!

Investor · Member since 2021 · 62 posts · 108 votes

My partner, @Account Closed and I have been on an incredible journey for the last 12 months! We started our real estate investing business about a year ago, with the goal of retiring from our W-2 jobs within 3 years. We set a goal that both scared and inspired us. We then had to figure out how to get started...

We live in Seattle, WA. After extensive research we liked the opportunities we were finding in Cleveland, OH. So we had a target market, but with everything happening in the world it seemed daunting to get started, and there were many excuses and limiting beliefs that almost got in the way...

With the ongoing pandemic, how could we get to our target market to meet people and make deals happen? 

Retire in 3 years?! We don't have that kind of cash on hand? 

How are we going to find these deals? 

We both have full time W-2 jobs, we do not have the time to pursue such a crazy goal.


Thankfully friends helped keep us accountable. When we listed these excuses, our friends said "Oh you must not want it that badly...." OK! That lit a fire for us to just get started! Here's what we did:

  • We decided to move to Cleveland for 6 months to allow us to really learn the market, meet people and make deals happen. We can both work remotely, so we really wanted to take advantage of this time to make our dream happen.
  • We started small, by acquiring several single family and small multi-family properties.
  • We set a stretch goal to own 50 units by the end of 2021.
  • We self managed everything at first, which meant nights and weekends hustling to fix toilets and turn units. We learned a lot of valuable lessons doing this, one being that this was not a good use of our time!
  • We knew if we wanted to scale to 50 units we needed to after bigger deals. And so we started networking and meeting as many people as we could in the space, learning whatever we could from them.
  • We listened to audiobooks and podcasts non-stop (still do!)
  • We worked on our mindset, identifying and crushing limiting beliefs
  • We joined a mastermind group! This has made all the difference for us. Being surrounded by like-minded people, doing the kinds of deals we wanted to do has been such an incredible learning experience. We have constant accountability with this team and our mentors and we are inspired every day by each other's successes. We knew that joining a mastermind was an investment in ourselves that would have a tremendous ROI.

Through all of this hard work, education, and networking, we are so thrilled to say that last month we became GPs in a 151 unit deal in Columbus, OH. We absolutely blew our 50 unit goal out of the water. We were given the opportunity to join this deal because of the relationships we built in the mastermind, our hard work, dedication and our ability to bring value to the partnership. We have learned that multifamily is truly a team sport and we are really grateful for the opportunity to partner on this deal.

We are also really excited that the connections we've made have led us to become GPs in a 32 unit deal in South Carolina which just closed last week!

This is just the beginning and it's truly incredible to stand here a year later and look at all that we have accomplished.

Cheers to all who helped us along the way! (looking at you @Yosef Lee!)

What's next for us? We are working with partners on several upcoming deals. We are always looking to connect with active and passive investors who are passionate about real estate and making financial independence a reality.

Let's Make It Happen!

Javier & Amanda

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Member since 2020 · 983 posts · 1k+ votes
4y
The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.
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  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Jovany Espinoza:

    @Amanda Barker

    Hi Amanda, you mentioned in mistake #2 that owning single family is safer but multi-units or bigger units are more efficient; as a beginner, I am just starting to purchase my first property in San Antonio, Texas (single family) and I aspire to own multiple multi-unit complexes.

    I'm having a hard to figuring out how to come up with the revenue, to make multiple purchases either single family or du-plex etc..., within one year. If I am using my own money, how does one acquire so much revenue in a short time frame, to turn around and purchase another property? With the exception of cash offers, how does one purchase multiple homes,, using conventional or FHA loans in such a short time frame?

     Hey Jovany! Great question. Full disclosure we did not buy the properties I mentioned all by ourselves. These are syndicated deals with a number GP and LP partners pooling their money to purchase. It would be impossible for us to do those deals by ourselves!

    If you're looking for creative financing options, I would recommend Brandon Turner's book: Investing in Real Estate with No (and Low) Money Down. 

    I think starting out with single family is a great way to get comfortable with the process, but you will tap out of your own resources pretty quickly. On the larger deals you will very likely need to find folks to partner with or raise capital unless you find a seller who wants to give you some sweet seller financing terms. 

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Tucker Cummings:

    So inspiring and awesome to hear this! I’ve been wanting to make the transition to Multifamily and this lighting a fire under me too. Congratulations!

     Yes! Make it happen Tucker!

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Robbie Young:

    Congratulations for an excellent year.

    I would just like to say that I believe your mistake #1 of self-managing for three months was not a mistake but a fortunate accident for you. Yes it sucked but you learned a lot. There are a number of landlords who have unrealistic expectations of property managers because they have never done at least enough to deal with most problems that come up time and time again. And there are property managers that tell their landlords stories and the landlord doesn’t have enough experience to know it is b.s. How can you really do a good job of managing your manager without that background? It slowed you down? This may have been a good thing while you gained real world experience before pushing forward with more growth. There are lots of examples of companies that grew too fast and failed because of it.

    I don’t know if I would want to landlord in Seattle no matter the numbers on residential property. The appreciation may be great but their laws on evictions are not. I would probably look out of state as well.

     Really great point Robbie. I am really grateful for the lessons, even though they were painful. All part of the journey!

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Clay Boykin:

    @Account Closed What an amazing story. I admire investors that blow their goals out of the water. Most of my investors and investments come from 1-4 units/residential, which they buy in volume. I am curious to know your numbers on this deal? Maybe I missed it in the article but I would love to learn more about this!

     Thanks Clay! Let's connect - I'll shoot you a PM

  • New to Real Estate · Chicago, IL · Member since 2020 · 10 posts · 19 votes
    4y

    @Amanda Barker

    Thanks for sharing Amanda! I appreciate the information and assistance.

  • Member since 2019 · 7 posts · 3 votes
    4y

    Congratulations Amanda and Javier! You both achieved you`re goals I`m so happy for you. My question is how did you get the financing for all of the properties? Was it conventional 25% to 30% loan? The market that I`m looking to purchase my first investment property is in Cleveland as well. I currently live in San Diego County Ca. I`m looking to partner up on a possible quadruplex here in Cleveland. If that something that you and Javier might be interested please feel free to contact me thru bigger pockets and then I will give my personal contact information to you. Thank you, Dale Osborne! 

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    4y

    If you were to give 3 tips for yourself when you first started what would it be?

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Dale Osborne:

    Congratulations Amanda and Javier! You both achieved you`re goals I`m so happy for you. My question is how did you get the financing for all of the properties? Was it conventional 25% to 30% loan? The market that I`m looking to purchase my first investment property is in Cleveland as well. I currently live in San Diego County Ca. I`m looking to partner up on a possible quadruplex here in Cleveland. If that something that you and Javier might be interested please feel free to contact me thru bigger pockets and then I will give my personal contact information to you. Thank you, Dale Osborne! 

    Yes we got conventional financing with 25% down for both the bigger deals. Also - these were syndications so we had a number of LP investors contributing to the equity for the deal as well. Good luck with your journey, we love cleveland! 

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Caleb Brown:

    If you were to give 3 tips for yourself when you first started what would it be?

     Really good question Caleb!

    1 - Think bigger! Our initial strategy revolved around small stuff because it felt safe. While I think that is a great place to start, we could have gone bigger sooner I think

    2 - Hire a property manager earlier. We learned some very valuable lessons managing the properties ourselves initially but I think we wasted too much time doing so.

    3 - Think bigger! I really can't emphasize that one enough. We set some goals at the beginning of the year and we absolutely crushed them. I can't believe it. It makes me think we didn't set big enough goals!

  • Member since 2021 · 8 posts · 1 vote
    4y
    Originally posted by @Luciano A.:

    @Account Closed

    Congrats on your success. However, for any new investor coming in it is not the number of doors you own it is the cash flow that is coming as a way to measure your investment goals. Owning 50 doors and making $100 per door is not all that impressive if you can own just 10 doors making $500 per door. To the rookie, the person owning 50 doors seems to be the successful one but at the end of the day, it's how much money is hitting your bank account.  

    I give you props for moving to an area you wanted to invest in as many can't or won't do that. But as another investor, @Victor S. pointed out to becoming a GP without any experience is risky for all the LPs. But that is not your fault in being able to sell the deal to them. They (the LPs) should be doing their homework. 

    WE all look like rockstars when things are going well. It is when the market has correction the real players are still standing. I just fear how many people will be hurt as not everyone is a War Time General. Experience helps when the economy has a shift. 

    I know this sounds like a put-down directed at you but I am directing this more to those wanting to run before they can walk. Too many people read a few books, see HGTV, join groups, and think they are good to go. Everyone is an Entrupuner in today's society. Everyone wants to retire like yesterday. Everyone wants to own 100s if not 1000s of doors. I would rather own 100 doors with one or two partners than walk around saying I own 4000 doors with 800 partners. 

    Starting small is OK. Just start is what I tell people. Scaling takes time but we all want it now. WE are at what some will call the peak of the market. It's okay to take it slow and make small moves as long as you are moving and doing something to get to your number that will help you not depend on your job to pay your bills.

    Best of luck 

    Just my layman opinions. Obviously, we always want to get properties with the highest cashflow per door, but what I am always interested in is what  can I personally do with a property that is not cashflowing if I purchase the property. I think the huge difference when looking for properties to purchase is the investor's abilities to change and improve the cashflow.

    While you are correct in regards to purchasing less units if the overall cashflow is better, there is a downside to that thinking when you consider the years following the purchase of the property. If you chose 10 units because the cashflow was better at the time of purchase you need to do serious math to determine whether or not the 20 units with the lower cashflow would have beat out your 10 units big time in 1, 2, 5 or more years.

    As for going from Rockstar to bad times, I personally never met a multi-unit investor who lost money back in the 2008 crisis nor any other downturn. The only people I know who lost money were single family owners. In fact, during the 2008 crisis the vacancy rate for our rental units turned into a 3-month waiting list due to all the people walking away from their mortgages.

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y

    Just my layman opinions. Obviously, we always want to get properties with the highest cashflow per door, but what I am always interested in is what  can I personally do with a property that is not cashflowing if I purchase the property. I think the huge difference when looking for properties to purchase is the investor's abilities to change and improve the cashflow.

    While you are correct in regards to purchasing less units if the overall cashflow is better, there is a downside to that thinking when you consider the years following the purchase of the property. If you chose 10 units because the cashflow was better at the time of purchase you need to do serious math to determine whether or not the 20 units with the lower cashflow would have beat out your 10 units big time in 1, 2, 5 or more years.

    As for going from Rockstar to bad times, I personally never met a multi-unit investor who lost money back in the 2008 crisis nor any other downturn. The only people I know who lost money were single family owners. In fact, during the 2008 crisis the vacancy rate for our rental units turned into a 3-month waiting list due to all the people walking away from their mortgages.

    Always looking for the value add! Great perspective Leonard!

  • Member since 2021 · 8 posts · 1 vote
    4y

    Send me a PM information if you do another deal and would like a partner.

    I've was just starting to look at getting into a syndicated deal, but prefer to be the general partner, or a partner with a general partner, but not a limited partner. I could be serious asset as a partner of a general partner because I have extensive real estate experience and I have the experience and ability to take over any size multi-unit property and crank out a lot of cleaning and rehabbing in no time where I can make them more-desirable, increase the rents and increase the value.

    I've was a limited partner for two huge properties about 30 years ago. So, I don't need too much teaching about how syndicated deals work.

  • Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
    4y

    @Account Closed

    I agree to buying a property that you can do value add in multifamily is a great strategy. I have made a lot of money with such a strategy. I am using this current market to build multi-family from the ground up. However, what I was pointing out is how people are throwing out the number of doors they own versus the amount of cash flow they are making from their investment. The popularity of syndication has made it sexy to walk around telling people you have 500 doors but in reality, you might not be making more than someone who owns 10 doors. Buying 10 units with one partner and making decent cashflow in my opinion is better than owning 1/10th of a value add with promises of a great return on your money in year 5 of a 300 unit with 80 partners. Controlling an asset gives you the ability to create value. I am not a passive investor so I know I am biased. 

    Sure the 3-5 year projection of a high IRR at the time of the sale sounds great but I don't know what 3-5 years will look like so I am not going to bank on appreciation as my exit strategy. I would rather have a good cashflowing property in a good area.
    I personally know a handful of investor friends who lost their shirts with overleverage on their multifamily back in 2008-2010. I loved the 2008-2012 time frame as I was buying assets well under build cost. I have met tons of investors some with large portfolios that had their loans come due by local community banks. And I agree if you bought correctly you can weather a storm. I just didn't want newbies to think in terms of the number of doors rather think of the cashflow as they are building their portfolios. 

  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 716 posts · 555 votes
    4y

    Nice work @Amanda Barker, very inspiring. I just came back from the OREIA conference. Did you go to that?

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  • Member since 2021 · 8 posts · 1 vote
    4y
    Originally posted by @Luciano A.:

    @Account Closed

    I agree to buying a property that you can do value add in multifamily is a great strategy. I have made a lot of money with such a strategy. I am using this current market to build multi-family from the ground up. However, what I was pointing out is how people are throwing out the number of doors they own versus the amount of cash flow they are making from their investment. The popularity of syndication has made it sexy to walk around telling people you have 500 doors but in reality, you might not be making more than someone who owns 10 doors. Buying 10 units with one partner and making decent cashflow in my opinion is better than owning 1/10th of a value add with promises of a great return on your money in year 5 of a 300 unit with 80 partners. Controlling an asset gives you the ability to create value. I am not a passive investor so I know I am biased. 

    Sure the 3-5 year projection of a high IRR at the time of the sale sounds great but I don't know what 3-5 years will look like so I am not going to bank on appreciation as my exit strategy. I would rather have a good cashflowing property in a good area.
    I personally know a handful of investor friends who lost their shirts with overleverage on their multifamily back in 2008-2010. I loved the 2008-2012 time frame as I was buying assets well under build cost. I have met tons of investors some with large portfolios that had their loans come due by local community banks. And I agree if you bought correctly you can weather a storm. I just didn't want newbies to think in terms of the number of doors rather think of the cashflow as they are building their portfolios. 

    Thank you for clarifying that. It make a lot of sense. I missed the point in your original post. Sorry!

  • Realtor · Odessa, FL · Member since 2019 · 3 posts · 0 votes
    4y

    @Amanda Barker

    Your journey inspire me and give me motivation,

    Thank you and Congratulations to you guys!

    Actually me and my husband have some properties here in Tampa and surrounding areas. He owns a property management company and I'm Realtor. We also are working hard to get that dream. We are definitely interested, let us know⭐

    Luisa Londono

  • Rental Property Investor · Houston, TX · Member since 2019 · 184 posts · 147 votes
    4y

    @Amanda Barker very inspiring story. I have a similar story. This is technically my first year of committing to RE investing and to date I have been able to put 21 units under my portfolio plus a short term rental. I was also a GP on a 88 unit and an LP on a 7 unit. I’m trying to close something else before the end of the year. Next year I have way bigger goals. I’m very curious about your mastermind group if you could share the info I will truly appreciate it.

  • Investor · Austin, TX · Member since 2021 · 96 posts · 61 votes
    4y

    Well done!!! Truly inspirational

  • Investor · Greenville, SC · Member since 2017 · 69 posts · 15 votes
    4y

    @Amanda Barker

    Where in sc is your recent buy?

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Alex Ramirez:

    @Amanda Barker very inspiring story. I have a similar story. This is technically my first year of committing to RE investing and to date I have been able to put 21 units under my portfolio plus a short term rental. I was also a GP on a 88 unit and an LP on a 7 unit. I’m trying to close something else before the end of the year. Next year I have way bigger goals. I’m very curious about your mastermind group if you could share the info I will truly appreciate it.

     Hey Alex - I'll PM you!

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Luisa Londono:

    @Amanda Barker

    Your journey inspire me and give me motivation,

    Thank you and Congratulations to you guys!

    Actually me and my husband have some properties here in Tampa and surrounding areas. He owns a property management company and I'm Realtor. We also are working hard to get that dream. We are definitely interested, let us know⭐

    Luisa Londono

    I'd love that Luisa! I'll PM you!

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Stephen Keighery:

    Nice work @Amanda Barker, very inspiring. I just came back from the OREIA conference. Did you go to that?

     We didn't make it that unfortunately. How was it?!

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Hung Nguyen:

    @Amanda Barker

    Where in sc is your recent buy?

     32 Units in Summerville and a project we are about to close on in Columbia! Are you invested in SC?

  • Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Brian Nally:

    Well done!!! Truly inspirational

     Thanks Brian! Appreciate the support!

  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 716 posts · 555 votes
    4y

    Amazing. I find that any events with Pete Fortunato are a must attend. Not just because he is a complete real estate genius but because the people that follow him go back again and again. This means that the attendees are very active and successful and just networking with them is worth the price of admission. 

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