I had a conversation with an investor recently that I really enjoyed.
Not too long ago, he was focused on getting one deal across the finish line. Now he's looking at how to keep multiple projects moving without having all of his cash tied up in one property.
What changed wasn't necessarily the size of the deals. It was how he started thinking about capital.
Instead of asking, "How cheaply can I finance this property?" the question became, "How can I structure this deal so I'm ready when the next opportunity shows up?"
That's a very different conversation, and I've noticed it more and more with investors who are starting to scale. For those of you who went from doing one property at a time to multiple deals, what was the biggest change you made that allowed you to scale?
For me it was realizing that tying up all my cash in one deal meant I'd miss the next one when it popped up. Down here in Florida tax deed auctions, properties move fast and you can't be scrambling to free up capital. Now I structure things so I've got reserves ready to deploy when good deals show up unexpectedly.
That's exactly the shift I was talking about, Igor. Once opportunities can show up unexpectedly, keeping capital available becomes almost as important as the return on the deal itself.
Tax deed auctions make that even more interesting because of how quickly you have to move. Are you mainly using your own cash for the acquisitions and then financing afterward, or do you keep outside capital available as well?