All Forum Posts by: Austin Fowler
Austin Fowler has started 54 posts and replied 241 times.
Post: If you had $10M, how would you invest it?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Alan F.:
Quote from @Austin Fowler:
Quote from @James Hamling:
Quote from @Austin Fowler:
Quote from @V.G Jason:
Quote from @Austin Fowler:
Quote from @V.G Jason:
Quote from @Gregory Schwartz:
Take $20M, pick up 50 single-family homes at ~$400k each. Rent them at $3k, net about $2k per door. That’s $100k/month in cash flow, plus appreciation. Low-maintenance properties, low-drama tenants, simple portfolio. It’s not flashy, but it’s clean, seats enough to self mange (for the REPS tax benefits), and lets you live well without headaches
$3k at $400k is hard, but possible. Have some higher, some lower, but mainly higher. You'll still have tenant issues, maintenance, etc. To think it'll be all roses is just naive. Fortunately have PMs, AI agents, etc.
With $10 mil continue to be focused on properties in Austin, and Phoenix. Doesn't change for me on the personal portfolio.
$1mil folks worry about protecting their wealth. $10mil folks focus on growing their wealth. But to get to the latter, you usually have to go through the former. Majority of this board shouldn't be focused on this problem though. Think it's just to sniff out potential investors for OPs fund.
Hi V.G., the goal is to encourage actual real estate experts, actual people that operate at this scale, to share techniques that work at this scale and help educate people to head in that direction as well. If you anyone wants to operate at this scale, they need to focus on learning techniques that work at this scale. When it comes to building wealth, you can waste decades of your life learning labor intensive techniques and building a portfolio that simply doesn't scale.
I "operate" with more "scale" than 99% of BP.
And I'm telling you 99% needs to stop being obsessed with scale. And start being obsessed with diligence.
You're getting it right from the horse's mouth, yet still want to push this point. It's missing the forest for the trees. You're trying to scale by acquiring outside capital, I get it. Go do that in a proper form.
Totally agree with a need for everyone to be obsessed with due diligence. For example, when I acquire an asset, it is a month+ long process involving hundreds of people doing group due diligence trying to find holes in the deal and learning more about it before anyone invests. It's an approach anyone can use. I disagree with the philosophy that there are some special people that use special techniques that are amazing and can't even be explained, and then a majority of average people that should stick with average techniques that don't scale. There are good investment techniques that anyone can use that are scalable. One example of such a technique is doing extensive group due diligence on passive multifamily. Another is simply cash or an index fund, neither of which chew up your time and scale arbitrarily. This thread is all about identifying scalable techniques that anyone can use. Or just interesting techniques that people have used at scale. Working together as a community to educate each other.
Scalability is easily and readily available for the vast majority, scalability is not the issue for most.
The issue for most is how limited their investment capitol is, the massive return expectations being sought, over an exceptionally short time-span.
Many seeking parabolic, unrealistic, compounding returns. Which are not really returns, as so many are actually seeking full income replacement via the "investing".
To boot, adding in the riders of things such as "passive", "low risk" and "certain"......
To be fair Austin, you as a syndicator are hacking the scalability via syndication, O.P.M.. Most are not capable, willing or interested in raising O.P.M. to scale and thus a natural limiter of there investible capitol.
Remove your LP capitol, you would not be at the size you are, correct? No syndicator would. So it's not fair to pretend it's the deals that make scalability alone. It is possible but it is very rare, exceptional and non-ordinary for such.
For the vast majority who are measuring their investible capitol in the tens of thousands, while balancing a FT career, a family, life in general, yes it is rare skills and talents to find, analyze and execute on profitable investments at any kind of regularized interval. And in those early steps, the outlay of capitol far outstrips the returns for years or decades limiting any reasonable expectation of scalability.
In my experience the primary focus for most is not on scalability but on certainty to achieve financial freedom. Which is often defined as a passive income about matching to current active income levels.
For most the only scalability that matters is how to get to their ends. I often see a correlation that this is meet for most between 20-40 SFR's.
For many, scaling beyond that is just added work, and no longer "freedom" as was the entire intent from start, financial freedom, not an occupation change.
Hi V.G.,
> Scalability is easily and readily available for the vast majority, scalability is not the issue for most.
When it comes to scalability, I set the bar high. I want to be able to handle a very great deal of capital deployed in a lot of assets while basically on holiday. Using this perspective, to my eyes many people spend a great deal of time working real estate investing techniques that are not scalable. Passive multifamily is the most scalable technique I currently use, and I could use my exact due diligence process to easily handle $100M without changing how I operate. Just bigger checks into the deals I find.
> In my case, The issue for most is how limited their investment capitol is, the massive return expectations being sought, over an exceptionally short time-span.
So how about we focus on discussing how to solve capital limitations in a way that is doable by anyone?
> Many seeking parabolic, unrealistic, compounding returns. Which are not really returns, as so many are actually seeking full income replacement via the "investing".
I don’t work a W-2 anymore. My investing covers all of my expenses and was sufficient to add $2.5M to my net worth over the last 12 months. Full income replacement is definitely achievable.
> To boot, adding in the riders of things such as "passive", "low risk" and "certain"......
> To be fair Austin, you as a syndicator are hacking the scalability via syndication, O.P.M..
I don’t run syndications. I do invest in other people syndications. I have no desire to be a GP on a multifamily syndication with all of the responsibilities and duties that come with it.
> Most are not capable, willing or interested in raising O.P.M. to scale and thus a natural limiter of there investible capitol.
Here I disagree. I think most people just don’t know how to go about it. I have helped hundreds of people learn how to raise capital for their own investing. I have helped quite a number of people start their own SEC registered managed funds. And there is an awful lot you can do with a lot less than this. It’s knowledge that people need.
> Remove your LP capitol, you would not be at the size you are, correct?
Correct.
> No syndicator would. So it's not fair to pretend it's the deals that make scalability alone.
The multifamily deals I focus on are not mine, and from a return point of view are nothing off the charts, the general target is around 20% per annum. And no, it’s not the deal that gets you to huge scale, it is definitely learning how to raise capital. And that is something anyone can learn, and the only way to get to great wealth in a lifetime.
> It is possible but it is very rare, exceptional and non-ordinary for such.
Agreed it is not about the deal, it is about learning how to access capital efficiently. And that is a teachable skill.
> For the vast majority who are measuring their investible capitol in the tens of thousands, while balancing a FT career, a family, life in general, yes it is rare skills and talents to find, analyze and execute on profitable investments at any kind of regularized interval. And in those early steps, the outlay of capitol far outstrips the returns for years or decades limiting any reasonable expectation of scalability.
So you share the load. You don’t try to do all of the deal due diligence yourself. You do it in a group where some (even most) people can even passively ride on the due diligence of others. You don’t try to reinvent the wheel when it comes to learning how to raise capital, you leverage free tools that already exist.
> In my experience the primary focus for most is not on scalability but on certainty to achieve financial freedom. Which is often defined as a passive income about matching to current active income levels.
Financial freedom requires passive investments at scale. Speaking from experience.
> For most the only scalability that matters is how to get to their ends. I often see a correlation that this is meet for most between 20-40 SFR's.
I would argue that self managing so many single-family rentals is a burden. I’m in that range with managed rentals, and I would say that this is definitely not enough for the level of financial freedom I wish to have, even if they were all paid off, which they aren’t.
> For many, scaling beyond that is just added work, and no longer "freedom" as was the entire intent from start, financial freedom, not an occupation change.
Agreed, but to say the same thing a different way, there are more profitable and more passive investments than single-family long-term rentals.
Then share those pearls of wisdom on the teachable skills of how to access capital, here on the forum.
Shared in the classifieds. The info can't go here.
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Chris Watson:
Quote from @Austin Fowler:
Quote from @Chris Watson:
Honestly, I am late to see this post, because I have been too busy touring properties and working numbers in the Smokys and Emerald Coast markets this past week. After going through the over 2k Smokys listings there were only about 15 I would consider touring because my buy box is very specific (location, quality, uniqueness). In the Smokys I have decided to buy lots and build (yet again) my more unique properties. Put an offer on one lot yesterday 25% below list and have my builder looking at three more lots today. Two of these three lots are not on the market but I cold called owners after driving by Saturday.
On the Emerald Coast the numbers are tight with interest rates and property taxes (insurance is not as bad as people make it). Today I will put an offer in on one beachfront property 10% below asking as that is the only way to make numbers work. I went through yesterday for the Emerald Coast market and identified potential off market properties and started cold calling. Hopefully, one of these cold calls will pay off, but we shall see.
So if you are looking to buy be specific on your buy box and your ROI and then make offers based on that alone. Keep emotions out of it. There are good deals and don't be afraid to put in a low offer if that is the only way to make numbers work.
What does your current portfolio consist of? How quickly are you looking to expand it? To what scale do you wish to expand it? What limits your rate of growth? Deal flow or capital?
I have 9 currently and seek to have between 13 or 14 by May. I have a few currently under contract. Honestly the only thing that limits my growth is me. I am content so I took 12 months off of acquisitions and building. I got a little bored so now I want to add properties. Adding properties is more of a hobby than a goal or sense of accomplishment/purpose/identity. I also believe this to be a good time to get some great buys. It is hard to resist some clearance pricing on properties:) There are fire sales out there...you just have to put the offer in.
How do you fund/afford your acquisitions?
Post: Learn how to raise capital for free with free tools
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Dear all, I'm financially free with assets on three continents including 16 states of the United States, and my focus these days is on helping other people achieve great success. I've put together a 16 step action plan for anyone that wants to copy what I have done. The information is free, as are the tools I've built. Ask me anything.
Post: If you had $10M, how would you invest it?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Alan F.:
Quote from @Austin Fowler:
Quote from @James Hamling:
Quote from @Austin Fowler:
Quote from @V.G Jason:
Quote from @Austin Fowler:
Quote from @V.G Jason:
Quote from @Gregory Schwartz:
Take $20M, pick up 50 single-family homes at ~$400k each. Rent them at $3k, net about $2k per door. That’s $100k/month in cash flow, plus appreciation. Low-maintenance properties, low-drama tenants, simple portfolio. It’s not flashy, but it’s clean, seats enough to self mange (for the REPS tax benefits), and lets you live well without headaches
$3k at $400k is hard, but possible. Have some higher, some lower, but mainly higher. You'll still have tenant issues, maintenance, etc. To think it'll be all roses is just naive. Fortunately have PMs, AI agents, etc.
With $10 mil continue to be focused on properties in Austin, and Phoenix. Doesn't change for me on the personal portfolio.
$1mil folks worry about protecting their wealth. $10mil folks focus on growing their wealth. But to get to the latter, you usually have to go through the former. Majority of this board shouldn't be focused on this problem though. Think it's just to sniff out potential investors for OPs fund.
Hi V.G., the goal is to encourage actual real estate experts, actual people that operate at this scale, to share techniques that work at this scale and help educate people to head in that direction as well. If you anyone wants to operate at this scale, they need to focus on learning techniques that work at this scale. When it comes to building wealth, you can waste decades of your life learning labor intensive techniques and building a portfolio that simply doesn't scale.
I "operate" with more "scale" than 99% of BP.
And I'm telling you 99% needs to stop being obsessed with scale. And start being obsessed with diligence.
You're getting it right from the horse's mouth, yet still want to push this point. It's missing the forest for the trees. You're trying to scale by acquiring outside capital, I get it. Go do that in a proper form.
Totally agree with a need for everyone to be obsessed with due diligence. For example, when I acquire an asset, it is a month+ long process involving hundreds of people doing group due diligence trying to find holes in the deal and learning more about it before anyone invests. It's an approach anyone can use. I disagree with the philosophy that there are some special people that use special techniques that are amazing and can't even be explained, and then a majority of average people that should stick with average techniques that don't scale. There are good investment techniques that anyone can use that are scalable. One example of such a technique is doing extensive group due diligence on passive multifamily. Another is simply cash or an index fund, neither of which chew up your time and scale arbitrarily. This thread is all about identifying scalable techniques that anyone can use. Or just interesting techniques that people have used at scale. Working together as a community to educate each other.
Scalability is easily and readily available for the vast majority, scalability is not the issue for most.
The issue for most is how limited their investment capitol is, the massive return expectations being sought, over an exceptionally short time-span.
Many seeking parabolic, unrealistic, compounding returns. Which are not really returns, as so many are actually seeking full income replacement via the "investing".
To boot, adding in the riders of things such as "passive", "low risk" and "certain"......
To be fair Austin, you as a syndicator are hacking the scalability via syndication, O.P.M.. Most are not capable, willing or interested in raising O.P.M. to scale and thus a natural limiter of there investible capitol.
Remove your LP capitol, you would not be at the size you are, correct? No syndicator would. So it's not fair to pretend it's the deals that make scalability alone. It is possible but it is very rare, exceptional and non-ordinary for such.
For the vast majority who are measuring their investible capitol in the tens of thousands, while balancing a FT career, a family, life in general, yes it is rare skills and talents to find, analyze and execute on profitable investments at any kind of regularized interval. And in those early steps, the outlay of capitol far outstrips the returns for years or decades limiting any reasonable expectation of scalability.
In my experience the primary focus for most is not on scalability but on certainty to achieve financial freedom. Which is often defined as a passive income about matching to current active income levels.
For most the only scalability that matters is how to get to their ends. I often see a correlation that this is meet for most between 20-40 SFR's.
For many, scaling beyond that is just added work, and no longer "freedom" as was the entire intent from start, financial freedom, not an occupation change.
Hi V.G.,
> Scalability is easily and readily available for the vast majority, scalability is not the issue for most.
When it comes to scalability, I set the bar high. I want to be able to handle a very great deal of capital deployed in a lot of assets while basically on holiday. Using this perspective, to my eyes many people spend a great deal of time working real estate investing techniques that are not scalable. Passive multifamily is the most scalable technique I currently use, and I could use my exact due diligence process to easily handle $100M without changing how I operate. Just bigger checks into the deals I find.
> In my case, The issue for most is how limited their investment capitol is, the massive return expectations being sought, over an exceptionally short time-span.
So how about we focus on discussing how to solve capital limitations in a way that is doable by anyone?
> Many seeking parabolic, unrealistic, compounding returns. Which are not really returns, as so many are actually seeking full income replacement via the "investing".
I don’t work a W-2 anymore. My investing covers all of my expenses and was sufficient to add $2.5M to my net worth over the last 12 months. Full income replacement is definitely achievable.
> To boot, adding in the riders of things such as "passive", "low risk" and "certain"......
> To be fair Austin, you as a syndicator are hacking the scalability via syndication, O.P.M..
I don’t run syndications. I do invest in other people syndications. I have no desire to be a GP on a multifamily syndication with all of the responsibilities and duties that come with it.
> Most are not capable, willing or interested in raising O.P.M. to scale and thus a natural limiter of there investible capitol.
Here I disagree. I think most people just don’t know how to go about it. I have helped hundreds of people learn how to raise capital for their own investing. I have helped quite a number of people start their own SEC registered managed funds. And there is an awful lot you can do with a lot less than this. It’s knowledge that people need.
> Remove your LP capitol, you would not be at the size you are, correct?
Correct.
> No syndicator would. So it's not fair to pretend it's the deals that make scalability alone.
The multifamily deals I focus on are not mine, and from a return point of view are nothing off the charts, the general target is around 20% per annum. And no, it’s not the deal that gets you to huge scale, it is definitely learning how to raise capital. And that is something anyone can learn, and the only way to get to great wealth in a lifetime.
> It is possible but it is very rare, exceptional and non-ordinary for such.
Agreed it is not about the deal, it is about learning how to access capital efficiently. And that is a teachable skill.
> For the vast majority who are measuring their investible capitol in the tens of thousands, while balancing a FT career, a family, life in general, yes it is rare skills and talents to find, analyze and execute on profitable investments at any kind of regularized interval. And in those early steps, the outlay of capitol far outstrips the returns for years or decades limiting any reasonable expectation of scalability.
So you share the load. You don’t try to do all of the deal due diligence yourself. You do it in a group where some (even most) people can even passively ride on the due diligence of others. You don’t try to reinvent the wheel when it comes to learning how to raise capital, you leverage free tools that already exist.
> In my experience the primary focus for most is not on scalability but on certainty to achieve financial freedom. Which is often defined as a passive income about matching to current active income levels.
Financial freedom requires passive investments at scale. Speaking from experience.
> For most the only scalability that matters is how to get to their ends. I often see a correlation that this is meet for most between 20-40 SFR's.
I would argue that self managing so many single-family rentals is a burden. I’m in that range with managed rentals, and I would say that this is definitely not enough for the level of financial freedom I wish to have, even if they were all paid off, which they aren’t.
> For many, scaling beyond that is just added work, and no longer "freedom" as was the entire intent from start, financial freedom, not an occupation change.
Agreed, but to say the same thing a different way, there are more profitable and more passive investments than single-family long-term rentals.
Then share those pearls of wisdom on the teachable skills of how to access capital, here on the forum.
Would love to, but don't know how to do so without upsetting the moderators. A lot of the techniques rely on tools I've built that are shared freely.
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Rosston Smith:
Quote from @Austin Fowler:
Quote from @Rosston Smith:
Quote from @Austin Fowler:
Quote from @Rosston Smith:
My company is currently expanding our cohosting model.
Isn’t cohosting similar to property management where you do not own the underlying asset? Does your company own short-term rentals?
Yes that is correct, we do not own the underlying homes, we assist with the operations of the owners business.
Are any of your owners on BP? Would love to hear their thoughts on expansion in this thread.
Yes sir I am an owner. We're continuing to grow, primarily in Middle GA & the greater phoenix area. At 30 SFH's and looking to scale to 100 within the next two years
That's awesome. To be clear, are the numbers you quoted for your management company? What kind of growth are you looking to see in your personal portfolio?
Post: If you had $10M, how would you invest it?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Josh Lewer:
@Austin Fowler good question - I'd park it in S&P index funds or total market while looking for real estate (commercial).
What kind of commercial real estate do you have experience in? What more specifically would you be looking to acquire?
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Rosston Smith:
Quote from @Austin Fowler:
Quote from @Rosston Smith:
My company is currently expanding our cohosting model.
Isn’t cohosting similar to property management where you do not own the underlying asset? Does your company own short-term rentals?
Yes that is correct, we do not own the underlying homes, we assist with the operations of the owners business.
Are any of your owners on BP? Would love to hear their thoughts on expansion in this thread.
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Sameul Ahsan:
I am a STR property manager. Grew from 7 to 21 in 6 months. There are opportunities around you. 1. Find STR lists 2. Get it skip traced 3. Hire callers 4. Walk the property 5. Close
The first 3 steps can be done with VAs.
Grew from 7 to 21 personally owned short-term rentals or grew your management portfolio by this amount?
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @Chris Watson:
Honestly, I am late to see this post, because I have been too busy touring properties and working numbers in the Smokys and Emerald Coast markets this past week. After going through the over 2k Smokys listings there were only about 15 I would consider touring because my buy box is very specific (location, quality, uniqueness). In the Smokys I have decided to buy lots and build (yet again) my more unique properties. Put an offer on one lot yesterday 25% below list and have my builder looking at three more lots today. Two of these three lots are not on the market but I cold called owners after driving by Saturday.
On the Emerald Coast the numbers are tight with interest rates and property taxes (insurance is not as bad as people make it). Today I will put an offer in on one beachfront property 10% below asking as that is the only way to make numbers work. I went through yesterday for the Emerald Coast market and identified potential off market properties and started cold calling. Hopefully, one of these cold calls will pay off, but we shall see.
So if you are looking to buy be specific on your buy box and your ROI and then make offers based on that alone. Keep emotions out of it. There are good deals and don't be afraid to put in a low offer if that is the only way to make numbers work.
What does your current portfolio consist of? How quickly are you looking to expand it? To what scale do you wish to expand it? What limits your rate of growth? Deal flow or capital?
Post: Is anyone still expanding the portfolio of STRs?
- Investor
- Reseda, CA
- Posts 274
- Votes 139
Quote from @James Carlson:
The right STR property is always a good buy.
The short-term rental market, at least here in Colorado, has birfurcated. You either go:
-- Small and unique couples getaway. Think cool A-frame with awesome amenities.
-- 5br+ vacation rental for big groups.
The good-enough but bland 3br cabin just doesn't cut it anymore. My two cents, at least.
Are you personally seeing and buying quality short-term rentals at the moment? Or building them from broken properties?