All Forum Posts by: Mike Messersmith

you could also consider selling a few of the properties when you get up against the 10 loan conventional limit and use a 1031 exchange to trade into a different type of property or asset class.  For instance, selling 3 $100k duplexes to put the down payment on a 20+ unit complex.  Saves you the taxes, gets you into a different investment scale, and opens up those three slots again to fill with new properties.

@Jacob Nunn - sure thing - couple additional adds:

 - like the idea of being smart on getting rolling - you can never pay retail or above pricing and be a super successful investor.  if your local area is super competitive, might be best to adapt an alternate strategy until you can invest at better value.

 - on portfolio loan strategy - great BP blog post here:  https://www.biggerpockets.com/renewsblog/2015/04/0...

Thought this might be interesting for you based on the longer term vision you have.  If you are thinking about the long term business plan, thinking about how to build bigger wealth through the aggregation of your assets and using that leverage to get bigger, faster might be a good idea.  You will also run up against some of the limits of conventional lending when you get to ~10 properties and commercial portfolio lending might be a way around that.  Good to think about and put away as a followup now as you get rolling.

Good luck!

hey @Jacob Nunn - like a lot of aspects of the plan - sounds like you have been busy on soaking up all the knowledge.

two thoughts from my POV for what it is worth:

1 - would be careful on tying up too much cash in the distressed land aspect. Would be great to clear some capital if you had a good exit strategy there, but you might be able to get going on the primary goal even faster if you could go with a low money down approach like an FHA Loan or House Hack. Want to avoid potential pitfalls in the overall journey before you even get started.

2 - love the idea of water falling all your profits and cash flow into future purchases and down payments.  If you are disciplined, you can build a great portfolio over time.  You might want to consider investigating ability to get a portfolio loan on revised assessed value with a commercial lender or try a 1031 exchange on some of your initial properties to be able to accelerate your plan as you get into years 5+ of the journey.

good luck!