All Forum Posts by: Ran-D Baldwin

Are the properties your businesses use owned or leased? If not owned start there it cuts costs and can grow the value of your business. After that then start with investment properties I think multi family is the best way to go due to multiple sources of income. Hope this helps

I just want to make as much money as possible at this stage of my life. I have 60k. What’s some ways I can double or triple it within a year or so? I’m specifically asking how to maximize my return within the field of real estate with the money I have right now. Should I buy a multifamily and rent it out? Continue wholesaling? Looking for some ideas

Considering the amount of capital you have available to invest, starting directly with multifamily properties could be a favorable option. With a monthly income of 30-50k, you may even have the opportunity to participate in multifamily syndications, gaining valuable insights from the inside.

If you prefer a more hands-on approach, starting with single-family properties can provide a solid foundation in real estate investing fundamentals. While there will be key differences in aspects such as financing and property management, the knowledge and experience gained from single-family investing can be valuable when transitioning to multifamily investments. Though the management and financing can be quite different on a multifamily property, the foundational knowledge/experience will be transferable. 

Alternatively, starting with a property size between 4-10 units could offer a middle ground, allowing you to experience some benefits of both large multifamily and single-family investments. This size offers the opportunity to learn about and experience of managing multiple units, benefit from economies of scale, exploring financing options, and potentially considering partnerships. 

The operations will be relatively the same depending on the size of the multifamily. Once you get into on site staffing things change a bit, but nothing any competent investor who is willing to learn wouldn't be able to handle. 

If you're looking to aggressively push out that much cash then I'd likely think of a few things: 

1. Get acquisitions teams/processes. 

2. Expand into other peoples deals as a passive investor (syndications, funds, private money, debt funds...)

3. Network a ton with wholesalers or flippers depending on your strategy

As you mentioned I think deal flow will be your biggest obstacle and relying on the MLS to spend that much will probably be your biggest challenge

@Ran-D Baldwin some, probably most,  of the knowledge is transferanbl but there are definitely diferences. There is a difference between small muti family and large muti family. Larger mutifamily has a lot more due dillegence and other issues. 

I would say if you have the moey to scall quickly then multi family is the better choice. However not long ago in my market SFH gave a much better return. You need to be aware of what is going on in each market and where you are in market cycles to make the best decisions.

The knowledge-underwriting, tenant screening, legal etc applies to MF and SFR and the knowledge is transferable. MF loans and loan process are different. MF and apartments provide economies of scale when all your tenants are under the same roof.

I have a 12 unit that is not hard to manage and is very profitable. My duplexes are good too, but more work/unit. Fortunately investors can pretty much decide what segment they choose to partake in.

You make $30,000 a month. Why are you concerned with cash flow? If you only buy property that cash flows, you'll be competing with almost every other investor out there and it will be difficult to find deals.

You can afford what most can't. Buy nice houses in nice neighborhoods that will continue to appreciate. Make sure each home can pay for itself (mortgage, taxes, insurance, maintenance, PM, and some set aside for capex). Even if a property doesn't cash flow today, it probably will in 3-5 years as rents go up. In 30 years you will own them outright and they'll cash flow like nobody's business. 

What’s your plan for growing your other businesses if you take all the cash flow and put it somewhere else?

I love the amount of thought you have put behind your analysis. I would suggest doing the same thing in goal and vision planning you have done with your company and do that for real estate investing. How much passive money are you looking to make investing? How many houses/properties will it take to get to that goal? How much involvement are you looking to have? If the answer is little/none, you should spend the majority of your time creating your RE Dream team. A few of the key players would be a Realtor who specializes in Investment RE, Mortgage lender, Property Manager, Handyman/Contractor. Once you have created the Dream team, they will be able to help navigate each step and guide you along the process.