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All Forum Posts by: Ran-D Baldwin

Ran-D Baldwin has started 3 posts and replied 12 times.

Quote from @Austin Wyrick:

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


 Hey Austin! 2 are digital businesses and one is a retail service-based business. The owner of the current building I'm in wants 7M so might not be something to start with. However, I was looking to maybe purchase a building and expand to a second location. 

Quote from @Richard Purdy:

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


 I'd ask how you got it? If it was through some type of business or value creation I'd look at ways to do it again. If you spent all of your time on the thing that generated the $60k you most likely would be able to do it again and faster. Your knowledge is the multiplier in your investing.  

Otherwise doubling or tripling your money in an industry you don't understand is unlikely. 

Quote from @Zachary Ware:

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. 


 This is helpful, thank you. 

Quote from @Justin Moy:

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


 Since I'm just starting, setting up the teams and processes will be a bit challenging. Any suggestions to bridge the gap of knowledge? 

This is part of the reason I was asking if the knowledge is transferable, I know I can handle a SFH investment strategy with little help but I will need to put a good team in place for multi-family. Unlikely to be able to do that with 0 experience.

Someone mentioned 4-6 units which might be a good middle ground. However, when jumping from 4 units to say 30 units the property is valued like a business so I'd the acquisition changes drastically.

Quote from @Ned Carey:

@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.


Interesting I will keep in mind the change in market cycles. I'd assume larger multifamily is sold like a business and SFH is sold based on the market conditions?

Quote from @Bjorn Ahlblad:

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.


 Ok, thank you. The scalability is definitely something that interests me as I'd like to delegate the majority of management. 

Quote from @Nathan Gesner:
Quote from @Ran-D Baldwin:

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. 


Hi Nathan,

The reason I'm going for Cashflow is because, in my experience, it's what fuels the investment engine and allows compounding to take place much faster. For the financial goals I have I feel like this is a must. I would be aiming for an 8% CoC, not including appreciation and equity paydown.

I understand that this might not be possible. I'm currently in a discovery phase, trying to determine if I should start a real estate investment company to channel my business's cash flow or start a company that acquires and develops existing businesses.

I appreciate your insight and suggestions they are helpful as I better understand the opportunities. 

Quote from @Joe S.:

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


 Hi Joe, 

I have a decent-sized budget for expansion baked into the business expenses. The 30k is after those expenses. 

I currently make around $30k-50k Month Net and am wondering if it makes sense to start with Single Family and move up to Multifamily or just start in multifamily? Does the knowledge from single-family investing translate to multifamily? 

If I'm investing 20-40k per month in single-family I'd assume deal flow becomes the bottleneck of the investment engine also the logistics seem like they would get a little muddy whereas investing in multifamily all the doors/management are localized. 

Quote from @Jenni Utz:

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. 

Goal is overall 1MM net between businesses/RE 
Passive isn't the goal, cashflow that can be reinvested is.
Involvement will be whatever is needed with the goal of always replacing myself as the company grows. 

 I don't know if it makes sense to start with multifamily to start off with or work up toward it. I'd assume deal flow becomes the bottleneck of the investment engine and if I'm investing 20-50k a month into single-family homes the logistics seem like they would get a little muddy whereas investing in multifamily all the doors/management are localized.

This is a current blockage in the goal setting as I don't know how much knowledge transfers from single-family to multifamily investing.