I’ve said it before, and I’ll say it again … unit count is a HORRIBLE metric of wealth/success in a real estate portfolio.
The Best Way to Get Started with Real Estate Investing
This is why when people ask me how to get started with real estate investing, I always tell them this: Start with ONE rental property.
Then …
- Learn how to manage it.
- Learn how to market it, fill it, and collect the rent on time.
- Learn what vacancy, delinquency, unit turns, capital expenditures, and routine repairs and maintenance are.
Let me fill you in on a little secret …
Buying real estate is easy!
Anyone can throw money at a deal.
Or, make a fancy webinar and raise a few bucks to go buy an apartment.
BUT …
Management and operations is where the MILLIONS are made when it comes to real estate investing.
You can be the best capital raiser in the world. But … if you don’t know operations and management and how to bring a deal FULL CYCLE … you won’t last long.
My wife and I have been able to do 4 (in process with our 5th) 100% cash out refinances in multifamily because of OPERATIONS.
This is why I tell you to KEEP the management and operations IN HOUSE.
Andrea and I struggled to get past 87 units when we had 3rd party property managers running it. The expenses were way too high, and the income was inconsistent.
A 3rd party property manager will NEVER take care of the business the way you will … Because it’s not THEIR MONEY… it’s YOURS!
Once we fired them, and took the management over in house, we were able to scale to 259 units with HIGHER profit margins, while building a team around our business.
But, we started with ONE rental property in 2020. We learned the ropes and started small.
Now, we own a 100 unit, a 56 unit, a 42 unit, and several 7-16 small multifamily deals.
The Secret to Real Estate Investing Success
Don’t knock starting small.
Don’t worry about growing fast.
Remember … Revenue feeds the EGO but PROFIT feeds the family.
Focus on SUSTAINABLE growth through the right PEOPLE and PROCESSES.
Focus on PERMANENT growth.
Fast money is fickle money.
True wealth from real estate can last GENERATIONS if you build it right.
If YOU are ready to get started with real estate investing, subscribe to my YouTube channel.
There, I share real estate investing tips, explain my Multifamily BRRRR Strategy, and show you exactly how my wife and I have become successful real estate investors in the Detroit, MI area. See you there!
