I’m buying $3-4m of private real estate every month.
But I didn’t start out with money and I didn’t start at this level. Starting “big” is often a bad idea. I started small and worked my way up.
Here’s how I did it - to model for your own empire:
But I didn’t start out with money and I didn’t start at this level. Starting “big” is often a bad idea. I started small and worked my way up.
Here’s how I did it - to model for your own empire:
🏆 You only need one deal
A lot of people overcomplicate it too much. You don’t need 10 deals — you need one deal. One deal under your belt and THEN you can roll the momentum from that into 2, 3, etc...
A lot of people overcomplicate it too much. You don’t need 10 deals — you need one deal. One deal under your belt and THEN you can roll the momentum from that into 2, 3, etc...
🏆 My first deal was bad
A small 1800 sf place in Alabama. I thought the rehab would be $25k and it ended up being $40k👎 I purchased for $80k and thought it would be worth $150k, but it wasn’t.. it was worth $120k 👎 all in all I lost about $5k on the deal.
A small 1800 sf place in Alabama. I thought the rehab would be $25k and it ended up being $40k👎 I purchased for $80k and thought it would be worth $150k, but it wasn’t.. it was worth $120k 👎 all in all I lost about $5k on the deal.
🏆 Better to go slow, and partner up to find the RIGHT deal
Learning from my first deal, it would’ve been better to do a deal WITH someone who had experience... If I would’ve not rushed through it and even shared part of the profits, I wouldn’t have lost $.
Learning from my first deal, it would’ve been better to do a deal WITH someone who had experience... If I would’ve not rushed through it and even shared part of the profits, I wouldn’t have lost $.
🏆 Invest into good property management
I’d rather pay 10% for good property management than 7% for average property management. We cut some corners in the beginning and ended up losing great renters because our PM didn’t take care of them. Lesson learned.
I’d rather pay 10% for good property management than 7% for average property management. We cut some corners in the beginning and ended up losing great renters because our PM didn’t take care of them. Lesson learned.
🏆 HELOC the first deal after 1 yr, then do it again
If you follow the steps here you will have a winner... and that means #appreciation. After year 1, first lien HELOC the deal and use (a) 50% of the cashflow from the year and (b) equity to put down on another.
If you follow the steps here you will have a winner... and that means #appreciation. After year 1, first lien HELOC the deal and use (a) 50% of the cashflow from the year and (b) equity to put down on another.
🏆 Remember my previous thread — don’t go over 70% LTV on new deals
If you maintain a 30% down payment you should have room to get into a new deal without over leveraging... don’t violate this because banks don’t like it. DSCR needs to stay about 1.3 at all times.
If you maintain a 30% down payment you should have room to get into a new deal without over leveraging... don’t violate this because banks don’t like it. DSCR needs to stay about 1.3 at all times.
🏆 Keep going...
My first year I did 2 deals
One good, one not good... BUT - my second year I did 30 deals. My third year I did over 100 deals. Start small, get good at it, partner up if you need to and then grow once you know the rules!
My first year I did 2 deals
One good, one not good... BUT - my second year I did 30 deals. My third year I did over 100 deals. Start small, get good at it, partner up if you need to and then grow once you know the rules!
🏆 BONUS: too many people quit if it doesn’t work the first time
My first deal didn’t work and I didn’t make any money but I didn’t give up. I just used what I learned to do another deal and that one made me money. Don’t give up — or else you will pay the cost for nothing.
My first deal didn’t work and I didn’t make any money but I didn’t give up. I just used what I learned to do another deal and that one made me money. Don’t give up — or else you will pay the cost for nothing.
Follow @taylorawelch for more and sign up for brand new training letter on topics like wealth, currency, real estate and markets:
taylorawelch.com/letter
taylorawelch.com/letter
• • •
Missing some Tweet in this thread? You can try to
force a refresh
