Make the best of high credit score and income
How do you make the most of a 802 middle credit score and 215K/yr income.

I already buy and hold single and multifamily real estate but at a slower rate(2-3 avg 100K properties/yr).

I'm looking for ideas on how to get into bigger investments with higher potential returns.

Thanks!


[{"id": "dfdqtyw", "text": "Question for you.\n\nI'm 27. I just started a new job where I will be making that sort of money. \n\nWhat do you recommend I do so that I can have a substantive portfolio by the time I'm 37? ", "replies": [{"id": "dfebxt7", "text": "Start networking with hitters in the investment real estate space.  Bring some equity to their deals, they are all looking to bring on equity investors.", "replies": [{"id": "dfel5xt", "text": "Rad. Thanks. :)", "replies": [], "depth": 3}, {"id": "dfeqk9n", "text": "How do you best go about networking in this way?\n\nI've tried BP, but it feels like it's full of scammers and broke wishful thinkers. ", "replies": [{"id": "dfetu6v", "text": "What is BP?\n\nI sell commercial real estate investments.  So in my case, I just went all in with it.", "replies": [{"id": "dfewr6a", "text": "Biggerpockets.com \n\nWhat area are your properties?\n\nWhat is the average CAP rate your buyers are looking for/achieving?", "replies": [{"id": "dfexsmh", "text": "I'm primarily in the Midwest but part of a national firm.  Cap rates vary depending on the product and quality, but NNN retail tends to trade from 5.5%-8%, apartments as low as 5% and varies on the top based on the deal, hotels as low as 9% or so for a newer Holiday Inn Express but can be much higher.  Apartments and NNN tend to be 9-15% or so cash on cash deals, hotels solidly double digit cash on cash, 15-30%+.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dfe0fvr", "text": "Never thought I'd be giving advice on this thread but here's what I'd do if I were in your shoes:\n1. If you haven't bought a primary residence yet, look at buying a 4plex and live in one unit and rent the other 3. You can get a conventional mortgage for this and instant cash flow/mortgage pay down from your tenants\n2. You can keep doing this every 2 years if you want to go slow by renting your unit and buying another 4 unit and doing the same thing.\n3. If you want to get bigger faster, save a 20% down payment, educate yourself on investing in multifamily and buy your first 5-10 unit building. Once you gain experience managing something that size, you can do two things to propel yourself \n   3.a Start networking with private money lenders\n            Friends and family\n            Meetup and Facebook investor groups\n    3.b once you network with people who can chip in the 20-25% for your purchases, the sky is the limit. You keep buying multifamily properties for the next 5-6 years and by this time you're 37 and have a decently cash flowing portfolio of multifamily properties.\n\nFYI, you don't have to do landlord work. You can figure in cost of property management in your acquisitions and just manage the property managers instead of dealing with tenant calls all the time.", "replies": [{"id": "dfe3nlz", "text": "I'm not a fan of this model.  It's slow and you're going to directly take the hit on all your mistakes, while growing your portfolio.\nIm sure lot's of people have used this model to become successful .... I've never met any.", "replies": [{"id": "dfeavxj", "text": "i know a guy that started this way 20ish years ago with one 10 unit building. Clearly he bought at the right times in the 90's and early 00's and pooled money from friends/family.  Kept buying more property, refianced and bought out his investors, and now has a team of ~60 people managing his properties. I roughly calculated his net cash flow from his properties and its roughly 180MM a year. Portfolio is prob worth upwards of 1 Bil but im not sure what his debt figures look like. So its possibly, but tough. ", "replies": [{"id": "dfeb580", "text": "That's not the same as what the gentleman above is describing ! \n\nYour buddy, the one who has probably been on the cover of Forbes with that kind of run, most likely did it the way I am describing.  Balls to wall, borrowing and doing deals, all. the. time.", "replies": [{"id": "dfebvhs", "text": "&gt;Your buddy, the one who has probably been on the cover of Forbes with that kind of run\n\nLol.  It's true, though.  I sell investment real estate and that's a sick portfolio.\n", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dfe3lf4", "text": "Team up with a seasoned pro by sharing in the  equity in deals.  Let the pro find the deals and do the 'real estate' aspect of the deal and you assist with the financial part.  All the while you are learning the process yourself.", "replies": [], "depth": 1}]