My journey has been much like playing Robert Kiyosaki's popular game CASHFLOW®. I started by doing small deals, then gradually moved on to doing bigger deals. But, looking back, there is at least one thing I would have done differently. While I was building my portfolio, I would have partnered with a sponsor on a larger deal.
When you are under capitalized, you are not only taking greater risk, but you are also cutting off your property's maximum potential. So, know your CapEx budget, and don't ever go in under-capitalized.
I began my journey by doing dozens of single family deals before I graduated to doing larger multifamily deals. So, today is going to be a "Throwback Thursday", as I address one of the most common obstacles new investors run into—finding the right lender to partner with.
I once heard a successful real estate investor say, "The bigger the deal, the easier it is." It wasn't until I had begun to acquire a large portfolio of single-family homes this fully resonated with me.
"To be, or not to be, that is the question." Who would have thought Shakespeare was talking about property management when he wrote those famous words. The answer to that question is nobody. But, just as Prince Hamlet was bemoaning the pains and unfairness of life, every active real estate investor struggles with whether to deal with the pains of self-management, or to consider the professional alternative. Then, once you've decided, how do you find the right one?