1000 single family homes - Posted by Kevin-Baltimore


#1

Posted by Cesar on December 23, 1998 at 22:25:40:

Mind you, Trump’s “daddy” wasn’t exactly on welfare, here kids. He was doing pretty well himself, and so was “Donny”.


#2

1000 single family homes - Posted by Kevin-Baltimore

Posted by Kevin-Baltimore on December 22, 1998 at 11:37:26:

Can anyone give me advice on the best way to acquire at least 1000 single family rentals? It is my goal to acquire the largest portfolio that I can within the Baltimore Metropolitan area. I do realize that this will take several years, but this is my focus.

Aside from this I plan to flip, retail and lease option properties for cash flow. If there are any good books or courses out there that can show me how to do this, please comment. I can be reached at home 410-944-8122 by pager 410-797-0440 and by fax 410-944-8558.

Thanks,

Kevin-Baltimore


#3

Re: 1000 single family homes - Posted by Rob FL

Posted by Rob FL on December 24, 1998 at 23:30:28:

Joe Kaiser has a new course coming out. It’s called “100 houses in 100 days” or somthing like that. You may want to get a hold of him or go to his website www.nothingdown.com Maybe you can get some ideas from him. I think this course mainly has to do with flipping properties.

Merry Christmas.


#4

Re: 1000 single family homes - Posted by Kevin Cobb

Posted by Kevin Cobb on December 23, 1998 at 21:35:16:

Well I truly thank all who responded to my post on acquiring 1000 single family properties. I must admit however, I was surprised at the overwhelming negative responses and insult about my experience, age and networth. I think that it is remarkable that people THINK that they have a person pegged. I assumed that I would get some more concrete advice other than the obvious one at a time strategy…Aren’t there any landlords out there who have reached this goal? I am not really interested in discouraging words from those who probably don’t have answers! This is supposed to be the premier creative real estate site with open minded and experienced professionals.

I agree that my goal may seem a bit outlandish and out of reach for the average small investor. Nonetheless, I have this goal and would appreciate any other supplimentary study materials. I have studied real estate investing for the past three years and have been an investor since 1996. Thanks for all of your constructive advice…


#5

Re: 1000 single family homes - Posted by DJ

Posted by DJ on December 23, 1998 at 15:51:27:

It’s good to set your goals high, but not so high that
they are unreachable! From newbies in this business to the seasoned experts, everyone knows you’ve got to crawl before you can walk! If you start out just gathering rent properties, you’ll be ready to get out of the business after the first 10, let alone a 1000!
You would have to hire an army just to mangage a 100!
Let’s face it, Donald Trump didn’t start out with the
Trump Plaza! Start out with a realistic goal, and work
from there! Listen to the experts on this site!
Just an Opinion! Good Luck!
DJ


#6

Re: 1000 single family homes - Posted by Millie I.

Posted by Millie I. on December 23, 1998 at 01:07:39:

Kevin,

The magic to reaching that goal is ‘Humility’.

Get off that cloud in the sky and stand on solid ground. You will never reach that 1000 house goal unless you can stop bragging and start learning how to buy and profit from one house first. Then you need discipline to keep going when things gets tough, while learning from others and improving from your own mistakes. When you have learned enough to know what you are doing, then you may realize that it wasn’t a good idea to own 1000 rental houses in one town. It’s too many eggs in on baskets, you should diversify when you invest. Learn from the masters on this website, there is a wealth of books and courses that can make you an informed investor. The richest people are usually also the most knowledgable. Learn form the best. But before that, you’ll have to be more down to earth, more honest and sincere when you ask for help, after all successful people have no reason to help you except for their kindness. There is no get-rich-quick method in real estate investment, everyone that made it earned it one step at a time. So if you want to start with 1000, you’ll have to be a multi-millioneer already, or you are just wasting our time.

Millie I.


#7

Re: 1000 single family homes - Posted by Irwin

Posted by Irwin on December 22, 1998 at 22:35:38:

Aren’t you the same guy who wanted the quick method of developing a seven figure annual income? The answer was, first, develop a 5 figure income. Then, through prudent management, build it into a 6 figure income. Then through even better management and experience, after 25 years or so, you have a shot at the 7 figure mark.
The same answer applies to your question. To get 1000 units, first start with 2, which you can own and operate at a profit. Use your profits and acquired knowledge to gradually increase your holdings to 1000.
Good luck.


#8

Re: 1000 single family homes - Posted by Soapymac

Posted by Soapymac on December 22, 1998 at 19:59:25:

Kevin,

How many hands you got?

Guaranteed that you will have more stopped-up toilets at the same time then you have plungers to unstop them.

Set a more realistic goal. Once accomplished, start from scratch and do it again.

Or are you trying to control who gets elected to Congress by asking your tenants to vote for a ceretain individual?

With 1000 homes, that’s one heckuva voting block.

Soapymac


#9

Re: 1000 single family homes - Posted by Vance(Canada)

Posted by Vance(Canada) on December 22, 1998 at 19:56:17:

Kevin:

1000 properties is an admirable goal! Right now I’d be happy with 20, if that was the direction I was pursuing.

Here’s an idea(from a brain-frozen Canuck mind you!) Aquire, let’s say, 5-10 SFRs and then trade up to smaller apartment complexes. It’s really a matter of economics of scale…There is more of a PITA factor and higher management costs involved with that many SFRs. Once you are established and knowledable about the small ones and gained some credibility and a good track record, work up to the big ones! I may be a bit biased, and I think I’m one of the few on this site who wants to be a landlord, but I think this would be an easier and just as safe a way to build the same wealth as 1000SFR.

Vance


#10

Re: 1000 single family homes - Posted by Frank

Posted by Frank on December 22, 1998 at 18:47:33:

Even if you put minumal down for non-owner occuppied loans it is conventional standard in the lending institution that you will not be able to get more than 3-5 loans for investment property. Eventually, you will need to seek private lending sources and the properties you buy must have plenty of equity or meet the ltv ratios. Unless of course you have considerable financial resources such as cash mainly and other equitable interests for security. I know a guy, not personally that has over 2000 properties. It will take some time. But I think you will serve your purposes better by maintaining a portfoilio of income producing properties for long term objectives but placing your primary objective to buying real estate for cash profits in foreclosure auctions or preforeclosures then resale. Cash today is better than cash tomorro. If you have the money to invest you would do well to seek a roi of 50%-100% and be selective of good income producing properties. Who wants to manage rental properties when you can get considerable cash on cash returns by buying discounted properties. Buy at a profit, pull all your cash with cash-out loans, then rent them out.


#11

Re: 1000 single family homes - Posted by Rob FL

Posted by Rob FL on December 22, 1998 at 18:14:56:

If you are just starting out, then why don’t you just make a goal of getting 5-10 in 1999. It is much better to have smaller stepping stones as goals, than to have some huge goal far off in the horizon.

Personally, I don’t think anyone on this site knows how to accumulate 1,000 rental properties because I doubt anyone on here owns even half that many.

Best wishes.


#12

Re: 1000 single family homes - Posted by Mark R in KCMO

Posted by Mark R in KCMO on December 22, 1998 at 12:27:53:

Kevin,

I don’t think that there is any magic to buying 1000 houses in baltimore, if that is what you want to do just do your home work and start buying.

What I questions is why you would want to risk your investment in a single area, if the economy dips in baltimore, then you may be in for a wild ride.

Spread your risk around, look for balance.

Hope this helps
Mark R in KCMO


#13

Re: 1000 single family homes - Posted by Redline

Posted by Redline on December 22, 1998 at 12:04:36:

OK … let’s see. 1000 properties at let’s say 5 properties a month would take you over 16.5 years. That’s some goal. Now, surely you wouldn’t need that many properties to become “wealthy” so what’s the deal? Want to challenge Donald Trump on The Jerry Springer show or something?

Good luck and keep us posted.
RL

PS - Oh yeah, BTW … there are some good books and tapes on this site that could probably help you along in your quest to dominate Baltimore.


#14

Re: 1000 single family homes - Posted by Redline

Posted by Redline on December 24, 1998 at 16:58:12:

Listen, in all honesty you can’t expect to walk on to a board (or anywhere) where nobody knows who you are or what you’re about and ask about acquiring 1000 investment homes and be taken 100% seriously by everyone. First, because of the difficulty involved, second because of the “Why?” factor, third because you have to buy 1 before you buy 1000. You bill yourself as an experienced investor but yet you’re here asking us for advice in how to accomplish your goal. I think that’s curious.

Now, with all that being said - I mean this in NO WAY to be negative and I DO NOT mean to say that if this is what you want to do - YOU CAN’T DO IT! For all I know, you’ll end up being Donald Trump #2 and you’ll mention me in one of your books. But what I do mean to do is hold a mirror in front of you for just a minute and let you know how it all looks from here.

I wish you good luck, and DEFINATELY ask you to keep us posted on your progress. Aside from pointing you in the direction of the online materials here I’m afraid I’m not qualified to give you advice in this quest. I doubt I’ll ever acquire 1000 investment properties and I doubt I’d ever want to.

RL


#15

Re: 1000 single family homes - Posted by Reif

Posted by Reif on December 24, 1998 at 03:50:03:

I’m a new guy, but I’ve got $.02 also.

You seem to mock the one at a time strategy, but essentially, that’s what it is going to come down to, at least at first, and every deal will be different (although many will be similar).

Ron LeGrand (there’s that name again) says, “The less I do, the more I make.”

His point of course is, if you are going to go for the mega amount of RE you propose, you’d better have a good team around you as you grow to help find the prospects and manage the properties, leaving you the time to actually make the deals - which is what you would need to spend your time on.

As someone pointed out, 5 houses/month will take 16 years. If you are driving around fixing toilets, when are you going to find time to look for new properties?

I don’t know who ordained this forum the best Creative real estate forum on line, but it is good, and the members seem to really want to help.

Your question sounded a bit outllandish to me as well, seeing as you didn’t preface it with anything, such as, “I’ve been investing for two years, I own 14 properties, and I want aggressively increase my numbers. What advice would you have?”

See the difference? Your question was like asking, “I want to be President. How do I do it?”

There are so many important steps in between that it is really hard to answer such a question in this format.

And of course the last question would be: Is that your goal, to own 1000 houses, or is that a means to an end? Maybe there’s a better (read: easier) way if that’s just an ‘interim’ goal.

Again, my $.02 - and I’m a new guy.

Reif


#16

Re: 1000 single family homes - Posted by Cesar

Posted by Cesar on December 23, 1998 at 22:38:16:

I don’t believe anyone was trying to “put you down”, but you have to admit that asking ANYONE, how to acquire 1000 properties seems a bit difficult to swallow.

I think the biggest (or most important) issue that was raised was that after your first 10,20, or 100 properties, you will be so sick of the B.S. that you probably will not want to keep going. This was given by many who have had the experience of “landlording”.

Not to say that it is not a righteous goal, it just needs a bit of fine tuning: Let’s say, for instance, that you modify your goal to Read:

I would like to own 1000 income producing “properties”.

Doesn’t seem very different, does it? But it is. These properties may all be in the same development. A high-rise, maybe? How about a couple of Highrises? I know Baltimore has a lot of warehouses that were turned into Lofts and Apartment buildings. That would be a good place to get into AFTER you have the money to back you up. Which means you still have to build up to it, mentally and financially, because these commercial properties have a lot of headeaches with them too.

Maybe some of your portfolio could include a couple of mobile home parks. I have a friend who has built a few of these parks here in Florida, and is living fairly comfortably on a huge house on the water on Las Olas Blvd in Ft. Lauderdale (for anyone who knows the area, you know what I mean…).

So don’t feel like people are not behind you, it’s just that through the experiences we’ve had, it’s difficult to actually believe that someone (even Superman) would WANT to own 1000 properties…

Hope this sheds some light for you. Good Luck.


#17

Re: 1000 single family homes - Posted by BankRobber

Posted by BankRobber on December 23, 1998 at 19:24:24:

Although not Trump Plaza I do believe that the Donald’s first property was a $25 Million fixer upper. I doubt that he did much of the rehab himself.


#18

Re: 1000 single family homes - Posted by JOHNMAN

Posted by JOHNMAN on December 23, 1998 at 19:59:40:

Millie,

The guy sounds like a newbie like myself. I think he just doesn’t realize at this time what it’s going to take to get to 1000 SFR. He is inquiring to the experts. His goals are just very high and wants to be a landlord.

Johnman