Tighten the boot straps, let’s go on a ride. You are asking yourself is this possible? I already have a nine to five job? My answer is absolutely. I know, because I did it myself, and I’m telling you it is possible. It just takes a solid game plan and focus. I recommend buying a couple rentals and getting your feet wet before you take on this task.
With the foreclosure market coming into a great upswing due to interest rates rising and people’s fixed rates going to variable, there will be a lot of houses going up for sale to choose from. Eighty percent of the homes I buy are foreclosures. They are either HUD, Fannie Mae, Freddie Mac, or Bank REO’s. Look for homes that have been listed for a while, the longer they’re on the market the better chance the bank will come down in price.
Now this goal of 10 rentals can be accomplished by using one of the most powerful concepts in business and life for that matter. That is the power of leveraging, leveraging time and money.
If you have a good relationship with your lenders, they will let you work on several deals at a time. That buying power is very important, because in my experience it seems like when one deal rises, one or two other good deals pop up at the same time. The old saying when it rains it pours and when it is dry there is a drought. This way you don’t have to pass up on a good deal when it comes by.
The other leveraging tactic you are going to take advantage of is the most precious commodity on earth, something you can never get any more of, the power of time. If you are like most people and have a day job, you can’t do this without additional manpower unless your superman. Most of the homes you are going to buy at a good price are going to need work before you can get them reappraised and refinanced. You are going to need dependable contractors and handymen to get this work done in a timely fashion. Remember, if you borrow money to buy these homes you want to get them rehabbed and rented as soon as possible so you can refinance them, pay your rehab lender off, and get out of that high-interest loan. Keep in mind that you want to be a real estate investor -- not a contractor. Let the contractors do what they are good at