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Real estate investors Sam Trim and Lucas Walls share their journey of building a diversified rental portfolio worth $8.5 million with 110 doors. They have a mix of single-family and multi-family properties, a flipping business, a hard money lending business, a traditional brokerage, and an education business on YouTube. They recently did a cash-out refinance and received a tax-free check of $878,000 by taking advantage of the dead equity in their portfolio. Sam and Lucas started their rental portfolio six years ago with a bank-owned foreclosure property that they bought for $76-77,000 and did a lot of the work themselves. They have a diversified portfolio consisting of both single-family and multi-family properties. They prefer having a mix of both because multi-family properties allow them to create huge chunks of wealth by fixing up a property and increasing rent, while single-family properties are more liquid in the real estate investing world. They used the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method to buy their 55 single-family homes without putting any of their own money into it. They bought the properties with cash or borrowed money, put in some money to fix them up, and then refinanced with the bank to get all their cash back. They were able to do this for their first property, which they bought for $76,000, put in $15-20,000 to fix it up, and then appraised for $425,000. They suggest looking for private lenders among family or friends, close family friends, or people you know who have excess money and are looking to diversify. Sam and Lucas have made several mistakes early in their career, including buying lower-end houses and not doing enough improvements, resulting in a lower appraisal value and having to come up with $25,000 at the refi closing. They were able to get creative with their private lenders and take a small second out on a house with the bank that was doing the refi already.
Real estate investors Sam Trim and Lucas Walls share their journey of building a diversified rental