How to Build Your Real Estate Portfolio Faster Using “The Stack”

You know the common advice all the finance gurus teach:

“Save 10% of your paycheck, put it away in some slow growth stocks or mutual funds, wait 50 years, and you’ll be the richest person… in the cemetery.”

I don’t know about you, but I didn’t want to take the slow route.

I wanted financial freedom faster.

So I jumped into real estate investing!

But that can take a long time, too. I mean, if you buy one house every few years, saving up enough for the down payment each time, it could take 20 years to get the financial freedom you want.

So, if you want to build a portfolio fast, what should you do?

Today, I want to teach you a powerful strategy that I follow called “The Stack.” I think you’re going to like this.

Now, first, let me show you how most people build wealth through real estate.

How Most People Build Wealth (the Slow Way)

They buy a house, then maybe another house, then a few years later another one. They are growing their portfolio linearly.

Nothing wrong with that. It’s just slow.

If you want to achieve faster growth, you’ve got to grow exponentially.

And that’s where the stack comes in. So let me show you a hypothetical example of what I mean.

 

 

How “The Stack” Can Help You Grow Wealth Exponentially

Let’s say you buy one house this year.

That’s it. Just one house.

Buying that first deal is a lot of work, and when it’s all said and done, truth is, one deal isn’t going to get you freedom.

But what it does give you is knowledge and experience.

So, let’s say you wait an entire year and then, after knowing how to buy a single house, you buy two units. Maybe a duplex, maybe two single-family houses.

Awesome!

(And hey, in case you are wondering where you’re going to get this money, I’ll explain that in a moment.)

OK, so now in the second year, you own a single family and a duplex.

The next year, can you double down again? After all, you already own three units. What’s another four? You add the experience and knowledge from the last deal, and now you buy a fourplex or maybe a couple duplexes.

Then, the next year, you double again and buy eight units. Then the year after 16. Then 32.

Each year, you are adding experience and knowledge, dialing in your systems and finding an easier time getting financing.

So, here we are in year six, and you’ve got 63 rental units. If each unit is averaging $150 in profit after all expenses, that’s almost $10,000 per month in income. And that’s with just one purchase per year! What if you double again?

Now, if you wanted to do this faster, maybe you do two purchases per year. Or maybe you go from one unit to four to 16 to 64, and you’ve done it even faster.

The point is: If you grow exponentially, you can grow your portfolio fast. No one gets to hundreds or thousands of units by purchasing one unit at a time. They grow exponentially. And the really fascinating thing is that because you are starting small, you keep your risk small at the beginning. As your knowledge and experience grow, so does your portfolio. You aren’t jumping into a 100-unit for your first deal.

You scaled up smart, you scaled up fast, and you scaled up secure.

How Do You Finance Your “Stack” Portfolio?

Now what about funding?

It’s where you:

  • Buy a fixer upper (with short-term money, like a hard money loan, line of credit, or partner)
  • Rehab it (and make it look ooooh soooo cuuuute!)
  • Rent it out (to great tenants who are thrilled to have a remodeled home—and pay top dollar for it!), and then
  • Refiance it, pulling out all the money you put into it. This gives you your cash back, so you can then…
  • Repeat the process again and again.

A Call to Action

Real estate investing is SO powerful, and I hope this post and video are going to help you accomplish your real estate goals even faster.

But remember, it only works if you work.

So set a goal: How many units will you buy this year? One? Two? Forty?

Then go out and crush it. 

What do you think about The Stack method? Would you use this to start building your portfolio faster? Connect with us on Facebook for more!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Website Built with WordPress.com.

Up ↑

%d bloggers like this: