This week I bought the new green iPhone. When I decided it was time to buy a new phone my options were either the tablet size or the regular sized iPhone.
Meaning that I did not even consider other brands. That is the level of trust and experience I have with Apple.
As real estate investors we are also delivering a product – housing. Sometimes it can be easy for us to look over this – but people actually live in our properties. For those of us who own multiple properties in one area we should strive to be like Apple. Where people are willing to pay more to live in one of our rentals because they trust our product.
This week I’m excited to share one such investor. An investor who is growing a large portfolio all in one metro area. It is my pleasure to introduce you to Ryan Minekime aka RMK Real Estate.
How many doors do you have?
Currently I have 29 doors
What got you into real estate investing?
I bought my first house back in 2014 with my sister, and saw it double in value over the course of 4-5 years. From then, I was hooked.
The house was actually across the street from the property I grew up in. One day I was stopping by to check on that property (a rental which my parents own), and noticed that the neighbor was putting up a For Sale by Owner sign. I spoke to him about it, and after quite a bit of back and forth aligned on buying it for the appraised value less realtor commissions. It was a win/win for both of us.
What market(s) do you operate in?
How would you describe your portfolio?
29 Doors, 3 duplexes and the rest single family homes. 18 of those were purchased using the BRRRR method.
What are you currently buying?
I use the BRRRR strategy to acquire single family homes, as well as small multi. I’m also starting to look at larger multi-family (in the 8-12 door range).
Tell us about your biggest mistake in real estate?
While I bought my first property relatively young, it was about a 5 year gap before I bought anything else again. Growing up in CA, I viewed real estate as relatively expensive that you needed a large down payment for. It wasn’t until somewhat recently that I discovered BRRRRing out of state, where if you do it correctly you’re able to leave little to no money in each deal. After my first out of state BRRRR deal, I never looked back.
Tell us about your biggest win in real estate?
My last BRRRR project. I purchased (direct to seller) via cold calling for $115K. From the first cold call to getting it under contract was probably 5 calls, and at least 3 months of silence between calls 4 and 5. I put $30K into it, so my all in with closing and carrying costs was about $150K. I just got the appraisal back at $223K, allowing me to get $167K back. I decided to only pull out my original capital, to make sure the property was still cash flowing successfully.
What advice would you give to a new investor?
Networking is key. I’ve realized over the past two years that my best connections to lenders, wholesalers, PMs, and deal flow has all come through connections. Make sure you’re networking on Twitter (follow me @RMKReal), Facebook groups, Bigger Pockets, and meet-ups.
For those of us investing in real estate – rental properties are the goose that lays the golden egg. These eggs could be cash flow or appreciation depending on how your business is set up.
Over time we get the ‘golden eggs’ production down to a science. Knowing exactly how to project cash flow into the future and how to efficiently turn a unit.
But it would be wise for us to teach the other people in our lives about the golden egg production line. To make sure that this machine can keep turning efficiently without us.
Princess is the sweetest dog in the world – but I don’t have much confidence in her knowing what to do with a golden egg.