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SHOW NOTES FOR EPISODE #014 – HOW I WILL ACQUIRE 1,000 UNITS BY 2020
For those that don’t know, I have set the goal of acquiring/owning/controlling 1,000 units by 2020 by doubling my number of units each year. To clarify the “acquiring/owning/controlling” part of this, my preference is to own all the properties but to do this in 6 years would be pretty difficult, unless of course, I hit ALL HOME RUNS – in other words, to own 100% of each property, I would have to generate significant equity in a short period of time on each property, cash out/re-fi each property after only one year, and get the money from the cash-out-re-fi to cover the entire down payment for the next property (Does that make sense?). More realistically, I will likely have to get either partners or multiple investors for each property. Now, if I do things right, then I will be able to do a cash-out re-fi and eventually pay off investors but it’s difficult to know how much I would get, dollar wise, and how long that will take until it actually happens.
Here is where I am at currently and my future goals:
2014 – I bought 3 properties (an SFR in Atlanta, an SFR in Memphis and a duplex in Memphis) – Total properties for the year: 4 units/doors
2015 – (goal: buy 8 units to have total of 12 units by year-end) I bought a duplex in Indianapolis – did not double last year’s 4 units — added only 2 more units for total of 6 units/doors by year-end – 6 units short! – Total properties at year-end: 4 units
2016 – (goal: buy 24 units to have total of 36 units by year-end) Did a cash-out-re-fi on my first three properties to purchase a 22-unit aprtament community in Indianapolis to bring my total to 28 units or 8 under goal (as of 7/14/16). Still have roughly six months to go!
2017 – (goal: buy 72 units to have total of 108 units by year-end)
2018 – (goal: buy 216 units to have total of 324 units by year-end)
2019 – (goal: buy 648 units to have total of 972 units by year-end)
2020 – (goal: buy 28 units to have total of 1000 units or, if I keep doubling, buy 1944 units to end the year with 2916)
Here is a hypothetical look at what you would achieve if you started investing with only one property your first year and doubling in each successive year for 10 years:
| Net Profit After Expenses and Mortgage Payment | |||||
| HYPOTHETICAL | YEAR-END | $100/door | $150/door | $200/door | |
| YEAR | BUY | TOTAL | Monthly | Month;y | Monthly |
| #1 | 1 | 1 | $ 100.00 | $ 150.00 | $ 200.00 |
| #2 | 2 | 3 | $ 300.00 | $ 450.00 | $ 600.00 |
| #3 | 6 | 9 | $ 900.00 | $ 1,350.00 | $ 1,800.00 |
| #4 | 18 | 27 | $ 2,700.00 | $ 4,050.00 | $ 5,400.00 |
| #5 | 54 | 81 | $ 8,100.00 | $ 12,150.00 | $ 16,200.00 |
| #6 | 162 | 243 | $ 24,300.00 | $ 36,450.00 | $ 48,600.00 |
| #7 | 486 | 729 | $ 72,900.00 | $109,350.00 | $145,800.00 |
| #8 | 1,458 | 2,187 | $218,700.00 | $328,050.00 | $437,400.00 |
| #9 | 4,374 | 6,561 | $656,100.00 | $984,150.00 | $1,312,200.00 |
| #10 | 13,122 | 19,683 | $1,968,300.00 | $2,952,450.00 | $3,936,600.00 |
So that’s my first 1,000 BY 2020 update. I mentioned in the podcast, if you want to get a copy of my personal spreadsheet (perhaps, to make your own goals), I would be happy to send it to you. Just write me at bill@olddawgsreinetwork.com and type “1000 BY 2020 SPREADSHEET” in the subject line and I will send it to you (it’s an Excel spreadsheet).
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