🚀 2 easy ways to scale your portfolio

Hey everyone,

Newer investors often ask me how to scale their real estate portfolio.

I’ve grown to over 60 doors. But I didn’t pay cash out of pocket to buy them all.

Here are 2 easy ways to scale:

Option 1 - The 1031 Exchange:

Sell the current property to scale up to something bigger.

A 1031 exchange lets you sell a property and reinvest the proceeds into another similar property (while deferring the capital gains taxes).

This is a better option than outright selling a property without doing a 1031 because you will lose 15-20% of the value in taxes.

Here’s an example: You own a quadplex. A 16-unit comes on the market. You can do a 1031 exchange to sell the quadplex. The proceeds would fund the downpayment on the 16-unit (without paying capital gains tax).

Note: A 1031 comes with rules and requirements, like strict timelines for identifying and buying replacement properties, restrictions, and the need to use a qualified intermediary.

Option 2 - Partner with people who will complement your weakness.

For example, let’s say you are amazing at analyzing numbers. You’d rather play in Excel than go to a real estate conference and meet people.

You may want to partner with someone who loves building relationships (and hates Excel).

Partnering together makes you stronger because you have different strengths and cover up weaknesses an individual may have.

A classic example of this is the roles of a visionary and Integrator in an organization.

A visionary is someone like Walt Disney or Steve Jobs. An integrator is someone like Roy O. Disney or Steve Wozniak. They ran much of the operations in the background while the visionaries created & innovated.

Partnering also allows you to scale faster because of capital.

Many FI Investors members have pooled capital together to buy deals. Everyone is able to scale their portfolio with properties we couldn’t afford individually.

A slice of a watermelon is bigger than a whole grape.

Note: When finding a partner, make sure you fully trust that person and they have a lot of integrity.

Whenever you are ready, here are 3 ways we can help you:

• Get your 1st rental property with our Rookie Mastermind

• If you have multiple properties and want to scale, join hundreds of other FI Investors in our Elite Mastermind

• 6 Keys to reaching financial independence free ebook