Buy a $600,000 property that appreciates to $700,000, then use the $100,000 equity as a deposit for a second purchase. How you structure the first deal determines whether you can scale to a multimillion-dollar portfolio.
Your success in your second property potentially has a lot to do with your success in property deal number 1. Now, when I'm working with investors to actually grow a multimillion dollar portfolio and we're going from their very first property deal to number 2, what our target is, is that we've gotten this first property deal and we purchased this property deal with the second deal in mind. Maybe we've bought it for $600,000, perhaps we've bought this first property deal And the property over maybe 1 or 2 to 3 years, depending on the market, depending on your planning, this strategy has gone up to maybe $700,000. What that means is that you've got $100,000 of equity within that property itself. We then want to use that $100,000 as the deposits and costs for the very next deal. So key criteria, deal number 1 is going to dictate how well you're going to do with deal number 2.
