When I began working with Carlos and his wife Sophia, they already owned several single-family rental properties. They were interested in acquiring several additional properties but had reached their limit for investment lending with mortgages and the banking system. After spending some time coaching them, I helped them see the advantages and economies of scale multi-family investing offered and their focus changed. Carlos and Sophia decided to exit their investments in single-family through liquidation. 


Taking their proceeds they began to purchase several multi-family properties. They soon discovered how simple the process was. Within 90 days they closed on their first two apartment buildings for a total of 30 units. They decided their next purchase would be a 50-unit property. As I continued to coach them on their model and investment strategy we built and designed an exit plan to meet their future retirement goals.


Carlos and Sophia knew that for the first ten years, they would be able to refinance and pull cash out, tax-free, from these investments and reinvest it back into more properties to grow their portfolio. The next step would be to hold approximately 250 units for the next 10 years and then cash out of all the units. There were two keys in building this exit plan. They needed to use their self-directed IRA to alleviate some tax burden and continue to increase the cash flow for their daily lifestyle expenses.