from 0 to 130 properties in 3.5years

let’s do a back of the knapkin kinda exercise to gauge this.

Lets say 130 properties have a conservative average value off $200k that’s around $26,000,000 and they return $200k split between 2 ppl.

That kinda works out at net investment return of 0.8%

If one goes hell for leather to acquire 130 properties in such a short time frame I can only assume you would have to leverage your equity to the max and then some.Logic tells me that you could only achieve this in a very hot property market where high CG growth allowed you to use rising equity values to place deposits. As the number of properties grow so the equity value grows exponentially.

Couple of things to note for the novice investor when reading these types of books. Do the market conditions that enabled these guys to ramp up to 130 properties in such a short time currently exist or likely to exist in the near future. I doubt that any of the prerequisite conditions exist today or are likely to in the near future.

The other point to note is that if had anything like $26mil invested I wouldn’t be making $200k/yr. I’d be making that per week.

Jack