Real Estate Growth: Solo or Scale With Investors?

My first investment was a heavy lift—a pair of duplexes that needed everything. Over the course of two years, I poured my savings and countless hours into them. I managed the contractors, handled tenant issues, and performed many of the physical tasks myself. The deal was ultimately a success, but I didn’t buy another property for three years.

Why?
Because my capital—and all my time—were tied up.

That experience forced me to ask a big question:

Do I want to keep growing slowly on my own, or bring on investors to scale more quickly?

This week’s newsletter breaks down the considerations to make before choosing to bring on investors.

The Tradeoffs

Either approach can work, but each comes with real tradeoffs. Here’s how I think through the differences:

The Upside of Taking On Investors

For those willing to take on the added challenge, raising capital opens up a new set of opportunities. You can pursue larger, more profitable deals that wouldn’t be accessible on your own. You can build a real team, delegate more, and stop wearing every hat.

You start to benefit from economies of scale—better pricing on services, more professional operations, and ultimately, a more sustainable business. If you treat your investors well, they’ll reinvest, refer others, and become long-term partners in your growth.

A Shift in Role and Identity

Bringing on investors isn’t just a funding decision—it’s a shift in role. When you own 100% of a small deal, you’re in full control but also stretched thin. You do it all: underwriting, leasing, accounting, asset management. And for many, that’s part of the appeal.

But as soon as you involve investors, your role changes. You’re no longer just a real estate investor—you’re now a steward of other people’s capital. You have to communicate clearly and often, perform consistently, and make decisions with your investors in mind. It’s not just about doing bigger deals—it’s about building a business.

Investor-Backed Deals Demand More Structure

A deal might be handled differently when buying solo versus with investors:

A solo buyer might acquire a building and renovate slowly out of cash flow. The down payment was kept minimal, and cash flow for the next 5+ years will be choppy because it's constantly being reinvested. Reserves are light. You’re comfortable riding the ups and downs because you’re only accountable to yourself.

An investor-backed version of the same deal needs more structure. You’re expected to have a full renovation budget funded up front. You keep a healthy reserve account from Day 1—often six months of debt service or more. You underwrite to pay out stable distributions once the work is complete, not spotty returns along the way. Investors want to know the business plan is funded, de-risked, and on track.

The Key to Investor Relations

A question I often get is: Do investors constantly ask for deal updates? Not at all. Clear, consistent reporting is what makes this possible. When you send detailed investor reports including renovation progress, financials, and ample photos that show the plan in action, investors stay informed and confident. The goal is simple: overcommunicate early so there are few unanswered questions later.

Final Thoughts

There’s no single right way to grow in real estate.

Solo ownership means slower growth—you’re limited by your own capital, time, and borrowing power. You’ll likely self-manage, wear every hat, and take on the daily grind of operations. But the upside is simplicity. You don’t answer to anyone else, and your risk is limited to your own money and decisions. For many, that’s a worthwhile tradeoff.

Investor-backed growth opens the door to scale—but it also raises the bar. You’re still on the hook financially, often with personal guarantees, but now you’re also accountable to your investors. You take on reputational risk, legal obligations, and the responsibility of performing consistently and communicating clearly. The stakes are higher—but so is the potential.

For me, bringing on investors was the right move. It allowed Ridgeview to expand far beyond what I could’ve done alone—and it gave me the chance to work alongside smart, aligned partners who believe in the long-term vision.

-Ben Michel

Ben Michel is the founder of Ridgeview Property Group, an investment firm specializing in multifamily real estate. Register Here to be notified of available investment opportunities.