$80k per month profit?!

[Monica M.]

hello all! I am new here. I have been a passive investor in syndication deals for the past 5 years, results not doing that great. Now getting serious to becoming an active investor and doing on my own. I came across this video, very very inspiring! That's how I came to know of BP. Yamu mentioned she is making $80k/mo profit by year2. Profit... per month... 80k - she mentions around 38:38 time mark in the video. Is this possible? I am still jaw dropped but wanted to confirm from experienced folks hence asking.

https://www.youtube.com/watch?v=QIjJ9gUN_KU

[Matthew Irish-Jones]

Anything is possible, but that does not make it likely.  Good Real Estate investors like any good investors make 4-8% returns.  

Its pretty easy to back into how much Capital you would need to make $80,000 per month in profit. 

$80,000 X 12 months = $960,000 net.  

$960,000 / .08 % = $12,000,000

Most people with $12,000,000 are not going all in on Real Estate.  Their main goal is maintaining wealth not creating it, so they are diversifying through all sorts of different investments. 

8% returns are on the high side.  Most investors are breaking even on cash, while getting the benefit of depreciation, debt paydown and appreciation.  The risk is too high to chase high cash on cash returns.  The best investors I know are using Real Estate for tax purposes and appreciation.  The investment needs to pay for itself, but they are not chasing cash returns because they know they will be buying up an entire portfolio of high risk properties.