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Updated 2 months ago on . Most recent reply

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14
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John Postma
  • Littleton, CO
9
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14
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A couple deals under my belt, but at a stand-still and need a coach/advisor.

John Postma
  • Littleton, CO
Posted

I have a couple rentals locally (South-west Denver suburbs) and my goal was to buy a rental a year.  I rented out my first primary residence in Morrison, CO in 2018, and purchased my first true investment property in Highlands Ranch, CO in 2019.  I refied the HR house in Nov., 2021 and pulled $150k out to invest with a builder in SW, Florida who has yet to deliver the first of three houses in three years.  I'm falling way behind my plan, and with my W2 job becoming unbearable I want to accelerate my RE efforts.  However, I'm not sure how to do that with limited funds saved up.  I need someone to take a look at what I have, where I am, and what I need to do to get this stationary ball rolling again.

Ultimately, I'd love to have an investor who can mentor me, I can learn from, and guide me in my journey since I seem to need help keeping momentum going.  I know that's a tall ask though, so do I instead need to talk to a financial advisor who can adivse me?  Not sure where to go from here, so any guidance is appreciated.

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Marcus Auerbach
#5 All Forums Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
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Marcus Auerbach
#5 All Forums Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
Replied
Quote from @John Postma:

I have a couple rentals locally (South-west Denver suburbs) and my goal was to buy a rental a year.  I rented out my first primary residence in Morrison, CO in 2018, and purchased my first true investment property in Highlands Ranch, CO in 2019.  I refied the HR house in Nov., 2021 and pulled $150k out to invest with a builder in SW, Florida who has yet to deliver the first of three houses in three years.  I'm falling way behind my plan, and with my W2 job becoming unbearable I want to accelerate my RE efforts.  However, I'm not sure how to do that with limited funds saved up.  I need someone to take a look at what I have, where I am, and what I need to do to get this stationary ball rolling again.

Ultimately, I'd love to have an investor who can mentor me, I can learn from, and guide me in my journey since I seem to need help keeping momentum going.  I know that's a tall ask though, so do I instead need to talk to a financial advisor who can adivse me?  Not sure where to go from here, so any guidance is appreciated.


You'll probably get better advice here than from a financial advisor, who wants to sell you some mutual funds.. Here is my take. 

The market has changed a lot over the last 10 years, it went from a cash flow play to an equity play. But on a conceptual level, real estate has always been better for equity than cash flow. 

10 years ago it was possible to optimize for cash flow, today that is tough. And you are making a huge sacrifice on equity if you trim your strategy this way.

If you are looking for cash flow, you need to buy or start a business. By nature a business is all about cash flow, equity is second. Ask anyone who ever tried to sell a cash flowing biz, it's not that easy (compared to selling a house)

The best play IMO is to run a business and feed the profits into real estate.

There are a million ideas, but you can start here: https://www.biggerpockets.com/biggerpockets-business-podcast

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