All Forum Posts by: Alex Williams

There are many good markets out there for cashflow, mostly in the Midwest. I plan to invest out of state because the cashflow for rental properties here in South Florida is awful. I only care about the numbers...I have no need to be able to drive by my properties. The one thing I will badly miss is my property manager here in Florida and I’ve realized that if I had her wherever I was buying, I’d happily invest on the moon. So with many markets all being similarly good for cashflow I’ve realized that my goal is to end up with a property manager like the one I have, with whom everything is completely passive - she takes care of everything for her 10% efficiently, my rents are always deposited on time, she has taken care of evictions, she deals with problem tenants and gets new ones in quickly, she gets repairs taken care of quickly – in other words she is the ideal property manager. As a major bonus she is also my realtor, so I buy and sell through her too. My point is, I would probably invest in a specific market, among several good cashflow markets, based on the property manager above other considerations. I will visit before buying out of state, not only to see areas and properties but also to meet and build a relationship with a manager. But I can’t fly to every good market and do that. With that said, who in good cashflow markets has a property manager like mine? One they have been with for a long time that ticks all the boxes you would want them to. One that makes their investment as passive as it can possibly be. Looking for suggestions from people who actually employ the property manager rather than referring someone in their network.

I guess I need to clarify a few things. There is quite a bit more than $2 million available. That is just what is immediately liquid and I’m seeing how much I can make with it per month. I can also add to that amount from other sources and get the required percentage down below 5%. I am the trustee and the other beneficiaries are my two brothers. We all have no immediate need for the inheritance. They are in complete agreement with me investing the funds wherever I end up investing them - this post was just to find out everyone’s opinions and see what new ideas and methods are suggested, for me to research further and thoroughly. Not for me to jump on the first suggestion posted and throw all my money into it, as some seem to fear. That’s kind of the purpose of BP, no? The trust allows me to wait as long as I want to liquidate the assets after my father passes and my brothers are fine if I have to wait several years for house or stock prices to rebound if necessary. So no one need fear any foolish use of my father’s last pennies. I simply wanted the best ideas for making a stable, steady monthly income from a given nest egg, for which I will also be talking to a financial advisor - but often they do not know much about or believe in real estate as a vehicle and thus I posted here. Again, the very point of BP, no? If anyone has good ideas if the requirement were under 5% per year then I’d love to hear them. At present I’m leaning towards a mixture of a dividend index fund, a note fund and possibly some apartment syndication. But as I said, I’m looking for ideas that I can look further into. I’m not going to leave my father destitute by throwing all his money into the first idea I hear. Also, the $20,000 is because he generously gives money to family members each month, and if possible he would like to continue. It’s not because he lives beyond his means.

@Ali Boone Ali, because it's money in my father's trust and not just my money, I want to keep the risk as low as possible. I don't want to have $2 million in rentals and 2008 happens again, perhaps I lose tenants perhaps I don't, but I want the money invested with a minimum of risk and stress if things go to crap.

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Thank you to everyone for all the great feedback and information. A lot to consider there.

@Brian Burke Thank you for that detailed and really thorough response.

Thanks again for the information @Dave W., @Dan H. and everyone else. Any suggestions on where to find out about hard money notes @Nick C.?

And if one wanted to go the syndication route, how does one properly vet sponsors? Say if one wanted to look more into people you come across here on BP, how would you do it? Track down past investors and ask them? I've come across threads here where people talk about their own syndications, and some sound quite attractive. But how to be sure?

And equally important is not losing the money, since what it makes is what he has to live off from now on, and whatever is left will be an inheritance for myself and my brothers. So that's an extra incentive to keep the nest egg in tact. At that point I can pursue endeavors with a little more risk, use leverage, etc., but preferably not while I am the money's caretaker.

@CJ M. Thanks CJ. But I feel I should reiterate...I am looking for fairly, not necessarily totally passive. But the most important criterion is highest cashflow, not passivity.