All Forum Posts by: Austin Fowler

7. Running your own managed fund

This is the approach I use. I run a personally guaranteed debt fund. I focus on raising capital that needs to be kept liquid and provide an 8% return on a transaction account. This is what I have used to scale to a $30M portfolio. Happy to help other people do the same. We have all the necessary technical and legal infrastructure, making it very simple for people to duplicate what we have done.

Quote from @Alan F.:

Quote from @Austin Fowler:

I'm curious what people consider financial freedom through real estate. Some styles of real estate investing are very hands-on, and as such don't really seem to meet the definition of financial freedom even if you get good at them. You'd still be very busy. So what are people shooting for? What kinds of portfolios are people trying to build that would meet their definition of financial freedom? Please share what you are working towards, and where you are at on that journey.

As a contractor (business owner) I've always had my freedom.
That freedom provided opportunities, I work because i love to produce.
I invest because i love to invest.
Life is a journey, not a destination.
Retirement is mortifying to me.

 Financial freedom doesn't mean retirement for me, it means I can focus on my philanthropic passion, namely addressing extreme poverty (opportunity.org) and help educate others on how to build a large and passive portfolio. These activities take up plenty of time, indeed the education side of things, which includes posts like this, can take up as much time as I wish to devote to it.

Quote from @Jules Aton:

Quote from @Austin Fowler:

Quote from @Jules Aton:

For me financial freedom was when my net worth hit the number that divided by 30 years is enough to live at my current level without adding any more. At that point I was free to quit my job if I wanted. Since I enjoy my job and am well compensated I plan continue working but on a glide path for 3-4 more years because inflation and Medicare are two wild cards.

 Why divided by 30? Is that a number of years you would like money to last or does the 30 the come from somewhere else?

 Yes the number of years I need the money to last in retirement. 

 Why no assumption of a return on your wealth? I run a business that personally guarantees an 8% return and has operated for over two decades.

Quote from @Jules Aton:

For me financial freedom was when my net worth hit the number that divided by 30 years is enough to live at my current level without adding any more. At that point I was free to quit my job if I wanted. Since I enjoy my job and am well compensated I plan continue working but on a glide path for 3-4 more years because inflation and Medicare are two wild cards.

 Why divided by 30? Is that a number of years you would like money to last or does the 30 the come from somewhere else?

Quote from @Twannisha Jackson:

i’m shooting for greatness aka having the option to work or not. I'm shooting for the money. shooting to also help folks out; doesn’t hurt to make some money while doing it. I have one property, so far so good. i’m still learning as i go but i’m very hopeful :) i’m building a buy & hold portfolio right now. 4 properties is the goal. after that, some live in flips$$$. whatever comes my way, i’m here for it. 

In my experience achieving freedom through long-term rentals is tough as the cash flow is typically pretty thin if you are paying off a mortgage and arguably still thin if you have paid off the mortgage relative to what cash flow you could generate if that equity were invested elsewhere. I personally own 32 long-term rentals, but they are more generational wealth equity-builders than anything that supports financial freedom for me. In my case, the financial freedom primarily comes from participating in multifamily syndications where I can target a 20% per annum return and be totally hands-off after the due diligence is done (which admittedly is extensive for each deal). You don't, however, need very many such deals per year.

Quote from @Charles Perkins:

For me financial freedom is financially being able to do the things my wife and I want to do.  This may be in retirement or not.  Currently I'm semi-retired, I am an active LTR investor but no longer work 9-5.  I' consider us to be financially free though there are up periodic demands of my time.  Eventually we will sell off property to fully retire.  Still considering exit strategies and timing.  

 If you sold off property to create a pile of cash, what kinds of options are you considering to turn that cash into truly passive income so you can fully retire?

Quote from @Chris Seveney:

Quote from @Austin Fowler:

I'm curious what people consider financial freedom through real estate. Some styles of real estate investing are very hands-on, and as such don't really seem to meet the definition of financial freedom even if you get good at them. You'd still be very busy. So what are people shooting for? What kinds of portfolios are people trying to build that would meet their definition of financial freedom? Please share what you are working towards, and where you are at on that journey.

 I do not put the word "financial" in front of my freedom, I just call it freedom. For me its doing what I want to do when I want to. I still work, I run a company whihc I love doing and work 40+ hours per week but love what I do and if I want to take a day off, go to kids sports event or do whatever - I do.

 What if you wanted to take a year off and travel the world? Would your current setup allow that?

I'm curious what people consider financial freedom through real estate. Some styles of real estate investing are very hands-on, and as such don't really seem to meet the definition of financial freedom even if you get good at them. You'd still be very busy. So what are people shooting for? What kinds of portfolios are people trying to build that would meet their definition of financial freedom? Please share what you are working towards, and where you are at on that journey.

Looking to learn more from people that have bought at least one multifamily property using OPM. Would love to hear the details. How did you get started? Did you have the capital ready first and then find the deal? If you found the deal first, how long did you have to raise the capital?

Quote from @Zachary Hayes:

I’m 21, living in New Jersey with my parents, saving about $2,000 a month, and not in a rush to move out. Given that I have low overhead and time on my side, what would be the smartest first real estate investment move I could make to build long-term wealth

Definitely recommend learning from someone that is successfully executing a strategy you want to do too. I personally have 32 out-of-state long-term rentals, am invested in over 2200 doors of multifamily, have seven flips on the go, if learning about any of that appeals to you, just send me an email.