All Forum Posts by: Colton Hahn

I am looking to retire in the next few years and my plan is to invest in rental property that generates a cash flow of $150k/year to live on. I currently have about $1,150,000 in savings and another $350k in equity on my primary residence. Total $1.5m to invest. Is this a realistic expectation and if so how would you recommend doing it?

Of course, there are syndications out there with reputable sponsors that pay out 10%+ annually distributed monthly. Just make sure you vet out the sponsor of course as that is one of the biggest risks in the syndication space, "jockey over the horse" sort of approach

2 Votes

Quote from @Tom Murphy:

Hello,

I am seeking advice on the next best possible move for my investment portfolio.

I currently own four properties, one of which is my own personal residence, and three income producing rentals (2 multifamily and one single family). I hold a significant amount of equity in all four properties, approximately $900,000.

I don’t enjoy the renovation and labor it takes to upkeep these houses, and I don’t currently have a reliable handy-man or contractor, which means all of the work falls on myself. I do enjoy the leverage the equity affords me in refinancing to purchase other properties. I don't wish to buy another property that will require me to renovate and manage the day to day.

In my professional career outside of property investing, I make a good W2 income. I max out my retirement accounts, and I hold zero debt except for the mortgages and 2 automobile loans. I have 6 months of savings and $400,000 in stocks.

I am considering the following options:

Buying an out-of-state property through a Turnkey company in hopes to expand my portfolio with limited stress of managing and kick-starting a new property from scratch
Buy an out-of-state property without a Turnkey Company’s help and hire a property management firm on my own; however I am nervous to pull the trigger on this one with limited knowledge of the markets and details on how out-of-state investment is done
Purchasing a vacation rental in a high demand, large market like Florida, with the hopes to utilize it for personal use later on in life or during non-peak rental times
Or investing in REITs or other stock market investments.

Are there any other ideas I should be considering, or do any one of these stand out amongst the others as the best possible move? Appreciate any thoughts.

Many investors who love real estate but hate the day to day tasks of upkeep ("tenants and toilets") invest in syndications. As a limited partner you would not be responsible for those duties, and would still yield better results than traditional equities and on top of that you often times get the tax benefits. Good luck!

0 Votes

If you have net worth of 1m+ not including your home (if you sell) then you would be an accredited investor likely and some very lucrative investing doors open to you. Things like syndication for example become available to invest in and the kind of return for the work you would be doing (none) are pretty exciting. Good luck in whatever you end up doing!

1 Vote

Dallas, Texas

Quote from @Matthew Rich:

Hey guys my name is Matt Rich 30 year old, I’ve listened to bigger pockets podcast on Spotify for months now and just now getting on here to try and learn more. I currently don’t have any extra real estate I own my home it has extra equity in it considering selling it and building something smaller and using the profit and rolling it into other investments. Fear is my biggest issue breaking through the ice and taking a chance on an investment so here to hopefully finally go through with it.

Welcome! Happy to have you.

Curious some other details on your life and goals. What is your income looking like, and whats your liquidity look like these days?

Are you wanting to be passive or active?

0 Votes

Nashville, Tennessee

Quote from @Kashif Khan:

Hello BP members, I am new here and have been an infrequent visitor on bp over the last 4 years or so. I currently do not own any income properties but planning to take a plunge very soon. Here for advice, guidance and consultation.

Looking to invest up to $500k liquid to generate income, not restricted to any area/region - personal preference would be Chicago suburbs.

How do I best leverage my capital for cash flow? What would the seasoned and highly experienced investor do with $500k today? I am exploring various ooptions such as apartment buildings, single family homes, multi family homes, multiple condo units, reits.

I am not sure which route I will take yet. Any advice will be helpful.

It is entirely dependent on your goals, do you want to become an active investor? Explore options such as BRRR or house hacking. If you want to invest passively then explore other options such as syndication, just make sure you do your due diligence on who you park your capital with. Trust the jockey over the horse as they say. Good luck!!

1 Vote

Naperville, Illinois

Quote from @Adam Harris:

I m an LP in a syndication that is going south. I started grasping for straws a month or two ago and asked for my investment back which I realize they aren’t obligated to do. They wanted to tell me how everything is going to be ok but numbers don’t lie. I ve asked a couple of times for fractions my investment back and now they won’t respond to basic yes or no emails - the lack of reply angers me a bit. I’m contemplating trying to affect their online reputation but wondering if this might come back to hurt me in some way. Any thoughts?

First off I am sorry you are experiencing this. No one goes into a deal expecting it to not perform well of course.

Would definitely review the legal documents, Operating Agreement and Private Placement Memorandum as others have mentioned. As you know investing in real estate never has the "G" word, its why I always tell investors to vet out every deal fully and pick the best operator in the safest markets. Picking the jockey over the horse is usually a good approach in this space.

0 Votes

Quote from @TIm Harstead:

The only way Real Estate is truly passive is when you have enough of a cash flow to hire a Property Manager otherwise it can truly be a second job.

Next level passive is in an LP position, then you are truly passive in your real estate holdings

0 Votes

Quote from @John B.:

When is the average time period that a syndication will start paying you returns on your investment? Immediately, 12 months, 18 months etc.

They vary, depends on the offering and the strategy. A lot of companies, us included, have the option to invest and have that cash flow begin the following month of deployment. Others are more delayed as they are hoping to rehab and stabilize before making distributions. It is important to understand the offering/plan. The rehab/stabilize strategy could yield a huge return, its just more delayed

1 Vote

All Forum Posts by: Colton Hahn

Colton Hahn has started 5 posts and replied 313 times.

Post: Any RE syndications that you guys recommended?

Post: How do I find Syndications?

Post: Is $150k yearly cash flow possible with $1.5m investment?

Post: Seeking advice on next investment move

Post: How would you invest $1 Mi in current market?

Post: Hi everyone new to this.

Post: Investment strategy: $500k liquid?

Post: LP invested in a bad deal

Post: What is the "easiest" way to get 3k-5k in monthly passive income?

Post: When is the average that cash flow payouts begins with syndication?