All Forum Posts by: Craig Moore

I never understand why people think so Mom & Pop in this industry, more than any other sector. You can own thousands of units and be passive. It's called employees, managers, district managers, and executives. There is a guy (well 3 partners) that own over 1,500 SFH in my area. They went all in when the market crashed. Talk about balls. They had no money. They used hard money lenders to no limit, paid market, and just ran as fast as they could buying foreclosures none stop. Then one days they stopped, cleaned up their portfolio, moved the debt over to bank funding, and now sit on a nice little empire of 1,500 units. Around these parts, that's about 1.3 million in gross rents a month, most businesses pull 20-40%... that workouts out to about 4.6m net per year at 30%.

You have an age timeline. A Goal. Good. Set a goal for this year, try doubling your portfolio every year till you can't. If you business needs cash, figure out how to get it cash. If your business needs more deals, figure how to get it more deals. If your business has to much debt, figure how to pay it down and keep growing. Businesses are about resolving the business problem so it can keep growing as fast as you can understand how to resolve the problem.

There are heaps of people clearing way more than 10k a month, they just don't like advertising it.

now that's a discussion. What is Fu money to you? Cash flow or net worth?

Passive to me is management in place on every one of your properties so you can sit on a beach and not get a single phone call, unless of course your house burned down. 

10k a month after tax? I want to be rich one day, rich with "F U" money, but I would be happy just to replace my salary at this point and I get a little less than half of that after tax, which is great mind you. Just coming into an office everyday isn't always the most enticing thing lol. 

I think that's a long term goal, unless you hustle, save every penny, find the best deals, and put in 100 hours of work every week for those next 7 years. 

I do have one polish friend, who hasn't stopped working 100 hour weeks for the past 3 years and at 28 he is probably almost at that goal, and he said it's been miserable. He's about to take a 2-3 month vacation then start up again. No life outside of doing the BRRRR strategy really, even meeting girls, family anything. He has just been so miserable lately, but it will pay off down the road.

If you are willing to do that, and educate yourself about all the terminology, all the tax implication, legal aspect. He reads books when he has a moment, listens to audio tapes when driving, and that's his life. Drives a beat up 2000 corolla that looks like a homeless person sleeps in. 

Great thing about today in this country is anyone can be rich if they truly want it. 

PS, cashflow is king. Don't try to pay down your houses quicker, just leverage and build up doors like you said. 

Good luck man!

I asked a question like this before as well and didn't get many solid answers so I will give mine

I am 25 years old. started investing this year and am up to 5 properties. Cashflowing about $2600/month (rent is lower than I wanted so I will probably jack it up). I will be at around $8000/month when I've paid off the mortgage and investors. However I am also going to continue leveraging. assuming I continue to buy properties at 2-3/year until I'm 35 I should be at  close to 15k/month before taxes.

It can be done. I have a fulltime right now at 8 hours a day then I go straight to real estate mode for 6-7 hours. EVERYDAY. if you have the drive, you can do it

I started about 5 years ago and I am up to about 7K per month (with great underlying appreciation as well). For me this is probably only going to be a part time thing so I would be happy to get to 20K since I will likely have some other sources of income. I recently started investing out of state to reach my goal, because where I am at prices are way to high in the SFR arena to make sense, and I was getting a little sytmied by it all (had not bought anything new in a couple of years until this June).

My concern is that it has been almost too easy so far to make money and it may start getting much harder as price and rental appreciation rates begin to cool. But I guess everything is a challenge to overcome. Sounds as if you are plenty young enough to get where you are going if you remain focused and are able to push yourself during periods of slow progress which everyone runs into sooner or later.

@Craig Moore Ha! I was being hyperbolic. I should have been more measured with that statement. 20 years ago I would have taken way more risk, but you still have to be careful not to overleverage yourself. In 2008 I had a huge setback because I was cocky after some early success, overleveraged on some multi-families, and when the crash hit and rents cratered, my partner and I didn't have enough liquid to cover it. My partner went bankrupt and the bank snatched the properties back, gobbled my lunch and almost forced me to do the same. Huge setback, but a good learning experience. Just wanted to throw that cautionary tale out there to balance it. 

So definitely be aggressive, because you can be... just don't write checks you can't cash. I have a family to take care of now, so I can't run around guns blazin' like the old days. Hence my above strategy. ;)

Some great answers! For me it's all leverage until I hit a number that I'm uncomfortable covering if I suddenly had a ton of vacancies at once. When I hit that number, I'm going to start paying off a unit. When that's done I can add an additional property, and use the new cash flow to start the domino effect of paying units off faster and faster.  Rinse and repeat until I hit my freedom number. If I were younger, I'd probably leverage my brains loose.

I am also 23 and my goal is 60k a year. I am only 6 years away from hitting my goal. I believe in leverage but I believe in paying off units. I don't want a bunch of doors because as mentioned above, more doors is more work and I want to make a more passive income, I know it'll never be totally passive but the least headaches as possible. 

 I would like to own them outright, but I don't right now. I know many people would argue to use leverage to get more doors, but my goal is to make the most money possible with the least effort. More doors is more effort. I am probably 10 years away from my goal. 

@Craig Moore I share your goal. I am not there yet, but when I have 10 houses clearing $1000 per month, then I can reach my goal. My goal assumes the properties are paid off. I am on my way and I can assure you it is very attainable.