All Forum Posts by: Jack B.

 I wish there was a way to block you, every single one of your posts is negative. Go away troll. No, not long and expensive, quarter mil invested to get 3 million in 10 years. Not bad nor hard. Only for the simple minded...

 I have thought about becoming the bank, lending out home loans so to speak for those who can't get traditional financing. But decided against it. While it's great cash flow now, each month I'm making less and less money and they then hold the asset after 30 years and I'm left with nothing. Compared to owning now with less cash flow, my financial situation improves with each month and eventually they pay the asset off for me.

 Buy as much real estate as possible and hold for life.

I own about 6 million in real estate. There is three million net worth, most of that equity, some cash on hand (1 million). I cash out refinanced last year to buy more properties. So my cash flow was reduced of course and I knew it would. Prior to that, I would have made about 60K a year cash flow and another 40K principal pay down.

I could easily live off that if I relocate to a lower cost of living area like I plan to, because I live modestly, a used Toyota, no fancy stuff, cheap dinners out.

But recently I started considering the tax free strategy of cash out refinancing periodically to live off that equity tax free. I make about 1 million a year in an up market. That would last me about 15 years. Or I could live more spendy, take trips, etc. and cash out refinance more often. The only problem I have with that though is my cash flow never increases and the properties never get paid off.

My original plan was to let inflation raise the rents and retire off that, let the properties pay off and watch my cash flow spike, and also having my net worth explode over 30 years.

Another option I considered was cash out refinancing 2 million out in a few years, put it in index funds, and live off that while I let cash flow increase and equity  build up as the houses pay off. This way I'm not constantly living off equity in my houses via cash out refinancing. 

Yet another option is to cash out refinance, put some in index funds to live off of, put some in apartment complexes in the mid-west (Indiana) and keep building multiple buckets of wealth and income.

Ultimately, I'm about to turn 40. I don't want to work much longer. I had planned on retiring at 40 when I was 30, but I decided to reduce my cash flow and tap equity to buy more and more houses to build more net worth, since appreciation is about 100K a year on each house I own right now, about 1 million a year total. I figured I can always turn equity into cash flow. But this plan requires me to work a few more years to build it up again to where I can tap 2+ million and buy more investments. Either that or I wait for cash flow to increase via increased rents. I absolutely don't want to work past 45. I will say I make 10 times what my gf does in a  year and I still work. She's a full time investor despite having less money than me. Largely because she invests for income NOW rather than in the future, whereas I invest for income in the future rather than now.

Tenant applicant: I'm on section 8, have an eviction and a 538 credit score, will you still rent to me?? (Listing criteria clearlys states credit must be 700+, no evictions, etc.).

Tenant applicant: Dufus shows up, parks in the middle of the street, blocking all traffic, wearing a stupid looking adidas track suit. I asked him why he would park in the middle of the street blocking all traffic rather than in the driveway, let's move it into the driveway. He then proceeds to pull his mustang into my neighbors driveway while I'm shaking my head because he is so dumb I couldn't contain myself. He then said he was going to go home. His village must have summoned him, they realized their idiot escaped.

39 and now worth 3 mil with more houses and more under contract. 1.4 mil liquid.

When I was able to make 50K a year between cash flow, appreciation and principal paydown on a 60K down payment, it absolutely made sense.

Now that the down payment required is 150K a year and I'm looking at 50K a year returns on that dp, it's less attractive. I'm basically making 33% on my money, whereas I could get that in an index fund with less hassle and no effort. 

Yes, the house will be paid off at some point, etc. I've been buying up like crazy lately due to what REI did for me over the past 10 years. But the returns are much lower now that I have to put in so much money each time.

When it get's to the point I have to put a 200K down payment in to make 50K a year returns, it doesn't make any sense anymore.

 I have not dealt with that YET, but I've shopped a few services including Marble, Mynd and Renters Warehouse lately. They might be your cup of tea. I've shopped them as I plan on leaving Seattle for the midwest in the near future and want to leave my portfolio here if I can.

I gave up on loopnet years ago. As an accredited investor I met a company called JRW Investments. They clued me in that yes, the stuff on loopnet is trash the institutional investors left behind. You'll get garbage pro-formas but once you dig in you'll see they are pipe dreams. I found a lot of people who were trying to dump a garbage heap on me a year after buying it themselves, when they were clearly had. If you ask for the T12 vs their pro formas you'll see they are puming and dumping. Best bet is to locate commercial brokers around the country for pocket listings...There is also a YouTube channel I believe it's called Commercial Property Advisors or something like that, the guy has some excellent videos on commercial properties. Personally I'm still a bit leery of the financing for commercial.

Jesus. NO...learn how to do basic math. I've already explained it THREE TIMES In this thread. For that matter forget it. everyone thank the two trolls for these foolish questions, I will no longer respond to the thread. 500K down and 2 mil in property doesn't even make you a millionaire...it's like kindergarten with you and that other wannabe. Always the new members with no history of posts showing they own anything that ruin it for everyone else.

Again, if you put down 500K and own 2 mil in property, that means you have 500K and are not even a millionaire. I have more than TWO million net worth. Not debt, not total portfolio. Now go back to your middle school math class. The title says it all, I made my money in real estate. Hence why I said, real estate multi millionaire. Not 500K'er, not 5 million in debt. This isn't hard to understand for someone with an IQ above their own shoe size.