All Forum Posts by: John L Daly

@John L Daly I echo many of the other replies here. Off market deals aren't necessarily better deals. Every project you look at you need to do your due diligence, run the numbers and decide for yourself if the project works. I work with a bunch of wholesalers and investors and sometimes the deals they show me don't work, sometimes they do. Sometimes I find deals on the market, or on my own. When I know what a client is looking for we develop a strategy to find that, maybe it's on the MLS, maybe it's through a wholesaler, maybe it's a past client of mine. There are a multitude of ways to find the right project for you. A project that pencils for you, may not pencil for another investor due to financing, experience, location, etc. Everyone is unique and has their niche.

Quote from @John L Daly:

Quote from @Chris Seveney:

@John L Daly

Two parts to every deal -

1. Risk

2. Reward

Greater risk greater you want the reward. Some deals 5% is good others 30% is good. It all depends. It’s also a personal preference on what are your goals and what is good for you - there is no absolute number.

 ok thank you , my main goal is to be financially free, not so much to become very rich .

 Historical returns are around 8-10% - most investors do better but there are a lot that do worse

@John L Daly

Two parts to every deal -

1. Risk

2. Reward

Greater risk greater you want the reward. Some deals 5% is good others 30% is good. It all depends. It’s also a personal preference on what are your goals and what is good for you - there is no absolute number.

@John L Daly It will depend on what class and type of property. You should expect a higher return from a C class than an A or B class because of more risk. You'll generally have a higher return from MF than SFR. The important thing when evaluating returns is to look at all sources of return over time. Too many people look only at cash on cash return in year one. Real estate returns come from 4 sources. 1. Cash flow, 2. Appreciation. 3. Mortgage paydown and 4. Tax benefits. If you're not evaluating a real estate investment on the basis of all sources of return and over time, you're being short sighted. You don't get rich from cash flow a lone and you don't get rich overnight. Wealth is built exponentially over time.

Permanent life insurance is a great product for long term goal. It is however a complex product and you need to learn how to use it properly to maximize its benefit. The front loaded commission make is usually less appealing in the first few years, but after five to seven years, it should start performing better than some other options. Also, you can easily use the cash value of your life insurance as collateral for a loan that you can reinvest in other investments, basically making your money work at two places at the same time.

While you may get better return with a 401k/IRA stock investment, with a wholelife you will get steady moderate return with no negative years, with an Index Universal Life you with get variable return with a long term IRR in the 7-9% range, and also no negative years. Like a Roth IRA/401k, the life insurance is tax free if used properly. And during retirement you can draw approximately 8% per year for the rest of your life while with a IRA/401k it is recommended not to draw more than 4% to make it last 30 years.