All Forum Posts by: Johnoson Crutchfield

I used to be a full time teacher and school principal. That meant giving every bit of my days to my job. Before real estate, I got paid on the 1st and 15th of each month. I was even lucky enough to have a wife who works who also got paid on the 1st and 15th of each month. This went on for about 10 years. Then I got my first rental, and I more money on the 1st of the month each month. Then I got another rental.... and I got more money on the first of the month. Then I added more rentals, and sometimes people paid late, but I got money on the first of the month. Now I've got a portfolio of rentals, and rent literally comes in every business day of the month... it's the most life changing thing I've ever experienced. Here's how real estate has changed my life.

1) I receive checks at all different times of the month.

2) I have more income coming in than ever before.

3) I pay less of a tax rate than I ever have

4) My net worth goes up literally everyday.

5) I spend more time with my kids than I ever have...

6) I get to give to things that I'm passionate about

7) I love what I do everyday.

This is not a post to brag, It is a post to motivate..... How has real estate changed your life?

I used to be a full time teacher and school principal. That meant giving every bit of my days to my job. Before real estate, I got paid on the 1st and 15th of each month. I was even lucky enough to have a wife who works who also got paid on the 1st and 15th of each month. This went on for about 10 years. Then I got my first rental, and I more money on the 1st of the month each month. Then I got another rental.... and I got more money on the first of the month. Then I added more rentals, and sometimes people paid late, but I got money on the first of the month. Now I've got a portfolio of rentals, and rent literally comes in every business day of the month... it's the most life changing thing I've ever experienced. Here's how real estate has changed my life.

1) I receive checks at all different times of the month.

2) I have more income coming in than ever before.

3) I pay less of a tax rate than I ever have

4) My net worth goes up literally everyday.

5) I spend more time with my kids than I ever have...

6) I get to give to things that I'm passionate about

7) I love what I do everyday.

This is not a post to brag, It is a post to motivate..... Don't just look at it.... Grab the Map!!!

Mindset is everything.  You can own 50 million in real estate if that's your goal.  It's all about how you set up your systems and organization.  Good to start small to learn the systems and then stretch yourself deal after to deal.  The bigger problems you can solve, the more you can achieve.  I'm currently solving problems for 100 rental units, but soon I'll be solving 500 unit problems, then more.... You can do it if you're willing to develop systems to do the work for you.  

My biggest goals are to secure half a million dollars in private money for acquisitions and to increase my portfolio by 50%.  Investing in cash flowing markets of single family houses and multis.

Stay with it... and eventually you'll own some too.

@Kyle Jeane sounds like a conversation with a couple of local real estate attorneys would be good for you. I personally have a folder with instructions for my wife of exactly what needs to be done with contacts for my real estate attorney. We go over it each year.

Hi, I am an active investor with 2020 goals to scale my business further. The foundation of my business currently consist of about 100 rental units which we manage.  I am looking to scale up further and I am in need of a money partner who can put up funds in exchange for 8-12% interest per year along with profit sharing. I have a deal that closes January 10 and another set of deals closing January 25.  Reach out me to me if you would be interested in putting 50-500k to work this year.  My number is 225-206-1071.

what are the average APR for 12-18 months?

@Jonathan Greene I bought a house without getting a survey. Turns out I bought the land behind the house next door and not the house. Was very stressed for a little bit but then the neighbor and I worked it all out. Now I’ve got a story that ended happily -:) cost me an extra $500 for the survey and few stressed nights.

I thought I would write a post that describes my current real estate efforts and how it really has begun to snowball into a wealth building machine.  

I currently own a 3.5 million dollar portfolio mixed with single family , duplex, and small multifamily properties.  They are financed largely using small commercial bank notes that payoff in 15 years.  I did not have a lot of money to start this portfolio, so it has been largely built on leverage and some private capital partners.  I am posting this information both as an informational tool and also to get feedback from the community, as I have by no means arrived.  

Assume the portfolio is leveraged at 3 million dollars  @ 7% interest on 15 year notes, with a Gross income of 52,500.  Expenses(taxes, insurance, and maintenance) at 40% leave $31,500 for debt service and cash flow.  The monthly payment to the bank is $26,965, which leaves only $4,535 per month in cash flow prior to property management costs.  In this case as I grow, I personally have decided to use this cash flow for growth in buying new properties and administrative costs in self managing the portfolio.  

So assuming no monthly positive cash flow, this to me is one of the most powerful parts of scaling a rental business.  Because of the power of scale, the principal paydown each month on this portfolio is $16,600 per month, or 199,200 per year. At 5 years in, the portfolio has now paid down $996,000.  At 10 years in, the portfolio has paid down 1,992,000.  This assumes no extra payments, growth of income, etc.  

And best of all, this is the tenants money paying off these notes. I am now thinking about growing even larger portfolio to continue to take advantage of the power of this idea of scale.  Doing it with single roofs has proven to be alot of work to manage, so multifamily or buying packages of homes at the same time seems to be the next step.   What do you all think of this concept of scaling?