All Forum Posts by: Mike Freske

Thanks, Tom. 

Turnkey is probably the way to go, but I feel I must be willing to accept some lower returns?

Thanks for your reply. I will follow your link..

 Thanks for the thoughts, John.

Person has a 6 figure w2 job as well as a side business in that field which brings in 10-20k a year.  So, more of a passive investment - buy and hold wealth building venture.  Sweat equity for a better return is possible. Self managing the property is an option to start, but, ideally end up with a manager due to the job and side business. Can probably make more in side business than saved by self-managing. 

Hello all,

Been lurking around the forums for a while and always love to see the advice and knowledge everyone is willing to share.

I have a "hypothetical" situation and want to get your thoughts. 

A person has 100k to work with. They can place that money in a 10% short-term 3 year note which would be secured by a SFH. Or they can look to obtain buy and hold rentals. The market in MN still seems to be fairly good. For example, a duplex built in the 1970s in a B-/C+ neighborhood, not needing much work, will sell for about 300-330k with each side renting for between $1200-1400. Obviously these aren't exact numbers, but just ballpark.

First question, and knowing the audience I think I know the answer but curious as to responses, would anyone here look to purchase the note and be satisfied with the 10% return?

Second question, more general, what type of cash on cash ROI should one be looking for if they use the 100k to buy some rentals? Knowing they can get the 10% on the note. I know lots of people talk about cash flow per door, which is good to know, but not sure it always tells the full story.

Or a third option?

Thoughts?  Thanks!

@Lucas Milburn

Schwab

 I currently have a self-directed 401(k). My solo401k (George's company - above).  They do a a good job of helping you set it up - roughly about $750 with a $125 annual expense. I put my funds with Schwab, into a "checkbook" account.  Then you can buy assets under the 401(k) - real estate included.  The assets are subject to the same rules and restrictions as stocks purchased in a 401(k).

Has anyone had any issues with transferring ownership to the LLC. I'm assuming the loans are in your name?

Thank you!

@Curtis Maag

What does lease say? You always have a civil claim under the terms of the contract.

@Manny Alvarado

If you can pay investors 6-8% and do #3, you could obtain a fairly substantial portfolio of properties and, it seems, essentially “eliminate” one of the problems most people have; finding seed money to invest.