All Forum Posts by: Paul Riley

Investment Info:

Single-family residence note investment investment.

Purchase price: $55,100
Sale price: $63,000

This was a note deal that I wholesaled to an end buyer. I got the note under contract at $55,100 and sold it to an end buyer for $63,000. It gives the end buyer a 12% return held to maturity in their SDIRA.

The property is worth about $130,000

 Hi @Lynn Anthony,

It is more involved if you're hunting down the deals yourself as with any active investing. If you buy a quality performing note (meaning the borrower is making payments on time every month), it is more passive than a rental IMO. You're not responsible for property management or repairs. It is the same homeowner for the life of the loan so you're not dealing with turning around tenants. You'll also have a 3rd party servicer that collects the payments. 

I'm not too sure what you mean by what company you use but I have my own network of note sellers for sourcing deals. If you want to practice looking at note deals, you can check out paperstac.com. 

Feel free to DM me if there's anything I can do to help

Hi @Lynn Anthony,

Congrats on having $100k to invest!

I think you should stick to the passive route and privately lend on deals or invest it in a syndication of some kind.

You could also buy one or two performing notes. It's a little more active than privately lending on someone else's deal but fairly passive!

Hi @Laurie Palagyi,

Depending on how active you want to get, I would invest that in one or two performing notes. You get monthly cashflow backed by real estate without the headaches of property management.

If you're really wanting a big change to your financial situation, then I'd recommend using that to start an active business of some kind. It could be real estate related but it doesn't have to be!

Hi @Hunter Crowder,

Congrats on a knock out deal! 

As you know, there are many ways reinvest that into real estate. If you want another big check, then doing another flip is probably the way to go!

If you're wanting more cashflow, my favorite asset class is real estate notes. You get the monthly cashflow without the headaches of property management or repairs.

@Rick Albert Yes, you could keep doing that or until you see something else that makes sense with your HELOC

Hi @Rick Albert and @Ocean Van,

Congrats on having your capital to invest!

If you're not seeing deals that make sense using a HELOC, you could consider privately lending those funds on other RE deals. I don't know the terms of your HELOCs, but the terms of your debt would obviously determine the terms of the lending deals you do.

If you do shorter term deals, then that would leave you with the flexibility to jump on something long term when you see it.

Hi @Tim Robbie,

Congrats on your success so far!

My opinion would be to stay away from investing in 10+ single family rentals. That will create lots of active work for you to do even with property managers.

The great news is you only need to generate a 6.7% annual return to get that $100k per year. That is definitely doable even with something that is very passive!

You could look into spreading your capital out over a number of syndications which would be completely passive. You can also privately lend some of that money on RE deals which would be passive.

Another option is performing real estate notes. You get the cashflow and security of real estate without the headache of property management and repairs.

All in all, you can definitely find some low-risk, passive options to generate the return you need!

Hi @James Whitehead

Congrats on your success so far!

I think it all comes down to where you see your portfolio in the future and how much time/effort have to dedicate to your deals.

If you're ready to dive in, why utilize the funds you have in your bank as well as the HELOC? Of course, the terms of the HELOC will determine what types of deals you can do with it.

If you want something more passive, then I say look into JVing with someone in RE with experience or privately lend on their deals. 

I like performing real estate notes because you get the cashflow without the headaches of repairs or property management.

Let me know if there's anything I can do to help!

Congrats @Mario Gonzalez. You're in an awesome position!

I'm a real estate note investor and if it's cashflow you're looking for, I would buy one or two performing real estate notes with that 100k. You should even be able to cover that $450 of personal expenses with the cashflow, from there you can start stocking up your active income for more deals!

That is winning right there.