All Forum Posts by: Paul Riley

Hi @Kate Weinberg,

If you're looking for income and end up going with option 3, then I would suggest looking at performing real estate notes. You get the cashflow and security of real estate without the hassle of repairs or property management.

I'm a full time note investor myself so if there's anything I can do to help, please let me know!

Hi @Andrea Diaz,

Great to hear about your success so far!

If you do want it to be more passive, I would not get into wholesaling or flipping. Even being a landlord is not really passive.

I'm a full time real estate note investor where I'm able to receive monthly cashflow without the headaches of property management or repairs. Even with that, it takes active work to find the deals, do the due diligence and keep an eye on them.

If I were you,I would either participate in a syndication of some kind or privately lend that money out on RE deals. That way your money is still working for you in real estate but you don't take on lots of active work.

Love it, @Jim Pellerin

Hi @Adam Baur

Congrats on this deal! 

I'd agree with Dave and just set a flat interest rate for their private loan. I'm not sure what the 'standard interest rate' is that they are thinking but you could do something like 6-8% annual interest. That would be much higher than any CDs or bank accounts that they currently have the money in. Splitting the profits doesn't seem fair in my opinion since you will be doing all the work! 

@Nicholas Acevedo

Hi Nicholas,

I'd recommend selling it because the headache that comes with being a SFR landlord will just hurt worse out of state!

I'd use the $50k to buy a performing note so that you can still get the cashflow without having to deal with property management.

Hope that helps!

Hi @Jef A.

My favorite RE asset class is real estate notes. 

You get the cashflow without the headaches of repairs, tenants and property management. This makes is more passive in most cases.

You can also privately lend on RE deals. That way, your money is protected by real estate without doing all of the work.

 Hi Kevin,

Some syndications allow non-accredited investors to participate. You can also privately lend on real estate deals. Could do short term or long term. That way, your money is working for you, secured by real estate and it's passive!

Hope that helps!

Hi @Suresh Jersian

You could privately lend the 100k out on other RE deals for a 6-12 month timeframe. That way your money is working for you but you don't actively have to get involved in a deal.

Hi @Nick DiFinzio

I live outside Philadelphia, PA. If you're in the area, let me know!

There are tons of different Real estate niches. My favorite are real estate notes. You get the benefits of cashflow without dealing with property management, tenants or repairs. Because of this performing notes are more passive than a rental property.

Hi @Trevor Bond

You could buy the debt first and try to get the borrower back on track before foreclosing. That way, you're helping them stay in the property if that's what they want to do. This is a really common strategy in the real estate note space.

If they are already are already foreclosed on, it's extremely unlikely that they will stay in the house to rent it. 

You can definitely do this strategy, you'll just want to buy the debt first and then foreclose if they don't want to work something out.

I hope that makes sense!