All Forum Posts by: Paul Riley

Investment Info:

Single-family residence note investment investment.

Purchase price: $65,000

This is a note I bought with a balance of $89k for $65k. The collateral is a SFH worth roughly $100k.
I bought it with 100% financing using private funds.

How did you finance this deal?

Using private capital

Hey Joaquin,

Congrats on a successful investment!

My favorite RE asset class in real estate notes. You can get good cashflow without the hassles of property management an repairs.

Hey @Mark V.,

My favorite asset class is performing notes. You could put that 100k into a performing note for a solid yield and don't need to get any bank approvals.

One of the best parts of performing notes is that you don't deal with repairs, tenants or property management.

@John Harvey I agree. Self directing that retirement account could be a great way to go. It is fairly inexpensive to convert one to self directed. 

What kind of returns is your 401k getting currently?

I invest notes which can be quite passive and get a solid ROI of 8%

@Ricki U. They can take it out at 3.25% and invest it in performing real estate notes around 8%. Performing notes are much more passive than rentals. No property management or repairs but the investment is secured by real estate.

What did they end up going with?

@Steve Adler Hi Steve,

Sorry I'm late to the party!

My favorite cashflow strategy is real estate notes. You get the cashflow like a rental but NO repairs, property management etc. If you put your 200k to work in a performing note at 8%, you'd be cash flowing about $1333 per month. that would be much more passive than a rental. There are pros and cons to every strategy though!

If you're mainly concerned about cashflow, then I'd recommend looking into it.

Did you you end up putting it in a BRRRR?

@Lauren E. Late to the party I know. 

There are many many advantages to using a whole life insurance policy. Its called "Infinite Banking". You can read about it in a book called Becoming Your Own Banker. Essentially, it is the best, most secure place to keep your cash and it pays a high interest rate. There is a lot more to it of course.

My favorite cashflow investment is real estate notes. You get the cashflow each month but NO property management, repairs, or tenants. All the while, the investment is secured by the real estate.

What direction did you end up going with?

 @Andrew B. - thanks, Andrew!

@Steve Vaughan

Haha you can only have plenty of one. Which do you pick?

@James Jones I'd put the 50k to work in a performing real estate note. Get a solid ROI, passive cashflow without the hassles of property management. It also can easily be done nationwide because you're just holding paper!

Did you guys go ahead and get that rental?