All Forum Posts by: Peter Fife

If you are in one of those states, they have a broker firm they've partnered with that mimics amortization payments. They manage specific funds on your behalf, and based on the time horizon, 3-5 years, they will deposit a payment back into your account on the 1st of each month, thus creating a monthly income payment. 

 @Chris Seveney - The Investment hired the Contractor. However, after the work I saw and delays I told the investment company I didn't want that contractor working on my property any longer. The Turnkey company is named HeadHunters Investments in Folsom CA. The terms where they would finish the rehab in 3 months, otherwise they would pay rent for each month after if not rented. They made good on the contract until 7 months later when they started defaulting on their payments. 

I'll have to admit when going back and looking at the contract I'm not seeing anything about warranty. This I think was in their presentation deck, and/or email communications. 

I have a lot of emails going back and forth with them about my concerns with the contractor they were using.

I have a rehabbed rental in Detroit. I utilized an investment company to purchase and rehab the property. However, the original contractor I had fired because of the worked I was seeing and 4 months over deadline. Now I'm dealing continuing leaks in the duplex, never had a tenant, because of incorrect workmanship. That is what my current Property management is saying their contractor is saying. 

I'm looking for recourse action on the investment company and looking for an attorney to see if any recourse is possible. 

Chris thanks for the great questions, and I hope I didn't give the impression I thought you where a 'crack-head' as you stated. I'm a newbie at this, not my full time job, just trying to do something better than doing nothing ;)

 Yes you're correct for this ONE investment, but I believe the point isn't doing it only once, it's the layering over time. This isn't a get rich quick thing... it takes time to build this up. AND it's recommended to layer in longer term monthly type of payments, like rentals. So over time you start putting in less, while getting more out of it. 

To your point around T-bills, I'm not close to an expert around any of this, but that vehicle ties up the investment until maturity correct? The purpose of this type of method is to gain an income stream on a monthly basis, which t-bills don't do. Yes you can latter them on a monthly basis. 

@Chris Seveney - thanks for the response and unsure why the pict is so small. As with mastering anything is only when you can teach it right. So let me try to explain with what I currently understand. 

What you state is right IF I was lending my own capital. Which I'm not. Then you may say it's an arbitrage deal, where I'm borrowing at 4% and trying to get an 8% return. That isn't this case either. The process is to leverage from a line of credit (LOC) -> invest -> put own capital towards LOC payoff while receiving amortization payments back. Thus your return is the full principle and interest once you pay off the loan.

Example: 

10K is your LOC. You invest and receive ~300 a month for 4 years. You pay 2k of your own money each month. Therefore you're paying off the LOC at 2300 each month. That takes you ~4.4 months to pay off. Thus you've put ~8,700 of your own money towards the 10k. The interest you're paying in those 4 months is is minimal, and is a different type of interest rate vs amortization interest you're getting. If if you're paying more on the LOC side, you still come out ahead. I watched a webinar around that one. So for the rest of the 3.8 years you're getting a full ~300 of passive income.

Now do it all over again but since you're getting that previous $300 you're now paying $2600 which cuts the time down again. Now there is a point where you must increase the LOC loan to continue this process, and this is where their snowball calculator comes into play.

 ---- 6 month update ----

I still feel the same as I did when I posted this, I'm pretty happy with the service they provide. I'm currently projected to earn 15% for my first year. Below is my tracking spreadsheet I've been keeping. 

I'm only showing the lower half of the totals. There are several rows above where I track each one of my investments, and what I receive above. Figured I'd just show the bottom line so to speak. 

* Flip Payments = Personal cash + all loan repayments received
* Income Received = All Loan repayments (this includes payments from my Own capital I put in upfront, so I'm getting my principle back)
* Passive Income received = True passive income from the leverage concept. Not my own capital, so all principle and interest are counted
* Interest paid = what I'm paying in interest from the loans
* Monthly CoC = Earned / Invested for that month only. Not something to be looked at monthly but kinda fun
* Loan Balance = Due to buying a car, giving extra to church, and kitchen remodel I needed a way to track my loan pay down progress

Gray shading is future/projected - listed only on interest & Loan balance. End of month I true up the actuals. 

--- 

My current projected invested amount is ~100k for the year where the Passive income received is ~15k which gives me a Cash on Cash of 15% This is my first year and I've been told this is higher than normal CoC. The reason I think is I jumped-started with ~40k up front, but that's my own capital that I'm getting back in the Income Received row, which is why I'm not counting that as passive income. However, it's giving me those extra payment amounts to pay off the other loans faster.

Since these loans are 3-5 years, they will continue to pay over that time while I continue to build the 'snowball.' 

My only complaints are these

1) The upfront 30 min meetings you get once a month are not enough. However, by 5-6 months I'm pretty comfortable and 30 mins seem to be enough time, but stills feel rushed.

2) I wish they would have some of their weekly meetings for '6-12' month clients. New clients tend to come to most of the meetings where I'm not getting a lot out of them, and wanting to hear more from those in my time line.

3) This is totally screwing with my YNAB method rule of giving every dollar a job. I'm now focused on putting my true expenses, those yearly expenses, into the process and then pulling the money when needed. I'm losing track of what I've saved for and how much. So struggling to figure that part out. 

 Hey Jorge,

I'm a Tardus client since April of 2022 and I'll BLUF this, bottom line up front, for you. Absolutely worth it. Their fee, 5k. I'm projected to get 18% of Cash on Cash return after my first year. I'm fully committed in getting to a finical freedom date in 10 years or less. Meaning I've redirected 90% of my current retirement saving into this new way of building assets.

Now for the why. My finical journey started in Nov of 2021 when I finished reading Rich Dad Poor Dad, by Robert Kiyosaki. That changed my whole mindset on how I looked at money and what I was doing. I am your typical white collar, white male, upper middle class who works in tech. I'm a saver, which Kiyosaki calls losers. That lead me to talking to a co-worker who introduced me to CFT, Cash flow tactics.

Now I spent $500 on CFT, and I walked away from that company because the message was we've all been lied to. I felt they lean on 'fear' marketing a bit to much. Main message is the accumulation method, ie 401k, is all a lie and doesn't work. It does work, many people have retired from this method, but it takes 40+ years and its main stream and, in my opinion, what I think is the easy path. But what I walked away from CFT was 2 things. 

First CFT showed me that I can 'retire' by replacing my income in a passive manner. They are big Kiyosaki fans. They showed me the 'how' to do what Kiyosaki talked about. Where as Robert, only talked about they What. I didn't understand just from reading Rich Dad Poor Dad, on how to do what he talked about, CFT provided that education.

Secondly, I was introduced to the 'Vault' by CFT. A place to store your money where it can be safe, reduce risk, grow tax free, and be highly leverage. This Vault I come to find is also called, IBC, Infinity banking concept. Thus lead me down another rabbit whole. 

I spent a couple months reading and learning about IBC, which requires a whole life insurance policy. If you want to learn more, I would recommend the following reading: The AND Asset, and Becoming your own Banking. The first is a great intro, persuasive  book, and outlines why IBC is a good thing. Becoming your own banking, is written by the man who's credited in coming up with the Infinity Banking Concept, Nelson Nash. He dives deep into it but can be a bit dry. This gave me the understanding of how to use leverage or OPM, other peoples money. This gave me a tool to utilize, and dip into for down payments for rentals I was planning on buying. As suc in learning about this concept and understanding that I needed to replace my current income with Assets that can produce cash for me to replace my income, I become a BiggerPockets member to learn about how to buy Real Estate. 

I was planning to buy my first property in April of this year, 2022. In my education I came across a company, Rent2Retirement a turn key company. This was in March of 2022, 1 month before my deadline goal of buying a property. As such they had a YouTube podcast/video with a women named Tanisha from Tardus. I liked what I heard: A way to start building passive income to replace your current w-2 income with this thing called a Income Snowball. So I checked them out.

What I really liked was I didn't need to be sold on the concept of why to do this. But how they did it was honestly something I tried 9 years ago, becoming a lender. Where you invest and get your amortization principle and interest payments back on a monthly basis. But there is a very big difference from what I did in 2013, from what Tardus has taught me and that I'm doing now.   

In 2013 I invested in a company called Lending Tree, a peer2peer lending. Basically you invest 10k which buys you into about 300 different notes. Thus, decreasing your investment risk of a defaults because you're only putting in $25-50 per loan. But there are many other investment tools you can use. The key is Leverage and the amortization of payments coming back monthly, and/or quarterly at the latest.

For example, I'm leveraging lets say 12k from my HELOC (but once I get my IBC policy setup, I'll be using this) to put into a peer2peer lending, Prosper. This is giving me roughly $540 a month payment. This money is going back to pay back my HELOC loan. But I'm also putting in my own money to the HELOC, $2400 a month. So that's $2940 to pay back the 12k. That's going to take ~4 months. Once that is done we do it again. Giving a new monthly payment of $540 that goes back to paying off the HELOC which speeds up the process. It Snowballs on the repayments. And their 'system' the patent is the key on how/where to start and when to increase these amounts over time. Not only that, but it's this new way of thinking, they are retraining me on really how to do what I read by Kiyosaki. I just bought a car, so now how do I go about the best way utilizing these 'assets' I've bought/invested into to pay for this car? They have thought me how to go about this while continuing to snowball my way to finical freedom. And this includes buying real estate next year. After I get my base, what they call fast burning fuel (these peer2peer loans), started. Because then I'll be doing larger amounts which I can put towards down payments for homes.

Conclusion, Tardus truly gave me a way to not be overwhelmed with trying to buy 15+ rentals to get to finical freedom, but gave me a greater understanding how to put everything I was learning together. Now I'm building my initial passive income streams from an easier standpoint with amortization lending, understanding how to let my assets buy my liabilities, and how to grow into adding rentals later, or other type of investments. Because there isn't just one way, there are many ways, and they are helping me find what works for me. My only wish at times, and honestly in the first couple months, I wanted to meet more with my success coach because I'm a bit impatient. But now I think I've overcome some of my 'unknowns' and I'm getting into a groove. They have weekly group meetings you can attended but you'll have to ask general questions, nothing specific to your use case. They also have a ton of resources you have access to once you sign up. 

Hope this helps you and others.

@Joe Hines - what resource do you use to look up the demographics of the population, how do I find the rates of home ownership vs rental?