All Forum Posts by: Bobby Paquette

Please share your "Why?"

Here's mine: Personally, I believe in real estate investing  because I don't believe in job security.

This has been my experience...I have worked since I was 15 years old, mostly for small businesses and I have had paychecks bounce and have shown up to the office to find the electric bill wasn't paid and the lights and phone systems were down, to name a few. I dedicated over 20 years to these businesses and learned that I cannot rely on a paycheck.

Real estate had been my "side gig" for many years, as an agent. I've been fortunate to work with investors and have learned a lot from helping them over the years. I've studied the market and seen many shifts and changes over the last 18 years. I've also seen my clients investments grow and many times thought, I wish I'd bought an investment property for myself, then...then...then...

I see owning property as a more secure source of income in the long run.

So, Why do you believe in real estate investing?

@Bobby Paquette it sounds like a good system for those who are not financially disciplined or want to reduce debt burden, but this will likely not be a philosophy that I’ll subscribe to.

I’m a firm believer of opportunity cost and time value of money, which means I’ll always max leverage on asset backed loans. It doesn’t mean that I’m living on the edge with no reserves - on contrary I carry higher reserves than most.

But I’ll be opportunistic and maximize returns on any equity as opposed to paying off fixed-rate debts. You can always pay off your full debt anytime in the future, so why not pursue 2x or 3x yield on your incremental equity instead of paying down principal.

Quote from @Jay Hinrichs:

Quote from @Steve Vaughan:

Quote from @Bobby Paquette:

Just recently heard about the shred method from someone who is doing it, is anyone else doing it?? What are your thoughts?

After googling it, I see the goal is to pay off your house in 3-6 years.
I've paid off mine and several rentals.  My method was to punch each mortgage in the face 1 by 1 with extra principal payments. 
What's the secret with this 'method ' and what's the cost / commitment / catch? 

it is truly amazing how much equity you can capture by just sending in 100 to 200 bucks a month day one of your mortgage and insane amount of savings of interest over the years. Safety factor in case of a water landing you have more equity and once paid off your cash flowing huge. with investor loans that provide 100 tl 300 a month positive cash flow.  if you keep it you just blow it LOL. pay it towards your mortgage is my thoughts and what we do.

Exactly, Jay.  We didn't even miss the extra principal payments once we set it and forgot it. 

Something that accelerated our success was committing all extra to our least favorite/ riskiest mortgage at a time vs an extra hundred or two on all.  

Granted our least favorite wasn't the long-term low fixed rate one.  It was the commercial,  private, seller-financed,  higher rate, etc. 

Hopefully the OP will come back to answer what the cost and catch of this 'method' is. Can't wait LOL

Quote from @Bobby Paquette:

Just recently heard about the shred method from someone who is doing it, is anyone else doing it?? What are your thoughts?

After googling it, I see the goal is to pay off your house in 3-6 years.
I've paid off mine and several rentals.  My method was to punch each mortgage in the face 1 by 1 with extra principal payments. 
What's the secret with this 'method ' and what's the cost / commitment / catch? 

Hey Everyone! 

I'm just getting started and reaching out for help with entity structuring (Holding Co, other LLC's, etc). Want to make sure I get things establish correctly now and not have to clean it up later.

Any suggestions on where or whom to work with to get things rolling? 

Thank you in advance!   

-Jay

I currently have two single-family long term rentals, both cashflowing $1000+/mo. And I have one single-family short term rental on Airbnb/vrbo that cashflows ~$3000/mo after expenses. I know I can replicate these numbers if I had more doors, but my current bottleneck is the amount of liquid cash it would take to put 25%+ down for the next property.

I need to get creative or find some private funding.  Seeking any advice.

Hello everyone,  Im currently working overseas and would like to get my first investment property.  What are some good resources to start with short term and vacation rentals ( long distance friendly)

Thank you,

KW