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All Forum Posts by: Terra Padgett

Terra Padgett has started 9 posts and replied 65 times.

Post: Landlording is Not All That Passive

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83
Quote from @Carlos Ptriawan:
Quote from @Terra Padgett:
Quote from @Carlos Ptriawan:

everything real estate is hyper-active investment, but the return is not worth it just to catch one hundred  two hundred cash flow, hence I move to even more double-hyper active investment which is rehabbing and flipping house. I'm liquidating right now.

Rehabbing is great active income. We generate active in order to get passive. What do you plan to do once liquidation is complete?

 the liquidation is for cash-flow out of state property. I put more effort into just hyper-active flipping business in local market. By nature I like real estate when it's more hyper-active. I only need one good flip project per year to create six digit income.


 That's great. You sound like you'd be (or are) a great Operator. I personally like to earn active income so that I can multiply those dollars in passive investments. As the great investor Warren Buffet once said, If you don't find ways to make money while you sleep, you'll work until you die. 

Post: Landlording is Not All That Passive

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83
Quote from @Carlos Ptriawan:

everything real estate is hyper-active investment, but the return is not worth it just to catch one hundred  two hundred cash flow, hence I move to even more double-hyper active investment which is rehabbing and flipping house. I'm liquidating right now.

Rehabbing is great active income. We generate active in order to get passive. What do you plan to do once liquidation is complete?

Post: Landlording is Not All That Passive

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83
Quote from @Travis Timmons:

I had gap in between tenants at a long distance mid term rental a few months ago. A buddy of mine and I went and spent the weekend at the property. He was talking about wanting to get into real estate...his exact words were, "I just want some passive income." In the exact moment he was saying that, I was snaking the shower drain. Agreed...not passive. It can get more hands off over time though. 

😄 That is funny. I can only imagine the thoughts that may have went through your head. Tell your buddy to look into getting started in passive real estate by way of an investment club. REI clubs are a great way to learn from others, get deal flow, network, and do deals much bigger than any one person could do on their own. I’ve found it to be one of the truly passive ways to invest in real estate to generate passive income streams. 

Post: Landlording is Not All That Passive

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83
Quote from @Andrew Freed:

@Terra Padgett - Agreed! To truly make an asset perform to the desired cash on cash return, it requires solid oversight. What I will say is you can create systems in place to make it semi-passive, but you will have to provide oversight in one capacity or another.

What I will say is there are certain structures in real estate that allow mostly passive investments and that is syndications. Syndications require work up front in regards to vetting the syndicator, the deal, and the market, but once the aquisiton is complete, you simply sit back and collect the returns. I've invested in a few syndications as a LP and it was the closest thing to mailbox money I experienced in real estate. 

Ditto! Syndications are a great model for the real estate investor who is truly looking for a way to deploy and grow their capital hands off. But vetting the Sponsor is certainly more art than science. Which GPs have you worked with in the past?

Post: Landlording is Not All That Passive

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

You always hear about rental properties as passive income. Well I totally disagree. Even with PM in place, there are still many active activities when it comes to direct property ownership. Yes, it does take several tasks off your plate, but it is NOT “truly” passive. When it comes to your rentals, do you agree or disagree?

Post: Duplex vs RE syndication investment

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

I would absolutely consider the syndication over the duplex if looking for passive returns whose potential growth of capital would outpace a SFH or duplex. I wouldn't do a commercial office syndication, but Multifamily, industrial, medical offices, etc, Absolutely. An 18% return is not unheard of in the syndication space, but certainly conduct due diligence and vet the sponsor.

Post: Less cash flow than all the hype would suggest.

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

I agree. As a Tx investor in LTR for a while now, you really have to be at some scale for the cash flows to add up to anything worth while. Yes you have the other profit centers, but those are all secondary, tertiary or backend benefits; not cash today that you can utilize. And rentals are NOT all that passive anyways. A lot more active items than generally promoted. As an investor seeking passive investment income, I’ve pivoted more towards syndications and commercial investments via a real estate investment club. IMO, I’ve found it to be a much better way to deploy my active income, put money to work, and generate truly passive returns. 

Post: Finding confidence to go from 1 low-ROI rental property to the next step in REI

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

If you've had it for that long and it's still not cash flowing well nor appreciating, I would highly consider putting it on the market for a retail sale. Having invested in multiple condos before, I agree with your realtor in that the appreciation on them is lower/slower. And the HOA rules, assessments (possible special assessments,) wall sharing neighbors, etc all make for a less desirable investment if the goal is to make money.
I’m totally on board with Passive Investing to generate Passive Income and quite frankly rental properties are NOT all that passive; even with a PM in place. IMO, syndications are a better route to go for the investor looking for truly passive investment opportunities. They can be a great partnership whereas you bring the capital and they bring the experience and labor to effectively execute on the business plan. The biggest thing is vetting the sponsor/syndicator/GP upfront. But once you feel comfortable and confident in the sponsor and their deal, then it’s really a set it and forget it type of investment. 
As for learning syndications and vetting sponsors, I’ve always preferred not to go at it alone. I learn and invest through a real estate investment club. They’re similar to stock investment clubs but they do real estate. I’m a part of one and also lead one. They’re both for accredited and non-accredited investors. Some of the biggest benefits come with the ability to spread and reduce risk. And you don’t have to live in the area either. Post Covid, most meetings are virtual and the deals are all over the US. I’d highly recommend looking into a club for passive investment opps. 

Post: Real Estate Investment Club

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

I've recently launched the second edition of the Power Pool Fund investment club. It is a passive REI club where we meet virtually to learn, network, review deals, and pool our capital to group invest in real estate for passive returns. We're currently open to new members looking to join, add value and receive value as we all continue to grow our passive income streams. If interested in learning more about what we do and how we do it, let's connect!

Post: Where to get Annual Rent numbers?

Terra Padgett
Professional Services
Posted
  • Investor
  • Houston, Tx
  • Posts 66
  • Votes 83

Bestplaces.net has all kinds of housing market date. Also deptofnumbers.com