All Forum Posts by: Tim Watson

 There are different communities and podcasts out there that help you get started.  I think BP does a great job in most topics of real estate investing but the syndication topic doesn't get a lot of focus it seems.  But there are a few other communities that have popped up that have built a network of like-minded individuals that are sharing their experiences in this space.

The best book I've read is by Brian Burke called the Hands Off Investor.  It's a good tactical book that will teach you a lot about the language and metrics of a deal and gives you ranges of what they should be.  There are some others as well.

@Tim Watson - great topic that I think a lot of people have on their mind.  One avenue that you may not run into a lot would be to look at passively investing as an LP in a syndication deal.  These deals range in multiple asset classes and can focus on cash flow, value add equity or both.  There are a lot of options but it would give you yet another arena to look into to diversify your portfolio.  There are also a lot of options to get in for $50k or less.  

@Tim Watson - great topic that I think a lot of people have on their mind.  One avenue that you may not run into a lot would be to look at passively investing as an LP in a syndication deal.  These deals range in multiple asset classes and can focus on cash flow, value add equity or both.  There are a lot of options but it would give you yet another arena to look into to diversify your portfolio.  There are also a lot of options to get in for $50k or less.  

Have you considered investing in a gas and mineral rights royalty fund that pays 10-15% annualized CF?

@Tim Watson

I am not sure there are any licensed financial advisors on BP - a lot of people who may have stayed at a holiday inn last night playing one.

Without knowing your full financial and personal picture, any advice is not worth much since no one knows anything about you

@Tim Watson

The short and obvious answer is that if you are going to try and make money on borrowed money, you have to exceed the cost of the money. 6% interest on a loan isn't great. With the stock market doing poorly right now, and real estate prices relatively high, and borrowed money relatively expensive, there isn't an investment category that looks all that great to justify the expense you would incur to create the income you seek. I personally like the "Pay down any high interest debts" answer. If you have an 18%-24% credit card debt and you pay it off with 6% - you are saving 12%-18% in interest. That's a good use for 6% money. Then work on paying off your HELOC again.

My back-up plan would be to sit tight and wait for mortgage and house prices to settle and when an investment real estate rate equals your HELOC rate - presuming you can find a good cash-flowing property - then pull the trigger. For me - a "Good cash flowing property" would mean at least $300/month free cash flow after principle, interest, taxes, insurance, and a maintenance reserve on a small to medium size single family house; or $300/door free cash flow on a multi-family per month after PITI & a reserve.

Probably not that creative of an answer... but sometimes there is no good answer to a question like you pose.  I'll be curious what others have to say.

All the best!

Randy