From there, your learning will compound once you're actually in the take action game. 

Purchase price: $600,000 Cash invested: $680,000We purchased a family compound with 5 houses on the property.

Purchase price: $280,000 Cash invested: $580,000 We purchase a family compound with 5 houses on the property.

It’s small stuff that’s compounded: first they had a non-functioning vehicle dropped at the back of the property after they totaled it.

There are so many things that you could put extra money towards that will compound more now and grow into something bigger than paying off your mortgage early.

This can be a little tricky to calculate when capital is returned throughout the project, and it is expected that a little capital will be returned at approximately the six-month mark, but for this deal it is pretty close to just the compounding annual return.4) What are the risks?

If nothing else, prices are down a couple of points this year in Denver, so that's a relative positive over my last purchase.If I was 20 years older, and had 20 more years of compounding and contributions in my 401(k), the private lending world would be a major part of my portfolio strategy right now, as I think yields are really attractive there.It's tough out there, but I trust what I know in small residential more than going all in on more index funds or bitcoin, and lending is just too tax inefficient until I have more time to build wealth in my SDIRA.  

Just like in real estate, business building can and does compound on itself. 

I ran the numbers for any investment below 250k and for the 3 year hold period after 1% annual management fee and 1.25% startup fee, and the profit split, comes to 10% compounded return or an 11.2% avg annual return on a 1.33 EQM on 3 years.

Compound that with a squirrelly seller and tenant, and you’re not just seeing red flags, you’re being beaten about the head and shoulders with them.