Under the above PASSIVE investing plan, the investor can have accurate allocations from rents going into the various deferred maintenance accounts, and putting accrued profits back into the business compounding the power and affects of the annual active contributions.

I have been on BP for quite some time, almost 4 years now. I have been very close to several deal at various periods throughout that time. For one reason or another they never materialized. Then about three years ago ...

@Ned Carey The interest rate is really 9.16% compounded monthly.

    $100K / 20 Year Mortgage Home price $100,000.00 Down payment 15.00% Total amount financed $85,000.00 Payment amount $584.70 Total payments $140,329.80 Interest rate 5.50% Interest compounding Monthly Total finance charge $55,329.80 Sum Total to Seller $155,329.80 Seller Net Gain for SF $55,329.80   So if I wanted to payoff early, what could I present for options if he wants an early payoff penalty? 

@Matt Crawley age is just a number. if you fail or succeed in this business it wont be because of your age. yes time is a factor i.e. compounding, loan pay downs etc but you can circumvent those easily, just adjust your strategy. you can do this and make it work so long as you invest the time and effort into doing the best you can.  

I'm still saving everything though, to compound the snowball effect.My advice is to work on eliminating unneeded expenses now, so you can create a pile of cash with the money you make wholesaling.

Then the compound interest of starting so young would help a ton too.

Going another 2, 3, or 4 years before getting it to work for you chips away at the power of compound interest for you. 

A compounding factor was I vacated the property at the end of the typical military move cycle and as such there wasn't a new batch of military personnel expected in for another 5-6 months.Brenda Layman & Steve Babiak, I can't imagine they are really making any money at all right now.

And you can take out the pay outs or compound them.