Where to invest $1.4m to maximize rent? (Paying cash)

Where to invest $1.4m to maximize rent? (Paying cash)

Member since 2025 · 13 posts · 14 votes

In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.

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Accountant · NY · Member since 2025 · 39 posts · 41 votes
1y

$6,000 per month or $72,000 per year, which is your NOI. Divided by purchase price of $1.3mm (using all cash), would be a 5.5% cap rate. You could park that money in the bank and get close to that. Why not just buy NNN or commercial property where you may have less management. Under your scenario, you would have to buy around 4 homes. Something else to consider.

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  • Accountant · NY · Member since 2025 · 39 posts · 41 votes
    1y

    $6,000 per month or $72,000 per year, which is your NOI. Divided by purchase price of $1.3mm (using all cash), would be a 5.5% cap rate. You could park that money in the bank and get close to that. Why not just buy NNN or commercial property where you may have less management. Under your scenario, you would have to buy around 4 homes. Something else to consider.

    • Member since 2025 · 13 posts · 14 votes
      1y
      Quote from @Account Closed:

      $6,000 per month or $72,000 per year, which is your NOI. Divided by purchase price of $1.3mm (using all cash), would be a 5.5% cap rate. You could park that money in the bank and get close to that. Why not just buy NNN or commercial property where you may have less management. Under your scenario, you would have to buy around 4 homes. Something else to consider.

      I wouldn’t put my money in a bank because even if I earned 5.5% on it, the money wouldn’t be appreciating outside of that and inflation would destroy it. If I can earn 5.5% or more on real estate, the properties will appreciate faster than inflation, and my wealth won’t get eaten up. Do you know where folks are investing to earn 5.5% or even 7% on cash purchases of recent construction properties? Is it possible to hit those numbers?
  • Accountant · NY · Member since 2025 · 39 posts · 41 votes
    1y

    How can you be so sure homes will continue to appreciate? Maybe in the long-term it will. But how long?

    I just saw a post on BP about Nashville rents going down. 

    You know your specific market, but look at things from different angles see what makes the most sense for you. Good luck. 

    https://www.biggerpockets.com/forums/311/topics/1246835-aski...

    • Member since 2025 · 13 posts · 14 votes
      1y

      @Account Closed Well homes always appreciate in the long-term. I would be holding these properties for 10-20 years.

    • V.G JasonPro Member
      Investor · Member since 2022 · 3k+ posts · 3k+ votes
      1y
      Quote from @Account Closed:

      How can you be so sure homes will continue to appreciate? Maybe in the long-term it will. But how long?

      I just saw a post on BP about Nashville rents going down. 

      You know your specific market, but look at things from different angles see what makes the most sense for you. Good luck. 

      https://www.biggerpockets.com/forums/311/topics/1246835-aski...

       It's a term game.

      you don't park in cash if you're trying to catch the underlying. This is what makes RE great; in regards to appreciation, etc., buying right is imperative.

      @Shane Finnegan your strategy is sound I suggest you do what I've mentioned several times on this board. Put 70% of that cash in distressed and fix up then rent, by buying deep in good areas like Nashville, put 30% in short term mortgage notes.  I know the latter is like a CD, yet higher, but great hedge to taper your entry into RE again on the event the rehab takes time, market turns bearish short term yet define your directional position.

      I've done this in Nashville, among other areas, and my cost basis is so low and my capital has recycled. It's excellent and all-weather way to do it. 

      Another strategy which is leverage based. Is be 20% levered not 0%. Diversify in some STRs at 0%, LTRs at 50-60%. Keep cash against other forms of assets if it's truly retirement such as gold, equities, btc. Just a thought. 

    • Member since 2025 · 13 posts · 14 votes
      1y

      @V.G Jason So you out 70% cash down on the properties you buy? Can you recommend any real estate group that will actually do the hard work, knows how to avoid bad neighborhoods, and has someone in-house that can help me do the 1031 exchange by the book?

    • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
      1y
      Quote from @Shane Finnegan:

      @Account Closed Well homes always appreciate in the long-term. I would be holding these properties for 10-20 years.


      Bad idea Shane. 

      When investing in class-A new-built we NEVER hold longer then 7yrs. 

      Our sweet-spot is 5-7yrs. 

      When deploy correctly, we are in path-of-progress and with that we get significantly outsized appreciation rate in those early years as inventory rapidly declines AND the area is still red-hot demand. 

      Also, the first 5-7yrs we get to enjoy that amazing dream land known as 0 or near 0 cap-x and maintenance. Yr7 is when cap-x reaping starts hitting and stealing our returns. 

      So we work highly strategic to liquidate at retail between yr5-7, passing the cap-x hot potato, getting the monetization of nearly new, and tapping the tail of the red-hot demand before it wains because progress moved on. 

      Via 1031 we turn 1 into 2, rinse and repeat. 

      This is how the "average" investor can start with say just 4, and in just a few cycles compound 4 into 32..... 

      Do that math for returns, yeah, it seems mythical but I assure you it IS real-world and I have a number of clients actively doing now today and for past several years. it's the answer to how we turn $1m into $7m with least risk exposure and highest certainty. 

      What is often way WAY understated in the investment real estate industry is IT'S ONE BIG MATH GAME. 

      Math trumps ALL. And those with greatest supremacy of the math, win biggest and most consistently. 

      And I didn't even touch on the joy of depreciation on 7yr vs 27.5yr schedule and so on.... 

  • Andreas MuellerBusiness Member
    Real Estate Agent · Nashville, TN · Member since 2019 · 410 posts · 182 votes
    1y

    $6k is a horrible return, you can 1.5X that cash flow comfortably with the right property. 

    Find a few multifamily in Nashville (Im biased this is where I invest) in an area that is appreciating faster / in the path of growth (you can find an agent here on BP investor agent finder), force the appreciation through a renovation, speed up depreciation with a cost seg, renters pay down your principal... and bobs your uncle.

    In total, with these 5 ways of making money and growing wealth in real estate you should hit roughly 18% total annual ROI

    Good luck!

    Happy to chat if I can be helpful. 

    THE Investor Agent and Management: For Investors by Investors
    • Member since 2025 · 13 posts · 14 votes
      1y

      @Andreas Mueller If you were buying cash and wanted to have zero loan risk, would you still buy multifamily in Nashville. And when you are talking about Nashville, are you talking about the suburbs around Nashville? The city proper area of Nashville is very expensive and $1.4m won't go very far. Also, I'm hesitant to buy old properties that need renovation because there's more risk there. Furthermore, idk if that would work with a 1031 exchange.

  • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    1y
    Quote from @Shane Finnegan:

    In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

    Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


    I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.


    Yeah Shane, your expectation is so realistic I think your biggest problem is going to be sorting through all the real viable potentials. 

    In my primary A-class market, you hit the nail on the head. 

    We have new built properties, $325k-$375k, A class area, properties, tenants.   Getting rents in the $2,500 - $3k range. 

    Yeah..... at least for myself this is a super easy one. Tack on exceptional market appreciation, uber strong economics etc.. 

    Chattanooga is an interesting market too only thing that rubs me wrong is the median incomes, there really lagging. And as I have toured the market and asked questions of who's buying/renting things I was told out-state persons way too much for comfort. I like to see a market standing strong on it's own 2 leg's not propped up by out-state $ because eventually it has to stand on it's own. 

    I love TN and there is a lot of great stuff going on there but I would say it's priced UP on future growth vs current market fundamentals. 

    Same thing happened in TX and now we are seeing the inevitable pull back correction.  

    • Member since 2025 · 13 posts · 14 votes
      1y

      @James Hamling Please tell me where you're investing in real estate and hitting those numbers on A Class properties. That's why I created this post. I need guidance.

    • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
      1y
      Quote from @Shane Finnegan:

      @James Hamling Please tell me where you're investing in real estate and hitting those numbers on A Class properties. That's why I created this post. I need guidance.


      I appreciate your position and desire Shane to get the golden road map handed out here for free. 

      Thing is, I do this for a living. 

      What goes into achieving such commanding knowledge as I have, is no less than a few hundred hours a year of active market monitoring, hundreds more hours of travel touring markets, hundreds more hours networking. 

      The secret is less about finding markets of opportunity as it is monitoring for markets of opportunity. 

      And I'll be honest, I don't like competition. 

      What smart person would? When you have some great honey-holes who in their right mind would shout it from the hill tops? 

      I have lent more then ample information, arguably way too much information, over various posts all but drawing out the map in crayola for those willing to seek. 

      But I am sorry, I am not interested or willing to broadcast publicly a detailed map of what, where, how. That is a service I sell, because it's worth it as am I. 

      I will give you one tip, BlackRock is a competitor to what I do. No, of course they don't do it putting the name BlackRock front and center but it's them. If one does just a bit of research it isn't hard to find out under what names they do this and to then lookup where they are doing what. 

      And they are not chasing cash-flow, there equity investing. That's a very big confirming stamp of approval on appreciation thesis when BlackRocks army of quants has indicated the same. 

    • Member since 2025 · 13 posts · 14 votes
      1y

      @James Hamling Why are you commenting on posts asking for help if you aren't offering help? Is it just to advertise your service and promote yourself?

    • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
      1y
      Quote from @Shane Finnegan:

      @James Hamling Why are you commenting on posts asking for help if you aren't offering help? Is it just to advertise your service and promote yourself?


      I did offer help, ton's of ACTUAL help. You then ask me to serve it up to you on a silver platter FOR FREE. You don't even expect that from a person who takes your order and carries food, you think they deserve compensation but someone putting together how to make you millions is supposed to do it for FREE..... 

      My treasure maps, your dang right they come with a fee, a substantial one, heck yeah they do. Because there worth it, end of story. 

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Shane Finnegan:

    In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

    Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


    I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.


     become a private lender. you would make 2x that amount as cashflow just do not get appreciation, but you could invest the delta into real estate/appreciating assets.

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  • Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    You don't mention your location but are you in the Nashville or Chattanooga area or close enough to drive there/do a short flight? I considered Nashville but decided to look closer to home (Reno or Las Vegas because Nevada has one of the lowest property taxes in the country and good appreciation) but don't have kind of capital you do and I'd be taking out a loan so not making any offers for now.

    Talk to local investors (someone unbiased, not trying to sell you anything). Where are these Class A properties and new builds in the Nashville area? You mentioned being on a 45 day time line to identify properties because of the 1031 exchange so you have a little time to fly/drive out to your prospective markets.

    Some suggestions:

    - real estate debt funds (would need to vet the organizations). I looked at two of them that had 7.5% to 9% return. I felt that this was a little less risky than being a direct private lender but I'm not involved in lending to anyone so I could be wrong. 

    - Delaware Statutory Trust: I considered selling properties and doing a 1031 into DST (the idea being to be less work than managing rentals). There are fees and the downside is not having direct control like your owning your own property. Again need to research the organizations.

    - rent by the room/co-living. You can usually get more rent than renting to a single person/household. This would depend on the market

    - mid-term rentals: could get higher rent but you would need to furnish the home, pay for utilities and WiFi, depends on the market. People who travel for work (travel nurses/medical workers, business people), people displaced from their homes for insurance reasons (e.g. fire, flood victims), etc. 

    Could diversify with a combination of long-term rentals, mid-term, real estate debt funds, other types of investments (REITs, index funds, etc) - not sure of the tax implications with 1031.

  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    1y

    @Shane Finnegan

    Congrats!! That's a great position to be in. I know many turnkey properties in Reno, NV that check that box. 

    A 5.5 cap is very achievable. 

    You can get into a 6-8 unit multifamily on the West Coast, or a lot more in the Midwest. 

    Whatever you decide, I wish you the best of luck!!

  • Brian TeeterBusiness Member
    Real Estate Agent · Little Rock, AR · Member since 2021 · 75 posts · 64 votes
    1y

    Iver been investing for 30 years I Little Rock, Arkansas. Most of my experience is here and cant speak for other places. BUT, My recommendation is to find a linear market, in the middle without the big swings. I would buy new construction or newly remodeled (Turnkey style). I agree with the above that you want to avoid cap-x in the first 5-7 years if possible. So new construction SFR and/or Turnkey are the way to go to achieve.

    Another tidbit - I would rather own 10 SFRs than ONE MF with 10 units. Take it from me, I own both SFR and MF. But, IMO, you have a better exit options / flexibility with the SFR. For example, if you need cash one day, you can sell one of the 10 SFR but you cant sell one of the apartments! Also, there are just way more buyers for SFR than MF. You can sell to an owner occupant or an investor. Smaller buyer pool for MF as most likely with be an investor.

    Last thing - consider small commercial with NNN. Has to be the right commercial. But I find NNN is amazing and a lot more predictable than residential.

    Good luck

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  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
    1y

    @Shane Finnegan,

    As others have said, this is very achievable. It is very smart to be looking at the new construction or "build to rent" space. Others have commented on the the pros of having a property that will not need Capex for the time you hold it. There are some great incentives in that space right now that solve for some of the problems that normally limit cash flow. We see some that include free property management and great rate buydowns.

    Make sure the market you look for has good population and job growth.  It should also have lower land prices and most importantly it should have beneficial Landlord/Tenant law.

    Many of the investors that i have worked with lately are finding this type of market in the Sunbelt states.  

    Best of Luck and let me know if you have more questions.  

  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
    1y

    @Shane Finnegan,

    You’re in a fantastic position - all cash, clear income target, and a smart focus on low-maintenance, newer properties. Let’s break this down to help you hit your goal of $6,000+/month net after expenses and management:

    Your Target ROI:
    With $1.3M–$1.4M and no debt, to generate $6,000/month in net cash flow, you’re aiming for:

    ~5.1–5.5% net yield (after taxes, insurance, PM, etc.)
    That’s absolutely doable with the right markets and property types, especially when you focus on new or recent construction with strong rent-to-price ratios.

    Strong Markets for New or Recent Construction:

    1. Birmingham, AL
    * Excellent rent-to-price ratios
    * Newer builds in solid neighborhoods from $225K–$300K
    * Landlord-friendly, low property taxes, great property management infrastructure

    2. Ocala, FL
    * High population growth, great weather, and strong rental demand
    * $275K–$325K new construction homes renting for $1,900–$2,400+
    * No state income tax and a fast-growing tenant base of families and retirees

    3. Memphis, TN
    * Strong working-class rental market with high occupancy
    * Newer homes in surrounding areas for $250K–$325K
    * High cash flow potential even after professional management

    4. Akron & Canton, OH
    * Underrated cash-flow market in the Midwest
    * Multiple newer or lightly used homes available under $250K
    * Strong rent stability, low taxes, and dependable PMs

    5. Albuquerque, NM
    * Growing tech and healthcare economy
    * New builds in the $275K–$325K range with steady rent demand
    * Landlord-friendly and gaining attention from out-of-state investors

    6. Tulsa, OK
    * Affordable, stable cash-flow market
    * Newer builds in the $200K–$300K range rent well
    * Low property taxes, good ROI potential, and hands-off management available

    With $1.3M–$1.4M, you could buy 4–5 newer single-family homes across 2–3 of these markets:
    * Net $1,200–$1,500/month per property after expenses
    * Diversify your holdings geographically
    * Keep everything professionally managed for time freedom

    Your strategy is rock-solid: focus on new or recent construction, stay debt-free, and hit your income goal with minimal stress. The markets above are ideal for combining cash flow, low maintenance, and long-term growth.

    Let me know if you want to see sample portfolios or actual turnkey deal breakdowns from any of these cities -happy to share.

    Best of luck,

    Melissa

  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Shane Finnegan reach out to @Josh Green. He can help you get a way higher return for your money! 

  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 397 posts · 353 votes
    1y
    Quote from @Shane Finnegan:

    In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

    Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


    I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.


     This will be easy - I have all the systems and team in place to maximize this kind of budget.  DM me and we can chat.

    Impact Realty Tampa Bay.4.961 Reviews
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  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 397 posts · 353 votes
    1y
    Quote from @Shane Finnegan:

    In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

    Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


    I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.


     This will be easy - I have all the systems and team in place to maximize this kind of budget.  DM me and we can chat.

    Impact Realty Tampa Bay.4.961 Reviews
    Suncoast Vacation Homes4.958 Reviews
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  • Real Estate Coach · Chicago, IL · Member since 2020 · 171 posts · 64 votes
    1y

    There's a lot of great deals right here in Chicago! I'd be happy to talk through a few that myself and my team are looking at!

  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    I would recommend setting your sights a bit higher than $6k per month. I think $7-8k is very doable with the right properties. 

    It really depends on your risk profile. Do you want to buy 14 $100k properties in a second tier market in the Midwest or do you want 2-3 nicer properties in A+ areas? If I was in your shoes, I'd probably be getting a vetted local property management company to manage all of these. 

    if you're into MTRs or STRs, you could also go that route to boost cash flow. 

    there's a lot of options and choosing what's right for you is important. Do your research on whatever area you're buying in. 

  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y
    Quote from @Shane Finnegan:

    In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

    Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?


    I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.


    Hey Shane, congrats on being in such a great position from an investing point of view. I would look in markets that have solid cash-flow deals and opportunities. I think it would be great if you started looking into multi-family opportunities in an appreciating market (consider looking in the midwest)

    Kerlous Tadres | Reafco Real Estate542 Reviews
  • Lender · Lake Geneva WI, USA · Member since 2023 · 141 posts · 72 votes
    1y

    Shane, if you don't want to learn real estate and play the game.. you can make satisfying returns doing something else more passively. There is no secret sauce, you can google for tax codes, you can meet with agents, you can use mortgage and rental calculators and do the basic math and you can proactively think about tenant issues and how that might affect you and your returns. Some people here have spent decades doing that and make millions with the methods they've learned.. nobody is going to give that info to you. If you arent willing to do that long, boring work, or pay one of these guys a few grand to consult, you mind as well find a different place to invest. The idea that you want to buy a few properties and get paid rents so you can start your other business, without first learning about the business of real estate seems like a bad omen. You might be better off meeting with a financial advisor who can put your money into the stock market or a REIT.

  • Lender · Chicago IL · Member since 2020 · 359 posts · 230 votes
    1y

    Have you considered private lending, @Shane Finnegan?

    If you invested $1.4 million at around a 12% APR, you'd be earning about $168,000 per year—that’s roughly $14,000 per month in passive income. More than double your $6,000/month cash flow goal.

    The best part? You get those returns without dealing with tenants, property managers, or contractors. Your investment is secured by real estate (the same way a bank is protected when you get a mortgage), and you stay hands-off—perfect if you want to minimize risk and free up your time.

    If you’re interested, I’d be happy to share how private lending works and the types of deals I fund. It could be a great way to diversify your portfolio and earn strong returns without owning physical property.

    -Jennie Berger

    • Lender · Lake Geneva WI, USA · Member since 2023 · 141 posts · 72 votes
      1y
      Quote from @Jennie Berger:

      Have you considered private lending, @Shane Finnegan?

      If you invested $1.4 million at around a 12% APR, you'd be earning about $168,000 per year—that’s roughly $14,000 per month in passive income. More than double your $6,000/month cash flow goal.

      The best part? You get those returns without dealing with tenants, property managers, or contractors. Your investment is secured by real estate (the same way a bank is protected when you get a mortgage), and you stay hands-off—perfect if you want to minimize risk and free up your time.

      If you’re interested, I’d be happy to share how private lending works and the types of deals I fund. It could be a great way to diversify your portfolio and earn strong returns without owning physical property.

      -Jennie Berger


      That is a good idea however I am not sure 1.4m wont stretch very far without collateralizing it and using bank money imo, single family homes for moms and pops raising their families are about 6/700k in my area. Although my market is very unique in terms of value add and building.. Shane it might be a good idea for you to find someone you can partner up with as a HML if you want 100% passive. Especially if you dont have a network or knowledge about the broader industry or your market. Alternatively Id consider minibonds.. Retain liquidity and kick back some dividends and speak with a financial advisor (who wont steer you) while you plan your next move.

    • Lender · Chicago IL · Member since 2020 · 359 posts · 230 votes
      1y
      Quote from @Jacob Thorpe:
      Quote from @Jennie Berger:

      Have you considered private lending, @Shane Finnegan?

      If you invested $1.4 million at around a 12% APR, you'd be earning about $168,000 per year—that’s roughly $14,000 per month in passive income. More than double your $6,000/month cash flow goal.

      The best part? You get those returns without dealing with tenants, property managers, or contractors. Your investment is secured by real estate (the same way a bank is protected when you get a mortgage), and you stay hands-off—perfect if you want to minimize risk and free up your time.

      If you’re interested, I’d be happy to share how private lending works and the types of deals I fund. It could be a great way to diversify your portfolio and earn strong returns without owning physical property.

      -Jennie Berger


      That is a good idea however I am not sure 1.4m wont stretch very far without collateralizing it and using bank money imo, single family homes for moms and pops raising their families are about 6/700k in my area. Although my market is very unique in terms of value add and building.. Shane it might be a good idea for you to find someone you can partner up with as a HML if you want 100% passive. Especially if you dont have a network or knowledge about the broader industry or your market. Alternatively Id consider minibonds.. Retain liquidity and kick back some dividends and speak with a financial advisor (who wont steer you) while you plan your next move.

      Not quite sure what you mean. Forgive me if I'm misinterpreting - Being a private lender earning 12-14% APR (average we see for our capital partners) is a solid way to earn passive income backed by concrete assets (real estate). If I understood the post correctly, he has this amount available in cash. 
    • Lender · Lake Geneva WI, USA · Member since 2023 · 141 posts · 72 votes
      1y
      Quote from @Jennie Berger:
      Quote from @Jacob Thorpe:
      Quote from @Jennie Berger:

      Have you considered private lending, @Shane Finnegan?

      If you invested $1.4 million at around a 12% APR, you'd be earning about $168,000 per year—that’s roughly $14,000 per month in passive income. More than double your $6,000/month cash flow goal.

      The best part? You get those returns without dealing with tenants, property managers, or contractors. Your investment is secured by real estate (the same way a bank is protected when you get a mortgage), and you stay hands-off—perfect if you want to minimize risk and free up your time.

      If you’re interested, I’d be happy to share how private lending works and the types of deals I fund. It could be a great way to diversify your portfolio and earn strong returns without owning physical property.

      -Jennie Berger


      That is a good idea however I am not sure 1.4m wont stretch very far without collateralizing it and using bank money imo, single family homes for moms and pops raising their families are about 6/700k in my area. Although my market is very unique in terms of value add and building.. Shane it might be a good idea for you to find someone you can partner up with as a HML if you want 100% passive. Especially if you dont have a network or knowledge about the broader industry or your market. Alternatively Id consider minibonds.. Retain liquidity and kick back some dividends and speak with a financial advisor (who wont steer you) while you plan your next move.

      Not quite sure what you mean. Forgive me if I'm misinterpreting - Being a private lender earning 12-14% APR (average we see for our capital partners) is a solid way to earn passive income backed by concrete assets (real estate). If I understood the post correctly, he has this amount available in cash. 

      Off the top without reviewing data I can say coming in as a partner is a good move especially with HML could give him the passivity he desires, what I worry about Shane regarding what he has posted it sounds like he wants to put his cash into real estate and make the rents while retaining the equity value so he can focus on a different business, I assume in a different area of the economy as he hasnt said what it was - so his attention will be split between real estate land lording/equity management and what ever his passion project will be. I think that is a recipe for disaster, I think he should learn about real estate first and how it functions and the risks associated before jumping in. Perhaps partnering would be the best decision of his life, idk, but it sounds like he doesn't have much knowledge of the industry to make an informed decision... that is why I suggest he speak with a trusted financial advisor who wont steer him into eternally keeping his money in the stock market while he maybe joins a REIG, gets an agent license, joins his builders/agents association and gains some knowledge. I am not sure what his monthly expenses are but if he puts his capital into minibonds he can retain liquidity while living off the dividends to plan his next move. That is just my suggestion, your suggestion sounds fair too and a great option but I think he needs to do a lot more learning or it could risk a degree of dissatisfaction which may negatively impact our industry. we already have people coming into this forum complaining about syndications and how they got scammed. These are people who may never invest again! not good! People have to educated themselves!

  • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    1y

    Ok @Shane Finnegan you want the super-simple plan (in my opinion as it's something I do time to time)..... 

    DISCOLOSURE: the below is OPINION and does NOT equate to financial or investing advice nor does it equate to any form of brokering advice or relationship in any way, investing is risky, most people loose money in the stock market, options are complex instruments where most people loose most money, invest at your own risk, this is all person opinion NOT advice, agency, advisory in any way shape or form, all the disclosures...... 

    NVDA is trading ~ $157 per share. 

    You buy 8,900 shares of NVDA at market (call it 157) 

    You then go out about 90 days, Sept 19, and you sell 89 call contract on the 158 strike price. 

    This is called selling a covered call (covered by the shares you own). 

    These are selling for $12.50 a share right now. 

    That means you'd get paid $111,250.00 for selling that covered call. 

    Or as I like to call it, your selling a ticket to gamble to some gambler. 

    If do that quarterly, that's about $35k per month. 

    Your downside risk is the stock price rockets to let's say $200, and you only get what your selling that option for, 158 + the 12.50 per share they pre-paid you = 170.50

    Upside risk, the stock only goes up to say 165, meaning it's a net loss for the holder (aka gambler) of that option contract to exercise it and you keep the 12.50 plus you keep your 8,900 shares, rinse & repeat selling yet another in-the-money covered call another 90-odd days out. 

    Or the Black-Swan risk, like I had happen to me from Tariff-Fun a short time ago, the stock walks off a cliff and tumbles too $90 a share and your dashboard is all the red. You keep the pre-paid premium of course, but now your with all the red and if don't know what your doing maybe panic sell, or went on leverage and now in a call on your account position better known as blowing up an account and you just experienced a bullet train lesson on how to loose a few hundred thousand in a blink of an eye.      Or your experienced and knowledgeable and know how to work the other side of things to mitigate and ride it to the other side. 

    -OR- 

    You could hire someone who knows what there doing in Investment Real Estate which is honestly the same/similar strategy but via real estate asset vs stock as an asset. 

    -OR- you could keep hoping for some rando on a forum to give away the keys to the kingdom for free....... 

    Is that detailed enough for you Shane? 

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