Investing for Cashflow without Acquiring More Doors

6 Replies

Hi BP community. I am looking for ways to continue to invest in Real Estate, with the goal being monthly cashflow without picking up additional doors. Im tired of managing the property managers. Any suggestions on topics to start educating myself on? I have heard a bit about notes years ago. Plan on taking the next year or so to learn about other real estate investment strategies. I am not interested in flipping..I dont even shop at Ikea hehe.



My first thought is that you could become a private lender. That is passive, so you dont have to deal with tenants or repairs. You can structure it so that you get monthly income rather than one big payout.  Notes would be another way to go, but you need to know how to do due diligence on notes before you jump into that world.  My last idea is that you could be a joint venture partner in a cash flow investment.   Any of those avenues should get you to where you want to be.

To your success


your experiencing burnt out landlord syndrome that usually leads you to note investing..

I would say 80% of my note investors over the years owned rentals.. and as they age and tire they start to sell off and move their cash to notes.. they like the asset class just not the day to day or the uncertainty of what the tenant is going to do or how the PM is going to act etc.. They like to leave that part of the business to what I call professional landlords IE borrowers who have 50 to hundreds of units and its their business and life.. Now for me personally I only deal in performing notes as our clientele base is more risk adverse than those that chase NPN.. these are very passive investors many times using their sidra's.. so capital preservation and consistent payments is the number one goal with a very nice return.. but they are not looking to take on risk for a few % more return..

NPN is a business and needs to be looked at as such.. I think most starting out would be far better served investing in a NPN fund then trying them on their own.. Some embrace it for the extra return.. but they have the time to do so and the mind set or patience to work through them..

Originally posted by @Cj McDougal :

Thank You. I will research this site for more information and start educating myself on Performing Notes and NPN? (what is NPN?).


sorry NPN = NON PERFORMING NOTE IE the borrower is in default and the seller of the note wants to unload it so they don't have to deal with the foreclosure or take the asset on their books.. its an advanced strategy and I think if one is going to look at that model one needs to jump in and create a business .. not just try one and see :) especially low value out of area.. highly risky.

Originally posted by @Cj McDougal :

Thank You. That was my bet but wasnt sure. Will start researching Notes. At this point burnt and want to take a break on rentals and at least explore other options.

it happens if U want to send me a PM I can give you some sites to check out etc.  

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