What do I do 20k, 30k, 45k and 65k?

Question

I'm in a position where in 22 months I will be debt free. As such, I will have 20k, 30k, 45k, and 60k the next 4 years and 60k each year for a few years after that. I live in California, but wish to target Michigan, Ohio or Indiana as places to invest. My initial thought as a remote investor in this area is: Trust local high-reputation companies -be it turnkey or others-, to get my feet wet and move from there. This is daunting as I am well-read, but relatively new to the industry. What would you do in my shoes?

Jairo Ortega · Answer

@Dardine Eduardo Soto check out these sites

https://5dayweekend.com/keep-more-money/how-to-use-the-cash-flow-index-and-attack-one-loan-at-a-time/

https://www.huffpost.com/entry/rocket-scientist-invents_n_6517006/amp

https://www.abandonedcubicle.com/pay-debts-quicker-cash-flow-index/

Mark Hart · Answer

Welcome @Dardine Eduardo Soto!

Congratulations on your ability to start investing in Real Estate! Going Turnkey is a popular way to get your feet wet with relatively low risk however there are a lot of different providers out there with different set ups. I'd recommend looking for a company that has every department under one roof. This means that they personally own the property, they are performing the renovations, and they are the property managers.

Once you've passed that milestone now look for a company with the following resume:

-decades of experience

-thousands of renovations under there belt

-guarantees to their product

-economies of scale (Can buy materials in bulk and store in a warehouse)

- in-house maintenance crew members

- quality reviews and referrals from current investors

- full time client services team to communicate with current investors

- no waiting list

- can buy multiple homes at once in a portfolio

- invite you to visit their office, houses, and team

I hope this helps so you can look for these items while interviewing TK providers in your desired market!

Mark Hart · Answer

@Dardine Eduardo Soto There are many options for you to choose from i'll send you a list now!

Dardine Eduardo Soto · Answer

@Jairo Ortega, I appreciate the comment. If I may ask, can you direct me to a link or video that best summarizes the Cash Flow Index?

Dardine Eduardo Soto · Answer

@Lucas Carl I can't self-manage because I am wanting to invest remotely. As to P Forge, that is a very good possibility. I am considering the area as a retirement landing spot so so having my investments nearby appeals to me greatly.

Jairo Ortega · Answer

@Lucas Carl I think we should clarify that not ALL debt is good or created equal, depending on what it is used for AND what it does to your cashflow. I recently came across a metric that helps evaluate a loan's affect on cashflow. It's called the Cash Flow Index. It's not very well known but it's changed my whole perspective on consumer debt and how to maximize cashflow.

Twana Rasoul · Answer

@Dardine Eduardo Soto no problem.  nothing wrong with out of state investing either, its easier if you find locals around you that invest out of state that are already doing it and hopefully you can piggy back on their success.  best of luck

Luke Carl · Answer

@Dardine Eduardo Soto  Why not P Forge? Why not self manage? Why wait till you’re debt free? Debt is good!!

Check out a book called cash flow quadrant.

Good luck!

Dardine Eduardo Soto · Answer

@Twana Rasoul Thank you for the input. I can see the logic in staying local, especially with getting started. California is however a prohibitively expensive market, so it's a non-starter for me to stay in my area, but you've given me food for thought. I marvel at how wide the opinions on as far as where to dump your initial eggs into. Thanks again!

Twana Rasoul · Answer

@Dardine Eduardo Soto I would be extremely wary of putting that money in education or turnkey. If you want to do either one, make sure you fully vet with others in your town and get real objective feedback about any program or turkey provider. Your best bet is to start networking locally with those who invest in your hometown go get their viewpoint. Also, meet with locals in your area that invest out of state and pick their brain and get objective feedback. Having people you can trust and depend on that can provide you their trusted network in a random out of state market is always better than investing in “the best market” and dealing with people you can’t/don’t trust.

Best of luck!

What do I do 20k, 30k, 45k and 65k?

Most Popular Reply