Strategies for Today's Reality for Cash Flow?

Strategies for Today's Reality for Cash Flow?

Member since 2017 · 28 posts · 8 votes
Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura
1Reply
16 views

Most Popular Reply

Real Estate Agent · Boise, ID · Member since 2019 · 192 posts · 184 votes
3y

Hey Laura!

Something that has been working for me is calling agents with listings that have been on the market for more than 30 days and seeing if their sellers are open to seller finance. 

It's a great strategy for agents too because they obviously want to sell the home for their clients. You may just need to work out their commission but everything is a negotiation. 

I do a lot of creative finance so if you have any questions feel free to reach out!

See this reply in the discussion

9 Replies

Jump to latestLatest
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    728 E. 4th street. Pueblo Colorado.

    What do you see?  What can you do with this?  

    I would determine the following:

    1.   How fast how far?

    2. Will SFH MFH cash flow or COC get you there?

    3. Do you see appreciation in SFH MFH. Getting you there?

    Versus both the capital you need and the risk factor.  

    If you decide SFH and MFH won't get you there.

    Move to developing.  You have done developing and land flips before.  

    A.  728 E. 4th street.   What do you see?  How do you triple its value in one year?

    B. Use your life experience. Have credibility. Your kids. What do they and you need now? What do they need when they are 25 and on their own? Build an REI business model around their needs and funding.
    C.  Go with the flow.   What economies are screaming and don’t have enough houses?  Develop tract lots to sale.  Lower risk, high capital.  Go big or go small.   Texas.  No zoning in counties.  Property tax sales, ownership in 6 months.  

    Wrap your head around these examples. 

    You don’t want to do any of these models unless at a minimum you double your investment in 12 months.  Also keep your risk low.  

    Use the lookup on me.  Plus Journeys End or Silver Lake subdivision. 

    49 is young. We started when I was 53.  
    Land bought in November at auction. No special deal.  Definitely not a special market.  25 lots.  All in break even we sale 10 lots. Expect to sale for 2.5 of all costs.  Imagination and paperwork.  

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Laura MacDonald:
    Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura
    You probably have more knowledge and experience than 95% of the people on BP.
    High cash flowing properties can be acquired under the following scenarios
    1. Properties in high crime, deteriorating areas.  Think Detroit.
    2. Class D or low C properties - built cheaply, marginally maintained, low grade tenants
    3. High risk properties - single tenant facilities with short amount of time left on lease, environmental problem properties, ground leased properties
    4. Properties needing “repositioning” - empty/near empty shopping centers, motels with obsolete layouts, nursing homes needing reutilization
    5. Rezoning opportunities - SFR to retail or office
    6. Rehab opportunities

    or you can invest in first lien trust deeds/mortgages and get a 10% + yield
    Private Mortgage Financing Partners, LLC
  • Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    3y
    Quote from @Laura MacDonald:
    Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura

     I would start with your current portfolio and analysis it. Do you have some sub par properties that are not performing well. If so would a 1031 or selling carrying the note make it more profitable and increase your cashflow while reducing expenses and risk. You mention cash flow being important. Does that mean you are looking to pick up more properties or increase performance on existing properties. 

    If you are looking to grow and acquiring more properties can you get a LOC from your existing assets and buy better where rates don't matter as much, and you can pull funds out when rates improve and rents have increased down the road.

    Or do you have capital you can lend out at these higher rates to other operators on deals if you had to foreclose on would be happy taking over? 

    Options are endless but have to see what fits your goals and life. Best of luck and reach out if you want to dive deeper into portfolio management.   

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Laura MacDonald:
    Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura

     Just find a market that has the 1- 2% rule., I recently picked up a nice 3/2 for all in 60kish, rent will be 1400, taxes only 2kish, value about 125k, not to bad. Its all about you network 

    All the best  

  • Real Estate Agent · Boise, ID · Member since 2019 · 192 posts · 184 votes
    3y

    Hey Laura!

    Something that has been working for me is calling agents with listings that have been on the market for more than 30 days and seeing if their sellers are open to seller finance. 

    It's a great strategy for agents too because they obviously want to sell the home for their clients. You may just need to work out their commission but everything is a negotiation. 

    I do a lot of creative finance so if you have any questions feel free to reach out!

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Target owner finance. 

  • Member since 2017 · 28 posts · 8 votes
    3y
    Quote from @Bob S.:
    Quote from @Laura MacDonald:
    Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura

     Just find a market that has the 1- 2% rule., I recently picked up a nice 3/2 for all in 60kish, rent will be 1400, taxes only 2kish, value about 125k, not to bad. Its all about you network 

    All the best  

    Hi Bob, I would love to connect... I have put together an extensive list of markets to evaluate and am having a difficult time finding anything that comes close to that 1-2%.  Thanks for your reply.
  • Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    @Laura MacDonald, Atlanta, GA - rent by the room investments. The asset can produce excellent cash flow, however, it's important to note that more risk is assumed than a traditional rental and that the investment strategy isn't for everyone. If you have any interest in learning more about the strategy, feel free to reach me via cell or email (contact info is listed in my bio). 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Laura MacDonald:
    Quote from @Bob S.:
    Quote from @Laura MacDonald:
    Hi.  I am looking to identify a strategy for my real estate investing this year.  Specifically my #1 goal is cash-flow.  Due to my age (49), I need a strategy that will produce the ability to cash-flow quicker than the longer-term buy-and-hold strategy.  I currently own 13 doors (SMF).  I have done large land flips and some land development work in the past.  Given the current landscape of high interest rates, and prices where they are, I am looking for any creative ideas/suggestions that might help me formulate a plan to hit my goals?  A combination of short-term cash creation to invest in larger SMF for the cash-flow? Anything much more creative than that?  I am open to investing anywhere, and am a major 'doer' once I can wrap my head around a plan.  Thanks in advance.  Laura

     Just find a market that has the 1- 2% rule., I recently picked up a nice 3/2 for all in 60kish, rent will be 1400, taxes only 2kish, value about 125k, not to bad. Its all about you network 

    All the best  

    Hi Bob, I would love to connect... I have put together an extensive list of markets to evaluate and am having a difficult time finding anything that comes close to that 1-2%.  Thanks for your reply.

     Its all about you network, and knowledge. Yesterday I picked up a  7 unit all in 200k, rents 46k gross ( 6 x 550 1 at 800)  with a net of about 34k, not so bad,,,,,, 

    All the best , 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.