Realistic timeframe to get to $1,000/month starting with $5,000
Hi guys,
I'm looking into non-local note investing as a means of achieving a 2nd income. $1,000 a month would be great and pay much of my monthly expenses, so that is my first goal.
I listened to Dave's book in the car but haven't had the time to fully process the information. What I've loosely gathered is below, can anyone tell me if these figures are in the ballpark?
-- I start with $5,000 and spend a few weeks looking for note brokers.
-- Invest into a $5k note yielding 15% per year, or about $750 per year, $60 per month.
-- Look for opportunities to recapitalize, either by raising private money (unlikely this early on) or "collateral assignment" loans to borrow at, maybe 7.5% while re-lending at 15%.
-- I keep doing this until I go from $60 a month to $830 a month, which would take 28 investments assuming they were all $5k notes yielding net 7.5%. If I acquire 1 new note every 3 months, it will take 7 years to hit my initial target.
I know this doesn't include notes that turn NPN, I'll have to read more about that. Are the numbers and timeframe roughly in line though?
Thanks