Paralyzed On Where To Use $100k

Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes

So, if you look at my profile you'll seen I've been on BP awhile. Most of it was come and go. When I was here last BT was still a good name and BP hadn't been sold out. Anyways, throughout life I never had income, money, and credit. Now, having read many BT/BP books, Codie Sanchez, Walker Deibel, I'm in a different position in life. I have good income >100k+ for three years, 700+ credit with no negatives (some lates over 7 years), and $100k in cash after making the hard decision to sell my dads house and truck and close out probate. I'm looking at acquisitions via SBA7a loans as the COC is the best and I'm a sucker for cash flow and anticipate real estate as a longer game but businesses as more of a snowball, but I'm paralyzed. This is my one chance to set myself up for success. My DTI is low and I'm living very minimally, with monthly expenses under $2500. I could pay off my two vehicles and buy a nice fifth wheel with cash and live completely debt free and start saving my income for something big - but I'd like to finally turn some wheels and DO something. However, I'm scared to make a wrong turn and every guru out there wants to sell me a course from $50-$10,000 and leave me with more questions than answers. I don't know what to do but I don't want to misstep and piss away this opportunity.

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

2mo

You seem drawn to gurus and get rich quick schemes. From what I remember you have a strong and stable career, which makes you an ideal candidate to buy quality, lower risk assets slowly over time. You do not need to swing for the fences, nor should you.

Slow, steady and sustainable is the recipe for success, but it is difficult to follow without a stable source of income. You are fortunate to have that. Lose the obsession with immediate cash flow. When you buy quality assets, appreciation and principal paydown can become meaningful, even life changing, if you are patient with far less risk.

Now is the time to be conservative and build a solid foundation. If you eventually want to experiment with riskier business strategies, do it after you have built a stable portfolio of quality real estate assets leveraged at 50 to 60 percent. At that point, missing an investment opportunity or having one fail will be far less consequential.

[email protected]

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Jamie Parker
Real Estate Investor · Memphis, TN · Member since 2016 · 433 posts · 142 votes
2mo
You mentioned a SBA7a I know a guy in my market that actually acquired one of the loans recently. He has about 10 rentals and a construction company. I think he used the SBA7a loan for the construction company. I think he has become a city vendor or something.
I have been looking at Businesses for sale in my market. There is this glass company thats for sale, 200k. Basically the old man is retiring and leaving the son as the Operations manager. Good revenue. with a SBA7a Loan you could buy a business thats small with management thats staying. Seller financing may be available and you could walk into it with minimum money down.
Multifamily Real Estate Is a business and real estate wrapped into one. If you are a RE Agent would you want to flip houses or buy rentals,
0 Reply
- Jamie Parker
  Real Estate Investor · Memphis, TN · Member since 2016 · 433 posts · 142 votes
  2mo
  
  @Jason Eyerly
  
  Sorry about your father passing. 100k is a good chunk of change. Remember, you dont have to do anything, retirement accounts, S&P, etc there are places it can go. I think you would be better suited if found a partner that you trust. You don't have to go at it alone. Join local networking groups for either business or real estate. Get around some people that you can talk it out with. Also people that my take interest in what your goals and would like to tackle those goals in tandem with your.
  
  0 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Jamie Parker:
  
  @Jason Eyerly
  
  Sorry about your father passing. 100k is a good chunk of change. Remember, you dont have to do anything, retirement accounts, S&P, etc there are places it can go. I think you would be better suited if found a partner that you trust. You don't have to go at it alone. Join local networking groups for either business or real estate. Get around some people that you can talk it out with. Also people that my take interest in what your goals and would like to tackle those goals in tandem with your.
  
  I feel like this is solid advise. Once I get back home I was thinking about finding some networking groups just to find some like minded people because I'm out here solo right now. My friend group couldn't even begin to think about trying something like this.
  1 Reply
- Jamie Parker
  Real Estate Investor · Memphis, TN · Member since 2016 · 433 posts · 142 votes
  2mo
  @Jason Eyerly
  someone in the thread mentioned that you missed the last real estate boom during covid. I am also one of those people. I was wholesaling from 2016-2019 and had to take a step back. Fortunately for me, I wanted to get into Multifamily Investing. At that time there are many investors that are losing their shirts. Point Im making is, You have the ability to start when ever. I am one week out from closing on my first fix and flip. I am also raising capital for the first time. Real Estate is a team sport, so look for others to work with. IF you want to come to memphis and see what we are building here, feel free.
  0 Reply
G. Brian DavisPro Member
Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 886 votes
2mo
Hey @Jason Eyerly, I’d be careful about viewing this as your “one chance.” That mindset can create pressure. You’re in a great position. If you’re looking at SBA acquisitions, I’d spend more time now looking at actual businesses. Underwrite 10-30 deals, take the seller’s financials and look closely at revenue, actual operating expenses, cash flow, what your SBA loan payments would be, and what’s really left for you afterward.

Then stress-test the deal. What happens if revenue drops 10-20%, you lose a major customer, or expenses are higher than expected? I’d also verify the seller’s numbers against tax returns and bank statements rather than relying on projections. Do this and you’ll start developing a pretty good sense for which deals have a margin for error and which only work if everything goes right. Also, talk to lenders, brokers, and owners, and learn what $100K can realistically buy while still keeping a healthy reserve.

2 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
You seem drawn to gurus and get rich quick schemes. From what I remember you have a strong and stable career, which makes you an ideal candidate to buy quality, lower risk assets slowly over time. You do not need to swing for the fences, nor should you.

Slow, steady and sustainable is the recipe for success, but it is difficult to follow without a stable source of income. You are fortunate to have that. Lose the obsession with immediate cash flow. When you buy quality assets, appreciation and principal paydown can become meaningful, even life changing, if you are patient with far less risk.

Now is the time to be conservative and build a solid foundation. If you eventually want to experiment with riskier business strategies, do it after you have built a stable portfolio of quality real estate assets leveraged at 50 to 60 percent. At that point, missing an investment opportunity or having one fail will be far less consequential.
[email protected]
9 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Stuart Udis:
  
  You seem drawn to gurus and get rich quick schemes. From what I remember you have a strong and stable career, which makes you an ideal candidate to buy quality, lower risk assets slowly over time. You do not need to swing for the fences, nor should you.
  
  Slow, steady and sustainable is the recipe for success, but it is difficult to follow without a stable source of income. You are fortunate to have that. Lose the obsession with immediate cash flow. When you buy quality assets, appreciation and principal paydown can become meaningful, even life changing, if you are patient with far less risk.
  
  Now is the time to be conservative and build a solid foundation. If you eventually want to experiment with riskier business strategies, do it after you have built a stable portfolio of quality real estate assets leveraged at 50 to 60 percent. At that point, missing an investment opportunity or having one fail will be far less consequential.
  
  I wouldn't say I'm drawn to gurus. I'm trying to learn what I wasn't taught in school about finance and investing. I'm trying to increase my cashflow more than $150/month/door. I'm not trying to build for when I'm 65-80. I see the worst of health often and I'm not optimistic on reaching that number, let alone when my best days are behind me, to be comfortable. When I learn or hear about investment tactics, I read a book and look into it "Small Business Buying Guide" and Walker Deibels "Buy Then Build". Inevitably, gurus pop up. I'm yet to spend money on a single one.
  0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
2mo
I'd first look at house hacking a 2-4 unit. During that learn and do BRRRs/Flips once you have experience
1 Reply
Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 votes
2mo
Hi Jason from Charleston, South Carolina-
I am sorry to hear of your father's passing. You have inherited 100K after closing out his estate and are looking to be a wise steward with this resource and are looking at real estate and/or a business to invest in.
Seems like you could start a low cost startup service business that you would not mind doing like auto detailing, lawn care/landscaping, or exterior cleaning/maintenance for active income that you could pay yourself back pretty quick and have positive cash flow then consider using some to buy a house you can live in and rent out rooms or other units as it would require less down as you primary residence.
This would allow you to grow your active income, have a place to live, and benefit from the tax benefits of and the real estate increasing in value over time.
Then, you could move and do the same thing again in a year or two and hopefully your business will be growing as well.
To Your Success!
1 Reply
Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 3k+ votes
2mo
If you are serious about real estate, I'd suggest the following: take map, draw a circle around your present home location that is a 20-minute diameter. Concentrate inside that circle, and start physically going and inspecting property.

Connect with an agent or three so you can see active listings, closed sales, and expired listings. Don't forget FSBO's. Get into as many as possible. Walk thru, take notes and photos if possible. Ask questions. You'll get the idea of what to look for and what is out of place.

After inspecting 100 properties, you'll be an expert in your area--sometimes more experienced than many agents in your area. Think that's a lot? Think: 2/day, 5 days = 10/week. In 2.5 months you'll be able to windshield a property in about a 15 second drive by.

You'll understand your market segment, pricing, and value. When you see a bargain opportunity, you'll KNOW IT! (After inspecting 100 properties, you would have stumbled over several good opportunities.)

Go slow, be patient and thorough. You'll have product knowledge--and that's where better investing starts.

Good luck.
1 Reply
Timothy W Hanson
Investor · Minnesota/Wisconsin/Iowa · Member since 2019 · 49 posts · 77 votes
2mo
Are SBA7a loans prohibited from being used on passive income real estate?

I've looked at businesses for sale. I found them on local business broker's websites. The businesses I saw were restaurants, coin operated laundry (which sometimes were sold with the building), excavating companies, landscaping companies, and car dealerships. They all seemed overpriced to me.

I believe the best move is to buy a fourplex (Most loan options available). I would begin looking into larger multi-family after that, the fourplex will give you invaluable experience while you simultaneously set aside cash for a larger purchase. Ideally, you then buy a 8-20 unit building, and then the rents go up, and that's how you retire early.
0 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
2mo
Quote from @Jason Eyerly:

So, if you look at my profile you'll seen I've been on BP awhile. Most of it was come and go. When I was here last BT was still a good name and BP hadn't been sold out. Anyways, throughout life I never had income, money, and credit. Now, having read many BT/BP books, Codie Sanchez, Walker Deibel, I'm in a different position in life. I have good income >100k+ for three years, 700+ credit with no negatives (some lates over 7 years), and $100k in cash after making the hard decision to sell my dads house and truck and close out probate. I'm looking at acquisitions via SBA7a loans as the COC is the best and I'm a sucker for cash flow and anticipate real estate as a longer game but businesses as more of a snowball, but I'm paralyzed. This is my one chance to set myself up for success. My DTI is low and I'm living very minimally, with monthly expenses under $2500. I could pay off my two vehicles and buy a nice fifth wheel with cash and live completely debt free and start saving my income for something big - but I'd like to finally turn some wheels and DO something. However, I'm scared to make a wrong turn and every guru out there wants to sell me a course from $50-$10,000 and leave me with more questions than answers. I don't know what to do but I don't want to misstep and piss away this opportunity.
One option some people take is buying off market properties for below cost and turning them into rentals. I personally resell then as lease options, I avoid the hassles of tenants and I don't need a property manager. There are several options available to you depending on goals and lifestyle.
1 Reply
Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
2mo
@Jason Eyerly a lot of people above are saying things to encourage you and to help you feel better. I'm not. You are the classic analysis by paralysis guy. You say you have been on BP for what, 8 - 10 years? And you haven't purchased anything. You missed the the massive Covid inflation bump. I'm sure you have an excuse, I'm sorry, REASON, why. But it doesn't matter the reason or the excuse. The fact remains that you missed some awesome years of appreciation. Let that sink in until it feels uncomfortable. Your profile shows that you are in South Carolina. I have a buddy investor in South Carolina that has done really well. So that is a good enough market to have made a lot of money.

If you had started investing by following the advice of Brandon Turner (you say before he sold out) then you could have picked up 4 or 5 BRRRR properties before Covid and you could be sitting on $500,000 of equity by now. A HALF OF A MILLION DOLLARS! You should be kicking your self right now. You were in the right place at the right time and you blew it! You did nothing. I heaitate to say you are going to do something now.

You criticize people who have actually done things and you vilify people who charge for their services. That negativity will do 2 things. It will justify to yourself inaction and then it will come up with excuses to try to comfort yourself and make you feel better rather than tell you that truth. Your brain is sabotaging yourself. It has a belief of where you should be financially and it doesn't feel comfortable with the idea of you being wealthy. Case and point, look at your friends. You stated that they "couldn't even begin to think about trying something like this." Your brain doesn't want you to lose your friends. It is going to sabotage you here as well so you can keep fitting in so you don't lose your friend group.

You have 6 posts man. With or without the $100,000, I predict that we will see another post from you in 8 - 10 years that says the same thing. "I have been on here on and off here awhile and still haven't bought anything." Why is that? Because the best predictor of future behavior is past behavior. If you do what your have always done, then you will get what you've alway got! Which at this point is NOTHING when it comes to real estate.

Imagine owing a small portfolio that wasn't really that difficult to get and having a half of a million dollars right now in equity. What would that be like? What would that feel like? How would your life be different with half of a million dollars of equity? To know that you own properties. There are houses out that with your name or LLC on the deed. And you own the land on which those houses sit. You are a land owner. It breings with it a sense of accomplishment. You have proof that you were here. That you made a decision and did something!

Your best bet is to take that $100,000 and go put it in a CD earning 3% for a year. And then stop hanging out with your loser friends. Then, if you don't trust someone who has done it to walk you through it because they are all "sell outs that want to charge you $50 - $10,000," then just listen to 2-3 real estate podcasts a day (no social media or Netflix), and go to at lease 2-3 meetups a week, even if that means you have to travel. Set up lunches with 1-2 investors every week and ask them how they source their deals today. Then ask if they could give you one contact of someone that helps them buy good deals. Then contact whoever that person is and introduce yourself and ask them if they can add you to their email list. Go onto Facebook and join investor groups in the area you want to invest in. Gather together your resourses (but not the $100,000. That stays in the bank to stare at you and call you names until you can stare back at it and prove that you could have bought properties the whole time without its help!) Then start running numbers and make offers that make sense everyday! Send text messages to realtors whose info you will find on the Zillow listings for properties you want to make offers on. Respond to wholesaler emails with offers on properties that make sense to you. But the point is to do this every day until you buy your first property and stabilize it. And then your second... and then your third and fourth and fifth. Then take out the $100,000 and show gratitude for becoming a good steward and give it a good home.

These are just my thoughts as I cringed when I read your post and the placating posts beneath it of people who wanted to help you feel better. Nonsense. Your problem isn't feeling bad, you should feel bad. And you should allow that feeling to get you off your butt and get you into action. But what do I know. I've only owned hundreds of properties and became, what did you call them, oh yeah "sell outs."

Let this is your wake up call. Get off your butt.
480-206-1209 Podcast Guest on Show #287
3 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Shiloh Lundahl:
  
  @Jason Eyerly a lot of people above are saying things to encourage you and to help you feel better. I'm not. You are the classic analysis by paralysis guy. You say you have been on BP for what, 8 - 10 years? And you haven't purchased anything. You missed the the massive Covid inflation bump. I'm sure you have an excuse, I'm sorry, REASON, why. But it doesn't matter the reason or the excuse. The fact remains that you missed some awesome years of appreciation. Let that sink in until it feels uncomfortable. Your profile shows that you are in South Carolina. I have a buddy investor in South Carolina that has done really well. So that is a good enough market to have made a lot of money.
  
  If you had started investing by following the advice of Brandon Turner (you say before he sold out) then you could have picked up 4 or 5 BRRRR properties before Covid and you could be sitting on $500,000 of equity by now. A HALF OF A MILLION DOLLARS! You should be kicking your self right now. You were in the right place at the right time and you blew it! You did nothing. I heaitate to say you are going to do something now.
  
  You criticize people who have actually done things and you vilify people who charge for their services. That negativity will do 2 things. It will justify to yourself inaction and then it will come up with excuses to try to comfort yourself and make you feel better rather than tell you that truth. Your brain is sabotaging yourself. It has a belief of where you should be financially and it doesn't feel comfortable with the idea of you being wealthy. Case and point, look at your friends. You stated that they "couldn't even begin to think about trying something like this." Your brain doesn't want you to lose your friends. It is going to sabotage you here as well so you can keep fitting in so you don't lose your friend group.
  
  You have 6 posts man. With or without the $100,000, I predict that we will see another post from you in 8 - 10 years that says the same thing. "I have been on here on and off here awhile and still haven't bought anything." Why is that? Because the best predictor of future behavior is past behavior. If you do what your have always done, then you will get what you've alway got! Which at this point is NOTHING when it comes to real estate.
  
  Imagine owing a small portfolio that wasn't really that difficult to get and having a half of a million dollars right now in equity. What would that be like? What would that feel like? How would your life be different with half of a million dollars of equity? To know that you own properties. There are houses out that with your name or LLC on the deed. And you own the land on which those houses sit. You are a land owner. It breings with it a sense of accomplishment. You have proof that you were here. That you made a decision and did something!
  
  Your best bet is to take that $100,000 and go put it in a CD earning 3% for a year. And then stop hanging out with your loser friends. Then, if you don't trust someone who has done it to walk you through it because they are all "sell outs that want to charge you $50 - $10,000," then just listen to 2-3 real estate podcasts a day (no social media or Netflix), and go to at lease 2-3 meetups a week, even if that means you have to travel. Set up lunches with 1-2 investors every week and ask them how they source their deals today. Then ask if they could give you one contact of someone that helps them buy good deals. Then contact whoever that person is and introduce yourself and ask them if they can add you to their email list. Go onto Facebook and join investor groups in the area you want to invest in. Gather together your resourses (but not the $100,000. That stays in the bank to stare at you and call you names until you can stare back at it and prove that you could have bought properties the whole time without its help!) Then start running numbers and make offers that make sense everyday! Send text messages to realtors whose info you will find on the Zillow listings for properties you want to make offers on. Respond to wholesaler emails with offers on properties that make sense to you. But the point is to do this every day until you buy your first property and stabilize it. And then your second... and then your third and fourth and fifth. Then take out the $100,000 and show gratitude for becoming a good steward and give it a good home.
  
  These are just my thoughts as I cringed when I read your post and the placating posts beneath it of people who wanted to help you feel better. Nonsense. Your problem isn't feeling bad, you should feel bad. And you should allow that feeling to get you off your butt and get you into action. But what do I know. I've only owned hundreds of properties and became, what did you call them, oh yeah "sell outs."
  
  Let this is your wake up call. Get off your butt.
  
  What a long winded way to say you didn't read anything I wrote. If I had the credit, income, and cash years ago I'd have done it then. As stated, if you read it, that's not the case now so I'm looking to engage it. I don't feel bad at all so maybe write ten more pages and try a little harder.
  1 Reply
- Shiloh LundahlPro Member
  Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
  2mo
  @Jason Eyerly after rereading what you wrote in this thread to make sure I didn't miss anything, it would appear that I was wrong. It seems like you got it figured out. I'm glad you're in a stronger financial situation. Good luck to you.
  480-206-1209 Podcast Guest on Show #287
  1 Reply
Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
2mo
Jason, I'd be careful not to let the pressure of having $100K available turn into a need to deploy it immediately. Having strong income, low DTI, and liquidity gives you something valuable right now: the ability to wait for a deal that actually makes sense.

If your goal is cash flow, I’d compare buying another rental with acquiring an operating business, but treat them as two very different investments. SBA 7(a) financing is designed for operating businesses and can be used for business acquisitions and certain business real estate. The SBA requires the borrower to be an operating, for-profit business, so I would not look at 7(a) as a general financing tool for passive rental-property acquisitions.

If you do acquire a business, I’d pay just as much attention to tax due diligence as financial due diligence. In an asset acquisition, the purchase price has to be allocated among the acquired assets, and that allocation affects the buyer’s basis and future deductions or amortization.

For real estate, I’d stick with your preference for cash flow and buy something that works conservatively without depending on appreciation. If it’s held as a rental, I’d also evaluate cost segregation once it is placed in service, but only after determining whether you can actually use the resulting losses under the passive-loss rules.

I also would not rush into multiple LLCs just because you're investing. An LLC alone does not create the tax savings. If you buy and actively operate a profitable business, an S-Corp may eventually be worth evaluating, but that depends on the income and reasonable-compensation requirements.

I’d protect a meaningful liquidity reserve, define exactly what return and workload you want, and then let the right opportunity compete for the capital instead of forcing the $100K into something.

Happy to connect!
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1 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Ashish Acharya:
  
  Jason, I'd be careful not to let the pressure of having $100K available turn into a need to deploy it immediately. Having strong income, low DTI, and liquidity gives you something valuable right now: the ability to wait for a deal that actually makes sense.
  
  If your goal is cash flow, I’d compare buying another rental with acquiring an operating business, but treat them as two very different investments. SBA 7(a) financing is designed for operating businesses and can be used for business acquisitions and certain business real estate. The SBA requires the borrower to be an operating, for-profit business, so I would not look at 7(a) as a general financing tool for passive rental-property acquisitions.
  
  If you do acquire a business, I’d pay just as much attention to tax due diligence as financial due diligence. In an asset acquisition, the purchase price has to be allocated among the acquired assets, and that allocation affects the buyer’s basis and future deductions or amortization.
  
  For real estate, I’d stick with your preference for cash flow and buy something that works conservatively without depending on appreciation. If it’s held as a rental, I’d also evaluate cost segregation once it is placed in service, but only after determining whether you can actually use the resulting losses under the passive-loss rules.
  
  I also would not rush into multiple LLCs just because you're investing. An LLC alone does not create the tax savings. If you buy and actively operate a profitable business, an S-Corp may eventually be worth evaluating, but that depends on the income and reasonable-compensation requirements.
  
  I’d protect a meaningful liquidity reserve, define exactly what return and workload you want, and then let the right opportunity compete for the capital instead of forcing the $100K into something.
  
  Happy to connect!
  
  I'll take you up on this. I've been needing to chat with a CPA for awhile. Thanks for the candid and thoughtful response.
  0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2mo
@Jason Eyerly
hi Jason. welcome back and kudos on getting through some of the challenges you mentioned. i'm going to throw out some random things and if you've thought of all of them already, OK.
-can you house hack? it seems like this could be a good fit for someone in your situation (unless you just don't want to for lifestyle reasons, which is totally fair.) there are several people in my network who sequentially house hacked 2-10 times, and built up a real estate portfolio solely by using their monthly housing expense (which almost everyone has.) this isn't a get rich by 35 strategy, but nor is it a wait until 65 strategy. again, in 5-10 years, you could have a small portfolio just by doing this. a portfolio gives you options - you can sell, refinance, 1031, keep going, etc.
-it's great that you're interested in acquiring a business. i think there's a lot of opportunity to do this right now. if you're not already i'd be networking with other people looking to do this - not just online but real live humans looking to do the same thing. if you can't find a group that's doing this start your own.
-don't buy a course. there's just no reason to. i'm not saying no course or program is valuable - how could i know that? i just don't think you're at the right point for it.
-if you own a couple rentals and have a few hundred thousand cash, you're ahead of probably 99% of people. the median age of a first time home buyer in the US is now 38 or 40.
hope this helps
0 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Nicholas L.:
  
  @Jason Eyerly
  hi Jason. welcome back and kudos on getting through some of the challenges you mentioned. i'm going to throw out some random things and if you've thought of all of them already, OK.
  -can you house hack? it seems like this could be a good fit for someone in your situation (unless you just don't want to for lifestyle reasons, which is totally fair.) there are several people in my network who sequentially house hacked 2-10 times, and built up a real estate portfolio solely by using their monthly housing expense (which almost everyone has.) this isn't a get rich by 35 strategy, but nor is it a wait until 65 strategy. again, in 5-10 years, you could have a small portfolio just by doing this. a portfolio gives you options - you can sell, refinance, 1031, keep going, etc.
  -it's great that you're interested in acquiring a business. i think there's a lot of opportunity to do this right now. if you're not already i'd be networking with other people looking to do this - not just online but real live humans looking to do the same thing. if you can't find a group that's doing this start your own.
  -don't buy a course. there's just no reason to. i'm not saying no course or program is valuable - how could i know that? i just don't think you're at the right point for it.
  -if you own a couple rentals and have a few hundred thousand cash, you're ahead of probably 99% of people. the median age of a first time home buyer in the US is now 38 or 40.
  hope this helps
  
  I thought about a 4 unit house hack if I can legally get away with putting my unit on Airbnb as I am gone 300 days a year. Travel nursing and wildland fire keeps me annywhere but. Living in a fifth wheel is great!
  0 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
@Jason Eyerly You are focused on the $150 per unit in monthly cash flow, but that is not what successful real estate investing is built upon. The real opportunity is the ability to use leverage to generate meaningful returns through value add, forced appreciation, market appreciation, principal paydown, and tax benefits, particularly for someone like you with a solid W-2 income.

You say you are not drawn to gurus, but almost everything you say suggests otherwise. You are exactly the type of impressionable person their marketing is designed to reach. The sooner you recognize that, the better off you will be. The fact pattern you laid out of your current situation, while drastically improved from the last time you were posting does not support the more aggressive strategies you are trying to pursue. You focus exclusively on upside with no consideration for downside risk.
[email protected]
0 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Stuart Udis:
  
  @Jason Eyerly You are focused on the $150 per unit in monthly cash flow, but that is not what successful real estate investing is built upon. The real opportunity is the ability to use leverage to generate meaningful returns through value add, forced appreciation, market appreciation, principal paydown, and tax benefits, particularly for someone like you with a solid W-2 income.
  
  You say you are not drawn to gurus, but almost everything you say suggests otherwise. You are exactly the type of impressionable person their marketing is designed to reach. The sooner you recognize that, the better off you will be. The fact pattern you laid out of your current situation, while drastically improved from the last time you were posting does not support the more aggressive strategies you are trying to pursue. You focus exclusively on upside with no consideration for downside risk.
  
  I focus on cash flow because I work so much. 90-110 days a year I'm on fires sleeping in a tent. Outside of that I'm doing 24-48 hours in flight medicine. Somewhere in there I fit school, clinicals, and ICU time. I make good money, but I don't want to work like this forever. I've been at it 3 years and I want to slow it down dramatically but I'm terrified of being broke again. Whoever said money doesn't buy happiness has never been broke. Financial peace of mind is worth more than gold to me - which why I considered a fifth wheel with cash and paying off the two cars. I'd have like $10k left but I'd owe nobody a damn thing and anything I made I could save or invest. But, at least for me, saving $100k is no easy feat so I'm very focused on CoC return. So, I also considered an FHA for a 4-unit (found some near me I like for $750,000) which at 3.5% is a very doable down payment and puts my unit "rent" at $700 I think if I remember correctly. Then, I have capital for fix and flips which gives me the CoC return I'm looking for, so long as I can refi out what I put in at least.
  1 Reply
- Jamie Parker
  Real Estate Investor · Memphis, TN · Member since 2016 · 433 posts · 142 votes
  2mo
  Quote from @Jason Eyerly:
  
  @Jason Eyerly this shines more light on why you are so cautious. Going back to being broke can be a fear, or motivation. You mentioned Cash on Cash Return. That is a strong metric to use to understand how quickly your invested capital is returned.
  A little food for thought, FHA is a good way to purchase with minimal capital invested. however in the event the market shifts, a higher down payment gives you a larger buffer to protect your equity against downswings in the Real Estate market.
  0 Reply
- Jason Eyerly
  OP
  Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
  2mo
  Quote from @Jamie Parker:
  
  Quote from @Jason Eyerly:
  
  @Jason Eyerly this shines more light on why you are so cautious. Going back to being broke can be a fear, or motivation. You mentioned Cash on Cash Return. That is a strong metric to use to understand how quickly your invested capital is returned.
  A little food for thought, FHA is a good way to purchase with minimal capital invested. however in the event the market shifts, a higher down payment gives you a larger buffer to protect your equity against downswings in the Real Estate market.
  
  Downswing is only a concern if you're planning a short term hold though, correct?
  0 Reply
- Jamie Parker
  Real Estate Investor · Memphis, TN · Member since 2016 · 433 posts · 142 votes
  2mo
  @Jason Eyerly
  
  That is true. I like the business concepts that @Stuart Udis is putting across. Hire management and the asset is about as passive as it gets. Partnerships can create that type of autonomy.
  0 Reply
Dan HandfordPro Member
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
2mo
The best cure for this kind of paralysis is to separate learning decisions from irreversible capital decisions. First, ring-fence the cash you need for personal reserves, probate-related surprises, and several months of living expenses. Then set a maximum amount you are willing to expose to the first investment, including working capital and overruns. Before buying anything, underwrite a fixed number of real opportunities, perhaps 20 businesses and 20 properties, using the same downside assumptions. Track the expected return, time commitment, liquidity, guarantees, and what happens if revenue or rent falls 20 percent. You do not need to deploy all $100,000 to begin moving forward. A smaller first decision that preserves optionality can teach you more than another course while keeping one mistake from consuming the entire opportunity.
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2mo
Quote from @Jason Eyerly:

So, if you look at my profile you'll seen I've been on BP awhile. Most of it was come and go. When I was here last BT was still a good name and BP hadn't been sold out. Anyways, throughout life I never had income, money, and credit. Now, having read many BT/BP books, Codie Sanchez, Walker Deibel, I'm in a different position in life. I have good income >100k+ for three years, 700+ credit with no negatives (some lates over 7 years), and $100k in cash after making the hard decision to sell my dads house and truck and close out probate. I'm looking at acquisitions via SBA7a loans as the COC is the best and I'm a sucker for cash flow and anticipate real estate as a longer game but businesses as more of a snowball, but I'm paralyzed. This is my one chance to set myself up for success. My DTI is low and I'm living very minimally, with monthly expenses under $2500. I could pay off my two vehicles and buy a nice fifth wheel with cash and live completely debt free and start saving my income for something big - but I'd like to finally turn some wheels and DO something. However, I'm scared to make a wrong turn and every guru out there wants to sell me a course from $50-$10,000 and leave me with more questions than answers. I don't know what to do but I don't want to misstep and piss away this opportunity.

You are right: real estate is not that great with cash flow, a small business will work much better, because it is literally designed for cash flow (real estate is much better creating net worth than a biz, that's the catch). So I am glad you are listening to Cody. Maybe you can find something where your personal background provides you with an "unfair advantage" - like in the medical field
But you don't have just one shot, that creates unnecessary pressure and of course you feel paralyzed. Here is the thing: having a windfall in the bank does NOT make you an investor. You become an investor by changing what's inside your head, not what's inside your bank account. And this is not some woo-woo mindset BS: it's more that your brain has been trained enough on investing that you start seeing opportunities everywhere.
Networking groups are fine, but be cautious about partnering with someone. Most partnerships end badly, often in court. I would rather lean into AI for being a coach and mentor. Here is a prompt you can use: it will start asking you a lot of questions to really understand you and your capabilities, before getting to part 2 and supporting you. Keep this chat around, it will only get to be better the longer you interact with it.

Here is a prompt designed to configure an AI into a high-stakes, balanced business coach:
# System Prompt: Elite Business Coach & Mentor ## Role & Mission You are an elite, seasoned business strategist, executive coach, and mentor. Your goal is to help the user identify their exact competitive edge, address critical skill gaps, and scale their business or career. You act with the empathetic, long-term perspective of a mentor combined with the rigorous, high-accountability focus of a top-tier coach. --- ## Phase 1: Intake & Profiling (DO NOT SKIP) Before offering strategy, solutions, or deep advice, you must ask targeted, probing questions to diagnose the user’s current position. Keep this phase brief, structured, and focused. Ask 1-2 questions at a time across these categories until you have enough clarity: 1. **Superpowers & Core Strengths:** What unique skills, deep subject expertise, or natural advantages give them an unfair edge? 2. **Shortfalls & Blind Spots:** Where do they struggle, procrastinate, avoid execution, or lack key capabilities? 3. **Current Landscape & Goals:** What is their business model/role, revenue/career goal, and immediate primary bottleneck? --- ## Phase 2: Dual-Pillar Coaching Style Once the profile is established, shift into active coaching. Maintain a strict balance between two modes: ### 1. The Supportive Mentor * Celebrate genuine wins and validate calculated risk-taking. * Offer perspective during setbacks; reframe failures as technical feedback. * Remind the user of their core strengths when self-doubt or fatigue sets in. ### 2. The Ruthless Critic * Call out weak logic, vague plans, uncalculated risks, and excuses instantly. * Demand concrete metrics, realistic timelines, and clear execution steps. * Do not allow fluff, buzzwords, or optimistic hand-waving—challenge every assumption. --- ## Behavioral Guardrails * **No Unearned Praise:** Do not validate ideas just to be polite. If an idea is flawed, state why immediately. * **Direct & Action-Oriented:** Keep responses tight, punchy, and structured. End key turns with a direct, challenging question or single action step. * **Adaptability:** Adjust the level of critique based on performance. If the user is executing well, lean supportive; if they are stalling or making careless mistakes, dial up the criticism. --- ## Kickoff Execution Start the conversation immediately by introducing yourself briefly, setting expectations for your direct style, and asking your first set of intake questions to understand their core skills and primary business focus.
1 Reply
- Jason Eyerly
 OP
 Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
 2mo
 Quote from @Marcus Auerbach:
 
 Quote from @Jason Eyerly:
 
 So, if you look at my profile you'll seen I've been on BP awhile. Most of it was come and go. When I was here last BT was still a good name and BP hadn't been sold out. Anyways, throughout life I never had income, money, and credit. Now, having read many BT/BP books, Codie Sanchez, Walker Deibel, I'm in a different position in life. I have good income >100k+ for three years, 700+ credit with no negatives (some lates over 7 years), and $100k in cash after making the hard decision to sell my dads house and truck and close out probate. I'm looking at acquisitions via SBA7a loans as the COC is the best and I'm a sucker for cash flow and anticipate real estate as a longer game but businesses as more of a snowball, but I'm paralyzed. This is my one chance to set myself up for success. My DTI is low and I'm living very minimally, with monthly expenses under $2500. I could pay off my two vehicles and buy a nice fifth wheel with cash and live completely debt free and start saving my income for something big - but I'd like to finally turn some wheels and DO something. However, I'm scared to make a wrong turn and every guru out there wants to sell me a course from $50-$10,000 and leave me with more questions than answers. I don't know what to do but I don't want to misstep and piss away this opportunity.
 
 You are right: real estate is not that great with cash flow, a small business will work much better, because it is literally designed for cash flow (real estate is much better creating net worth than a biz, that's the catch). So I am glad you are listening to Cody. Maybe you can find something where your personal background provides you with an "unfair advantage" - like in the medical field
 But you don't have just one shot, that creates unnecessary pressure and of course you feel paralyzed. Here is the thing: having a windfall in the bank does NOT make you an investor. You become an investor by changing what's inside your head, not what's inside your bank account. And this is not some woo-woo mindset BS: it's more that your brain has been trained enough on investing that you start seeing opportunities everywhere.
 Networking groups are fine, but be cautious about partnering with someone. Most partnerships end badly, often in court. I would rather lean into AI for being a coach and mentor. Here is a prompt you can use: it will start asking you a lot of questions to really understand you and your capabilities, before getting to part 2 and supporting you. Keep this chat around, it will only get to be better the longer you interact with it.
 
 Here is a prompt designed to configure an AI into a high-stakes, balanced business coach:
 # System Prompt: Elite Business Coach & Mentor ## Role & Mission You are an elite, seasoned business strategist, executive coach, and mentor. Your goal is to help the user identify their exact competitive edge, address critical skill gaps, and scale their business or career. You act with the empathetic, long-term perspective of a mentor combined with the rigorous, high-accountability focus of a top-tier coach. --- ## Phase 1: Intake & Profiling (DO NOT SKIP) Before offering strategy, solutions, or deep advice, you must ask targeted, probing questions to diagnose the user’s current position. Keep this phase brief, structured, and focused. Ask 1-2 questions at a time across these categories until you have enough clarity: 1. **Superpowers & Core Strengths:** What unique skills, deep subject expertise, or natural advantages give them an unfair edge? 2. **Shortfalls & Blind Spots:** Where do they struggle, procrastinate, avoid execution, or lack key capabilities? 3. **Current Landscape & Goals:** What is their business model/role, revenue/career goal, and immediate primary bottleneck? --- ## Phase 2: Dual-Pillar Coaching Style Once the profile is established, shift into active coaching. Maintain a strict balance between two modes: ### 1. The Supportive Mentor * Celebrate genuine wins and validate calculated risk-taking. * Offer perspective during setbacks; reframe failures as technical feedback. * Remind the user of their core strengths when self-doubt or fatigue sets in. ### 2. The Ruthless Critic * Call out weak logic, vague plans, uncalculated risks, and excuses instantly. * Demand concrete metrics, realistic timelines, and clear execution steps. * Do not allow fluff, buzzwords, or optimistic hand-waving—challenge every assumption. --- ## Behavioral Guardrails * **No Unearned Praise:** Do not validate ideas just to be polite. If an idea is flawed, state why immediately. * **Direct & Action-Oriented:** Keep responses tight, punchy, and structured. End key turns with a direct, challenging question or single action step. * **Adaptability:** Adjust the level of critique based on performance. If the user is executing well, lean supportive; if they are stalling or making careless mistakes, dial up the criticism. --- ## Kickoff Execution Start the conversation immediately by introducing yourself briefly, setting expectations for your direct style, and asking your first set of intake questions to understand their core skills and primary business focus.
 
 If I keep living minimally and working as I do, a business cash flow could be substantial into fix and flips, DSCR purchases, etc. At least, that's my thinking. I'll give the prompt a whirl. Thanks!
 0 Reply
- Marcus Auerbach
 Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
 2mo
 Quote from @Jason Eyerly:
 
 Quote from @Marcus Auerbach:
 
 Quote from @Jason Eyerly:
 
 So, if you look at my profile you'll seen I've been on BP awhile. Most of it was come and go. When I was here last BT was still a good name and BP hadn't been sold out. Anyways, throughout life I never had income, money, and credit. Now, having read many BT/BP books, Codie Sanchez, Walker Deibel, I'm in a different position in life. I have good income >100k+ for three years, 700+ credit with no negatives (some lates over 7 years), and $100k in cash after making the hard decision to sell my dads house and truck and close out probate. I'm looking at acquisitions via SBA7a loans as the COC is the best and I'm a sucker for cash flow and anticipate real estate as a longer game but businesses as more of a snowball, but I'm paralyzed. This is my one chance to set myself up for success. My DTI is low and I'm living very minimally, with monthly expenses under $2500. I could pay off my two vehicles and buy a nice fifth wheel with cash and live completely debt free and start saving my income for something big - but I'd like to finally turn some wheels and DO something. However, I'm scared to make a wrong turn and every guru out there wants to sell me a course from $50-$10,000 and leave me with more questions than answers. I don't know what to do but I don't want to misstep and piss away this opportunity.
 
 You are right: real estate is not that great with cash flow, a small business will work much better, because it is literally designed for cash flow (real estate is much better creating net worth than a biz, that's the catch). So I am glad you are listening to Cody. Maybe you can find something where your personal background provides you with an "unfair advantage" - like in the medical field
 But you don't have just one shot, that creates unnecessary pressure and of course you feel paralyzed. Here is the thing: having a windfall in the bank does NOT make you an investor. You become an investor by changing what's inside your head, not what's inside your bank account. And this is not some woo-woo mindset BS: it's more that your brain has been trained enough on investing that you start seeing opportunities everywhere.
 Networking groups are fine, but be cautious about partnering with someone. Most partnerships end badly, often in court. I would rather lean into AI for being a coach and mentor. Here is a prompt you can use: it will start asking you a lot of questions to really understand you and your capabilities, before getting to part 2 and supporting you. Keep this chat around, it will only get to be better the longer you interact with it.
 
 Here is a prompt designed to configure an AI into a high-stakes, balanced business coach:
 # System Prompt: Elite Business Coach & Mentor ## Role & Mission You are an elite, seasoned business strategist, executive coach, and mentor. Your goal is to help the user identify their exact competitive edge, address critical skill gaps, and scale their business or career. You act with the empathetic, long-term perspective of a mentor combined with the rigorous, high-accountability focus of a top-tier coach. --- ## Phase 1: Intake & Profiling (DO NOT SKIP) Before offering strategy, solutions, or deep advice, you must ask targeted, probing questions to diagnose the user’s current position. Keep this phase brief, structured, and focused. Ask 1-2 questions at a time across these categories until you have enough clarity: 1. **Superpowers & Core Strengths:** What unique skills, deep subject expertise, or natural advantages give them an unfair edge? 2. **Shortfalls & Blind Spots:** Where do they struggle, procrastinate, avoid execution, or lack key capabilities? 3. **Current Landscape & Goals:** What is their business model/role, revenue/career goal, and immediate primary bottleneck? --- ## Phase 2: Dual-Pillar Coaching Style Once the profile is established, shift into active coaching. Maintain a strict balance between two modes: ### 1. The Supportive Mentor * Celebrate genuine wins and validate calculated risk-taking. * Offer perspective during setbacks; reframe failures as technical feedback. * Remind the user of their core strengths when self-doubt or fatigue sets in. ### 2. The Ruthless Critic * Call out weak logic, vague plans, uncalculated risks, and excuses instantly. * Demand concrete metrics, realistic timelines, and clear execution steps. * Do not allow fluff, buzzwords, or optimistic hand-waving—challenge every assumption. --- ## Behavioral Guardrails * **No Unearned Praise:** Do not validate ideas just to be polite. If an idea is flawed, state why immediately. * **Direct & Action-Oriented:** Keep responses tight, punchy, and structured. End key turns with a direct, challenging question or single action step. * **Adaptability:** Adjust the level of critique based on performance. If the user is executing well, lean supportive; if they are stalling or making careless mistakes, dial up the criticism. --- ## Kickoff Execution Start the conversation immediately by introducing yourself briefly, setting expectations for your direct style, and asking your first set of intake questions to understand their core skills and primary business focus.
 
 If I keep living minimally and working as I do, a business cash flow could be substantial into fix and flips, DSCR purchases, etc. At least, that's my thinking. I'll give the prompt a whirl. Thanks!
 
 Bad news first:
 Fix and flips is a very stressful business model that needs constant driving. You need to find a buy properties all the time, which will make you buy questionable deals. Then you have 6 months of uncertainty, then listing and waiting for a buyer while paying the bills. You don't get into systems and scale until you flip 12-24 properties at year, have a standing crew. 10-15% gross profit on 80% of the deals, 20% will lose money. Now you have to feed that beast. That is more than a full time job! The best flippers I know are really great interior designers - without that you are just doing repairs and there is no profit in that.
 DSCR purchases are 5 year commercially financed rental properties with a balloon payment at the end (instead of 30 year fixed rate). You can expect to make $200 per unit if all goes well. So you'll need at least 50 units before you are making some money. And 50 units is a full time job to manage.
 What you are really looking for is a life style and career change. That is really a separate question from your investing strategy. Not looking at them individually is a huge mistake. Just because you start investing in the stock market next week, does not mean you can quit working fires and sleeping in a tent a third of the year. And real estate takes a lot more time than investing in the stock market.
 So, what's a logical evolution for your career that will settle down your lifestyle? Where is that path leading?
 1 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
@Jason Eyerly I support purchasing an FHA property that you live in. Based on everything else you shared, the only type of investing you should be doing is low risk/low management. Not flipping, certainly not buying businesses with any guru strategies or even SBA loans if you were to qualify. You want cash flow and recurring revenue, but you are not understanding the hours that go into that. If you believe they are passive you are in for a rude awakening and you don't have capacity for active.

Flipping homes is extremely hands-on until you have systems in place, and you do not have those systems yet. There will be growing pains. The same is true of owning a small business. You are responsible for almost everything: paying bills, hiring and managing staff, ordering supplies, dealing with customers, maintaining records and solving problems as they arise. Those responsibilities remain yours until the business grows......if it's even a business model that has the capabilities to reach scale that lets you step away, or you own enough businesses to support shared upper management/fractional staffing. I can assure you, that's not the type of business opportunity available to you with $100K of liquidity.

To add some context, I am advancing two restaurant projects in mixed use buildings I own. I intentionally pursued opportunities large enough to support the cost of experienced upper management, allowing the businesses to operate without requiring my daily involvement. The $600,000 buildouts, $170,000 liquor licenses, large seating capacities and strong locations are all intended to create the required business infrastructure to generate the necessary revenue to hire qualified people to handle the day-to-day difficulties that come with operating a restaurant.

This particular business is intended to operate passively for me, but only because of the scale and structure surrounding it. The building cost $1.7 million in distressed condition, and I invested another $1.2 million renovating nine apartments, restoring the historic façade and building a first generation 115 seat restaurant with a liquor license. A credit tenant occupies the remaining ground floor space under a lease extended through 2032. Truthfully, despite the restaurant’s operating potential, I would not have taken on the perceived risk without the income from the nine apartments and credit retail tenant, while also keeping the building’s leverage below 65%.

I think it's admirable that you are entrepreneurial, but I hope you listen to the advice I gave in my first post in this forum. Build slow and steady, don't take risks. Build a foundation and then opportunities will present them to take managed risk with a strong foundation behind you to provide support.

[email protected]
3 Reply
Harri Smith
Walnut Creek, CA · Member since 2010 · 52 posts · 3 votes
2mo
After owning 8 properties, I am moving my $ into passive income like stock and ETF dividends. No headache: no tenants, no floods, no termites, you name it. For $100K, I am getting about $1K a month.
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