All Forum Posts by: Austin Fowler
Austin Fowler has started 54 posts and replied 244 times.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @Jay Hinrichs:
Quote from @James Hamling:
Quote from @Joe S.:
Quote from @James Hamling:
Ok @Austin Fowler you really want to know what I'd do if dropped $1m liquid in my hands and I gotta utilize it in Real Estate, even though all of 7 people on BP will comprehend it......
About $5k into website, 2 VA's and system.
From there 1 VA calls on active buyers agents in designated markets presenting pitch to fill my calendly.
From there I pitch my C4D program for "nearly financed" buyers. When the buyers agent get's leads, works em, and finds there buyers are oh-so-close to approval but not there, they can still earn that commission via my C4D program.
Everything would revolve around "median" world of things.
Required minimum down payment is 20%. No exceptions. Everything else, there would be guidelines but just that, guidelines and negotiable whereas down has 0-flex.
All app's via website. Va#2 process's per training.
Buyers get a pre-qual budget. Buyers agent then helps them shop for such. When they find the right one, buyers enter agreement and post held escrowed down with me. Buyers agent submits PA, myself as buyer.
At end of day, it's infinite investing, because when closing is done and all $ has cleared I am personally $0 into any property, that $1m was simply used to launch the biz and then to leverage to landing the PA's.
The tenant-buyers financed the purchase via there down, which I utilize to unlock financing on the purchase. I would be using portfolio lending on DSCR underwriting, cross securitized by, you got it, the giant pile of cash sitting in an account spinning round n round.
Now being C4D buyers there is 2 spreads. First is on purchase price, second is interest rate.
I only have to capitalize risk exposure, overhead and profits because I have $0 invested capitol. Thus a small spread can equal sizable returns.
Now if you understand the math here, buyers doing 20% down on a buy price that has a profitable margin built in, then you understand how it would be more then 20% on my actual purchase. Probably more-so 30%.
In summary, I wouldn't deploy 90% of the $1m, I would leverage the lions share of the $1m to unlock infinite returns via OPM.
And I am now well liquid to cover any potential default issues if such were to occur. But being "median" focused and with C4D buyers who put 20%+ down aka significant skin into it, well one would have to chop off there own preverbal legs to give me a bloody nose. And I'd be well liquid to more then amply take care of any bloody-nose.
My risk exposure would be less then that of standard landlording, as the tenants would have far more securitization. So risk wise, it's a low-risk strategy in real estate.
And end of day, everybody is winning, the agents win, the end buyers win, and I win.
The trick to it all is setting and keeping good fences.
100% of C4D's I have seen blow-up have all had the common component of neglect on behalf of the investor. Selling to persons they shouldn't have, under securitizing, not keeping strong fences.
There ya-go Austin, that's what I'd do. And I'd dedicate as-much-as 20hrs a week to it. I'd fund my va's for 90 days and from there forward I'd require the venture to self-fund all operations from revenues. And that would be my "stop-loss". The moment it stops self-operating, I'd end it, regardless of a causation.
Thus preserving my capitol.
Hey James, you do not have to wait to get $1 million to do one or two of deals as a test run…IMO
I think that is a very thought out plan. A couple of thoughts though. From my observation, it is harder to get a substantial down payment and a higher than market interest rate at the same time. (Maybe your market is different.)
In Texas contract for deeds are not smiled upon at least that's the word on the street. I have a number of DSCR Loans that I am nervous to wrap if I could do the C4D like you're speaking over here I would definitely consider doing it.✅
I have a friend of sorts that has wrapped some DSCR loans with no problems. I'm just a bit nervous to do so…
All very valid points Joe.
In my experience there is no shortage of person who want to buy on C4D, but those correctly capitalized, yes they are the diamonds in the rough.
And that is the entire point of C4D, in my eyes at least, it's not for everyone. C4D is "a" tool in the tool-box. It has a specific purpose, and best use. When used wrong, like a pipe wrench to pound a nail, well let's just say "results may vary" is an understatement.
My most ideal C4D buyers are self-employed, often in first years, especially when in a service industry. Think Electricians, Plumbers etc.. Where they have great enduring incomes, and immense write-off potentials. They commonly run into the problem of being told they need to take 2 years of hit's on the paperwork, use less write-off's, to more accurately show income to achieve the financing approval looking for.
I don't use C4D for buyers seeking to gain what they can't actually afford, on faith and hope that someday in the future they will.
In my experience about 95% of people first are not so welcoming or interested in C4D, and for good reason, it's lessor known and has been used and abused by nefarious persons way too often. If I get 10 minutes to discuss it, 95% become accepting. It's about doing it legally and thoroughly. I always have full closings and R.E. Attorney on every one. I encourage inspections and appraisals. Sunlight is the best disinfectant, right.
I say DSCR just for simplicity of the paperwork. Key is more on using portfolio lending. When have such a relationship with a bank, and repetition, it breeds comprehension and security. To be more exact I'd, at whatever point, utelize a commercial financing "product", but as said portfolio, with a LOC. We would close via the LOC, then they complete paperwork to then roll that next purchase into the entire whole of the financing, and replenish that LOC. The actual account with the capitol would just sit in it's account, used just as eye-candy for the PA's, and warm-fuzzy feeling for the bank I'm working with.
One may wonder "but what about when you get ____ properties in there?". Keep scale in mind, there C4D's, they ideally finance out in 3-5yrs, so there is a natural churn to it all. And a person is going to do what, as-many-as 10 a year, maybe. 50 SFH's worth isn't really all that much $ in commercial finance terms.
If your concern on wrapping DSCR is on a what-if revenues get interrupted, I'd remind that by wrapping in a grouping you lower your risk exposure. 10 SFR's on a mortgage is much safer than 1, because loss of any 1's revenue is only a loss of 10% revenues, not 100%. Same way insurance works on risk exposure.
As for not needing the $1m, I know, I do these now, and have for years, hence why I can rattle on about them, because I actually do them and am speaking from experience not theory.
Well..... except for scaling, that is theory, I am not at-scale on it, not at all, haven't tried to scale but have thought on it a few times. I don't market it at all, 100% word of mouth....
CFD or land contracts as they are called in some other states I believe had their start in the land flipping bizz when banks simply wont or very rarely will finance anyone for land purchases compared to how widely available bank money is for improved properties. Growing up in the land bizz we never did CFD we just did a Trust deed and note and deeded the property to the folks.. that was CA.. However when I got into land and timber in the PNW ( OR WA ) contract for deed or land contract ( same thing) was the preferred method to secure the seller on private sale.. I did buy a Columbia River Front home in Wa on a contract for deed a few years ago but in the same area I bought little rental house on a trust deed and note from a private seller.. So just depends.. land contract and CFD were used to circumvent foreclosures was one of the main benefits.. I think @Joe S. point about Texas is there must of been a ton of fraud and abuse with CFD and lease options is why Texas takes a hard line against them.
Would be great to get an example of the numbers of what is possible in this space.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @Ryan Spath:
Great conversation. I'm both an investor and an agent, and my passion lies in helping people enter the market through FHA financing—often by house hacking with a duplex to offset their mortgage. Beyond that, I love working with clients to scale strategically, with a goal of building 10 properties over 12–15 years and ultimately achieving financial independence.
This is the same strategy my wife and I have followed successfully. Over time, our target returns have become more conservative. Today, we look for a minimum 6% cash-on-cash returns, along with loan paydown and depreciation. We self-manage our portfolio and also guide our clients in doing the same. The approach is highly scalable, but ultimately depends on each person’s earnings, savings rate, goals, and timeline.
If we were fortunate enough to receive $1M tax-free, our plan would likely be to purchase three brand-new properties in Canyon County (Caldwell, specifically). Each could rent for roughly $2,000 per month, generating $6,000 in gross monthly income. After accounting for ~$3,500 in annual taxes and ~$900 in annual insurance per property, the net would be around $61K per year.
While that isn’t flashy, the benefit of new construction is minimal large capital expenditures for the next 8–10 years. From that $6K monthly income, we’d allocate 30% (~$1,800) to a capex reserve, leaving ~$4,200 in additional free cash flow for our family. On top of that, as active investors, we’d utilize depreciation to offset income—around $10,545 per home annually.
If additional tax sheltering were needed, we could explore leveraging two of the properties at 50%, buying four instead of three: two free and clear, and two with modest debt. That flexibility is the beauty of a conservative, scalable model.
In addition to the capex budget, what loss of rent do you estimate for vacancy? Are there any other costs of ownership that you bear? Advertising, HOA, etc?
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @James Hamling:
Quote from @Joe S.:
Quote from @James Hamling:
Ok @Austin Fowler you really want to know what I'd do if dropped $1m liquid in my hands and I gotta utilize it in Real Estate, even though all of 7 people on BP will comprehend it......
About $5k into website, 2 VA's and system.
From there 1 VA calls on active buyers agents in designated markets presenting pitch to fill my calendly.
From there I pitch my C4D program for "nearly financed" buyers. When the buyers agent get's leads, works em, and finds there buyers are oh-so-close to approval but not there, they can still earn that commission via my C4D program.
Everything would revolve around "median" world of things.
Required minimum down payment is 20%. No exceptions. Everything else, there would be guidelines but just that, guidelines and negotiable whereas down has 0-flex.
All app's via website. Va#2 process's per training.
Buyers get a pre-qual budget. Buyers agent then helps them shop for such. When they find the right one, buyers enter agreement and post held escrowed down with me. Buyers agent submits PA, myself as buyer.
At end of day, it's infinite investing, because when closing is done and all $ has cleared I am personally $0 into any property, that $1m was simply used to launch the biz and then to leverage to landing the PA's.
The tenant-buyers financed the purchase via there down, which I utilize to unlock financing on the purchase. I would be using portfolio lending on DSCR underwriting, cross securitized by, you got it, the giant pile of cash sitting in an account spinning round n round.
Now being C4D buyers there is 2 spreads. First is on purchase price, second is interest rate.
I only have to capitalize risk exposure, overhead and profits because I have $0 invested capitol. Thus a small spread can equal sizable returns.
Now if you understand the math here, buyers doing 20% down on a buy price that has a profitable margin built in, then you understand how it would be more then 20% on my actual purchase. Probably more-so 30%.
In summary, I wouldn't deploy 90% of the $1m, I would leverage the lions share of the $1m to unlock infinite returns via OPM.
And I am now well liquid to cover any potential default issues if such were to occur. But being "median" focused and with C4D buyers who put 20%+ down aka significant skin into it, well one would have to chop off there own preverbal legs to give me a bloody nose. And I'd be well liquid to more then amply take care of any bloody-nose.
My risk exposure would be less then that of standard landlording, as the tenants would have far more securitization. So risk wise, it's a low-risk strategy in real estate.
And end of day, everybody is winning, the agents win, the end buyers win, and I win.
The trick to it all is setting and keeping good fences.
100% of C4D's I have seen blow-up have all had the common component of neglect on behalf of the investor. Selling to persons they shouldn't have, under securitizing, not keeping strong fences.
There ya-go Austin, that's what I'd do. And I'd dedicate as-much-as 20hrs a week to it. I'd fund my va's for 90 days and from there forward I'd require the venture to self-fund all operations from revenues. And that would be my "stop-loss". The moment it stops self-operating, I'd end it, regardless of a causation.
Thus preserving my capitol.
Hey James, you do not have to wait to get $1 million to do one or two of deals as a test run…IMO
I think that is a very thought out plan. A couple of thoughts though. From my observation, it is harder to get a substantial down payment and a higher than market interest rate at the same time. (Maybe your market is different.)
In Texas contract for deeds are not smiled upon at least that's the word on the street. I have a number of DSCR Loans that I am nervous to wrap if I could do the C4D like you're speaking over here I would definitely consider doing it.✅
I have a friend of sorts that has wrapped some DSCR loans with no problems. I'm just a bit nervous to do so…
All very valid points Joe.
In my experience there is no shortage of person who want to buy on C4D, but those correctly capitalized, yes they are the diamonds in the rough.
And that is the entire point of C4D, in my eyes at least, it's not for everyone. C4D is "a" tool in the tool-box. It has a specific purpose, and best use. When used wrong, like a pipe wrench to pound a nail, well let's just say "results may vary" is an understatement.
My most ideal C4D buyers are self-employed, often in first years, especially when in a service industry. Think Electricians, Plumbers etc.. Where they have great enduring incomes, and immense write-off potentials. They commonly run into the problem of being told they need to take 2 years of hit's on the paperwork, use less write-off's, to more accurately show income to achieve the financing approval looking for.
I don't use C4D for buyers seeking to gain what they can't actually afford, on faith and hope that someday in the future they will.
In my experience about 95% of people first are not so welcoming or interested in C4D, and for good reason, it's lessor known and has been used and abused by nefarious persons way too often. If I get 10 minutes to discuss it, 95% become accepting. It's about doing it legally and thoroughly. I always have full closings and R.E. Attorney on every one. I encourage inspections and appraisals. Sunlight is the best disinfectant, right.
I say DSCR just for simplicity of the paperwork. Key is more on using portfolio lending. When have such a relationship with a bank, and repetition, it breeds comprehension and security. To be more exact I'd, at whatever point, utelize a commercial financing "product", but as said portfolio, with a LOC. We would close via the LOC, then they complete paperwork to then roll that next purchase into the entire whole of the financing, and replenish that LOC. The actual account with the capitol would just sit in it's account, used just as eye-candy for the PA's, and warm-fuzzy feeling for the bank I'm working with.
One may wonder "but what about when you get ____ properties in there?". Keep scale in mind, there C4D's, they ideally finance out in 3-5yrs, so there is a natural churn to it all. And a person is going to do what, as-many-as 10 a year, maybe. 50 SFH's worth isn't really all that much $ in commercial finance terms.
If your concern on wrapping DSCR is on a what-if revenues get interrupted, I'd remind that by wrapping in a grouping you lower your risk exposure. 10 SFR's on a mortgage is much safer than 1, because loss of any 1's revenue is only a loss of 10% revenues, not 100%. Same way insurance works on risk exposure.
As for not needing the $1m, I know, I do these now, and have for years, hence why I can rattle on about them, because I actually do them and am speaking from experience not theory.
Well..... except for scaling, that is theory, I am not at-scale on it, not at all, haven't tried to scale but have thought on it a few times. I don't market it at all, 100% word of mouth....
What scale has your current word of mouth approach got you to?
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @James Hamling:
Quote from @Austin Fowler:
Quote from @Remington Lyman:
Quote from @Austin Fowler:
Very interested in hearing people's investment strategies in real estate. What do you do? What are you passionate about? What kind of returns do you target when investing? How hands-on are you? How scalable is your investment approach? If you won or inherited or otherwise suddenly had $1M in cash, how would you use it to expand your portfolio? Or accelerate your wealth creation?
I like buying properties and having my tenants pay off the debt with their rent. I am passionate about making money. I do not do a good job calculating returns; I just try to buy good deals. I am pretty hands on. It is pretty scalable. I would put it in a money market account and buy properties as I come accross them
What is your definition of cash flow? Rent - management - vacancy - maintenance - taxes - insurance - mortgate? Can you give an example of something available today that would cash flow? Without cashflow, how would you scale?
Your asking the wrong question Austin. You should be asking at what annual rate is the scalability.
One can scale buying and doing standard rentals. But scaling will be measured in years and decades. The rate of capitol return is simply not something that lends to any significant self-scaling metric. Period, full-stop. Those who say there C/D can scale so fast blah blah blah, there full of sh#t, or too new or clueless.
The only "hack" is some form of hacking, as in house hacking, something of that nature and in that the scalability is created by the buy and build, not the operation itself. Because these strategies literally create equity. Equity that speeds up capitol recapture, so one has the capitol to scale.
Scaling requires capitol. When talking real estate, it means sizable capitol. There is no passive or passive-like monetization of real estate that generates the kind of capitol required for any note worthy pace of acquisition.
Cash-flow is generally measured in hundreds. Acquisition costs are generally measured in tens of thousands. The former does not lend to any rapid scaling of the later.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @Remington Lyman:
Quote from @Austin Fowler:
Very interested in hearing people's investment strategies in real estate. What do you do? What are you passionate about? What kind of returns do you target when investing? How hands-on are you? How scalable is your investment approach? If you won or inherited or otherwise suddenly had $1M in cash, how would you use it to expand your portfolio? Or accelerate your wealth creation?
I like buying properties and having my tenants pay off the debt with their rent. I am passionate about making money. I do not do a good job calculating returns; I just try to buy good deals. I am pretty hands on. It is pretty scalable. I would put it in a money market account and buy properties as I come accross them
What is your definition of cash flow? Rent - management - vacancy - maintenance - taxes - insurance - mortgate? Can you give an example of something available today that would cash flow? Without cashflow, how would you scale?
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @James Hamling:
Ok @Austin Fowler you really want to know what I'd do if dropped $1m liquid in my hands and I gotta utilize it in Real Estate, even though all of 7 people on BP will comprehend it......
About $5k into website, 2 VA's and system.
From there 1 VA calls on active buyers agents in designated markets presenting pitch to fill my calendly.
From there I pitch my C4D program for "nearly financed" buyers. When the buyers agent get's leads, works em, and finds there buyers are oh-so-close to approval but not there, they can still earn that commission via my C4D program.
Everything would revolve around "median" world of things.
Required minimum down payment is 20%. No exceptions. Everything else, there would be guidelines but just that, guidelines and negotiable whereas down has 0-flex.
All app's via website. Va#2 process's per training.
Buyers get a pre-qual budget. Buyers agent then helps them shop for such. When they find the right one, buyers enter agreement and post held escrowed down with me. Buyers agent submits PA, myself as buyer.
At end of day, it's infinite investing, because when closing is done and all $ has cleared I am personally $0 into any property, that $1m was simply used to launch the biz and then to leverage to landing the PA's.
The tenant-buyers financed the purchase via there down, which I utilize to unlock financing on the purchase. I would be using portfolio lending on DSCR underwriting, cross securitized by, you got it, the giant pile of cash sitting in an account spinning round n round.
Now being C4D buyers there is 2 spreads. First is on purchase price, second is interest rate.
I only have to capitalize risk exposure, overhead and profits because I have $0 invested capitol. Thus a small spread can equal sizable returns.
Now if you understand the math here, buyers doing 20% down on a buy price that has a profitable margin built in, then you understand how it would be more then 20% on my actual purchase. Probably more-so 30%.
In summary, I wouldn't deploy 90% of the $1m, I would leverage the lions share of the $1m to unlock infinite returns via OPM.
And I am now well liquid to cover any potential default issues if such were to occur. But being "median" focused and with C4D buyers who put 20%+ down aka significant skin into it, well one would have to chop off there own preverbal legs to give me a bloody nose. And I'd be well liquid to more then amply take care of any bloody-nose.
My risk exposure would be less then that of standard landlording, as the tenants would have far more securitization. So risk wise, it's a low-risk strategy in real estate.
And end of day, everybody is winning, the agents win, the end buyers win, and I win.
The trick to it all is setting and keeping good fences.
100% of C4D's I have seen blow-up have all had the common component of neglect on behalf of the investor. Selling to persons they shouldn't have, under securitizing, not keeping strong fences.
There ya-go Austin, that's what I'd do. And I'd dedicate as-much-as 20hrs a week to it. I'd fund my va's for 90 days and from there forward I'd require the venture to self-fund all operations from revenues. And that would be my "stop-loss". The moment it stops self-operating, I'd end it, regardless of a causation.
Thus preserving my capitol.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @V.G Jason:
Quote from @Austin Fowler:
Quote from @Jakub R.:
Hi Austin. My current strategy includes investing in multifamily syndications and single family rentals. While syndications are very hands off I do like owning an asset that produces income. My main concern about syndications is that they feel much less liquid and while some of them have high upside potential I plan to hold both asset types across markets for diversification.
I have been recently looking at linear markets like northeast OH and west PA. What are your thoughts on these?
Hi Jakub, I also like mixing single-family long-term rentals with passive multifamily. I don’t personally focus on specific markets, rather I like diversity. I have assets in AL, AR, CA, FL, GA, IL, IN, MA, MO, MS, OH, OK, PA, TN, TX, WA, and additional assets in Australia, Canada, and Brazil. When it comes to single-family, I like cash flow, so I’m not buying at the moment because both prices and interest rates are too high relative to rents. When it comes to multifamily, my due diligence starts with the operator. I like publicly discoverable operators that you can find easily with a Google search, managing hundreds of millions to a few billion in assets, with a focus on single assets, not funds, at least 10 years of experience in their current form, at least 10 buildings taken full cycle, an excellent track record of delivering outstanding investor returns throughout their history, and deals on offer that are similar to the deals they have completed successful. I like ground-up development, particularly affordable housing, and my ideal deal is building the last multifamily community in an otherwise built out and bustling neighborhood with lots of entertainment, transport, and employment diversity.
You're the one raises capital then buys turnkey and "guarantees" 8% return if I remember correctly? I remember this as I joined this forum with fractional reserve banking.
Is this a disguised thread to raise capital again?
Hi V.G, this thread is all about getting ways of investing that work now discussed openly. No more, no less.
Post: Get 8% per annum, fully liquid, no fees, no lock up, interest credited daily

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Stairway Invest is an ecosystem where accredited investors can get an account that pays 8% per annum, asset backed and personally guaranteed, and get paired with a professional investor and see the deals they use to generate a return in excess of 8% per annum. It's investment education done differently, where you get paid interest to learn. Head over to the website, create an account and choose an investor that does what you want to learn how to do. We cover flips, both active and passive, BRRRR, passive multifamily, NNN commercial and much more.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @V.G Jason:
Two chicks at the same time, man.
It just depends on where you're starting. Someone nothing that doesn't know money; better of paying all consumer debt, buying a house cash, and living simply with any leftover in some form of equities & gold. Someone with a REI background, likely lower LTV higher quality properties in areas they like.
I don't "chase" return percentage. You don't control the outputs, just the inputs. Focus on that.
Post: If you had $1M, how would you invest it?

- Investor
- Reseda, CA
- Posts 277
- Votes 142
Quote from @Doug Smith:
Quote from @Austin Fowler:
Quote from @Doug Smith:
I hate to shoot myself in the foot as a lender as well as an investor, but I would keep the leverage lower. Injecting more cash into the deal keeps the interest costs lower and give you more flexibility with the exit strategy. I know people like to put as little down as possible, but on a flip or spec built, interest costs can eat you up. On a rental, higher interest costs can erode cash flow. Having more equity in a deal also give you more options should things go South and you need to exit. During the 2007/2008 crash, real estate dropped by 19% on average of purchased at the high and had to sell at the low. Less leverage and more equity gives you more options for escape in a pinch and improves the likelihood of profit. Yes, your cash-on-cash percentage might be less, but so is your risk. That's my 2 cents anyway.
Thanks Doug, can you elaborate on what you would actually buy? In my own case, the focus is multifamily and flips, so returns in the 20% to 40% range on capital depending how active I am. What type of assets would you acquire? What would the numbers look like? What would your return on capital be? What could you make that $1M grow into?
As lenders, we broker most of what we do, but we will lend on shorter-term, lower-LTV deals or transactionally fund with the capital, provided we can get comfortable with the property, the parties, and the closing agent. Again, we stick with lower LTVs on that and the "c-buyer" has to be in place and they have to wire their EMD in to the closing agent "hard" prior to us funding. As investors, we originally did a lot of flips, but most of what we do now are higher-end ground-up spec construction. We don't buy and hold unless we can sell a property in a reasonable time period. Not that there's anything wrong with it. We've found we're just really good with the ground-up spec between $1 million and 3 $3 million in as-completed value.