All Forum Posts by: Brent Shields

@Daniel Bradley His kid wanted to make plastic cups and print sayings and logos on them so he could hand them out to his friends. Then the kid ended up getting Budweiser to sign a contract to supply them with personalized cups for their events, and the business really took off from there.

I have several different accounts in trust names, and my experience has been that every bank is different.
Some care and some don't, just be ready for all types of responses. I have even had a bank take checks for 6 months then one day out of the blue just say from today on we will not take trust checks any more in this account.
I have also had banks tell me that I can't deposit checks made out in my name into an account held by a trust.
It also makes a difference the amount on the checks if it's under $1,000 then most banks don't care too much. Once it goes over $100,000 then most banks start caring.
And I have one bank that most of the tellers will not take my checks, but two tellers will, so I sometimes wait around utill one of the check friendly tellers are available.

That's been my experience, your mileage may vary.

@Brenna Crowe If you can make 100% on your flips then you should do as many as you can. The student loan even if you are paying 10% will not make a difference so just forget about it and focus on doing more flips.

Once you have so much money in the bank that you can't figure out how to invest it all then you can pay off your student loans.

Everyone I know making that kind of money has very expensive hobbies. If you turn your hobby into a business then it's tax deductible.

But be careful because I have a friend who is a doctor that's always crying about his taxes, so I told him to set up a business in his garage and let his teenage kid run it. Everyone will have fun and the business will lose money so he gets a write off, and maybe his kid will learn something.

The problem was his kid actually was amazing at running the business and ended up making a ton of money his first year. Lol.

When I started I had no money and no skills. What I did was found someone who had started with nothing and was making millions. Then I talked that person into showing me how they did it and I did exactly what they told me to do.
The only thing I really brought to the table when I started was a willingness to complete a task by working any number of hours required.

If I had to start over I would look at the number of people I know who have started something and made millions in less than 5 years:
I know a couple dozen people who have done this flipping houses.
I know half a dozen people who have done this day trading the stock market.
I know one person who has done this syndicating large apartment buildings.
I know zero people who have done this holding rentals. (I do know several dozen people who have made millions with rental properties in 30+ years.)

Those are my experiences, your mileage may vary.

@Keith Mudiappa I had 27 rental properties and they turned into a full time job. A job which I really didn't like doing. It was a pain getting up in the morning and going out to deal with all the problems of the day. If you enjoy spending your day dealing with tenants and all their issues then there is nothing wrong with that.

I just figured out one day that I really ended up with a very low paying job that I didn't like.

So I sold all my rentals and it was the best decision I ever made. 

I don't think it has to be one or the other, they are both important, I like to get around an 8% cashflow and then when the asset sells I want a return on my total investment around 20% per year.

Every time I see someone talk about passive income and AirBnb in the same paragraph, I always think of my cousin who gets up every morning and goes to work around 8am and gets home from her AirBnb business after 5pm.
Creating a job for yourself is not really what I consider passive income investing.

Around here there are a lot of 5 cap commercial properties, to make $10 million a year from the cash flow you would need to buy approximately $200 million worth of them if they are NNN buildings.

On the other hand flipping just pays a lot more, if you were really good you could buy commercial properties for $1 million to $2 million, then flip them for a $1 million profit, do that 10 times in a year and you also made your $10 million.

First answer:

The cheapest house I have purchased in terms of the sales price would be $10k,

I bought it because it was really cheap.

I tried to rent it out but had a lot of problems because it was in a really bad neighbourhood.

I sold the house because it was a headache, and I probably wouldn't do it again, even though I made money on the house.

Second answer:

Cheapest house in terms of how much money I had to put into buying the house, the answer would be zero,

I bought it because I didn't have any money at risk and I knew I could easily sell it.

Then I sold the house for a nice profit.

I would absolutely do that again.