All Forum Posts by: Axel Meierhoefer

@Niraj S. Yes, I do. Some came from a 1031 exchange but I also always put money aside.

I own a consulting company and when I first started in 2005 I realized that there was no retirement plan I could find. I searched and it became obvious that I need to do something myself.

My goal was to put $2000/month aside for retirement funding and then buy a property about every 10 months. In reality, it did not work exactly like that because I didn't always have $2000 to spare. As I added properties over the years it became easier because I didn't use the cash flow to consume but added it to my accumulation-saving account. That way in some months I had $2500 or even $3000 and in some, I had $1800 of which 6 might have come from cash flow.

I was very fortunate in life: I joined the Air Force after school and become an aviator. Flying jets was awesome but your body can only do that for so long. At around 40 I wasn't able to pass the flight physicals easily anymore and had to make a choice at 41 to either retire or, as I call it "fly a desk". I decided to retire and it taught me that it is like completing a careeer.

I thought I would now have the freedom to do what I wanted but had to realize that I didn't get enough money in the door to stop working. I decided then that I needed to determine a "Time Freedom Point" when I would no longer have to work and really have the freedom to decide what I want to do with my team. That might include posting on BP all day long and leading my TK providers in the maintenance of my portfolio.

I made a bunch of mistakes in the early years and the great recession did not help me. I started my own company in 2005 and it hit in about 2008. Out of these mistakes the model and strategy I am now following emerged and by the end of this year I will reach the Time Freedom Point I set many years ago.

A lot of people reading this will probably say: "wow, that's a long time". That's true but its long because I made mistakes I hope to tell people on BP about so they can avoid them and I, by my own choice, live in an expensive area of the world. I could have probably reached the point years ago if I would be willing to move to a place where life doesn't cost nearly as much as here. Last week I actually saw apples for sale in the store where they wanted to charge $1.50/apple. Go figure.

I think on average, by avoiding my mistakes and being really diligent, someone can get to the "TFP" in 8-12 years. That's why i always hope that people in their 20's, 30's and maybe early 40's read here on BP and take action so they can have the freedom to decide what to do with their most valuable commodity "time" and not having to exchange it for money.

I also like that I will not be dependent on any government programs when i decide to dial back my work hours and switch to growing exotic fruit. :-) 

@Nick Rutkowski Yep, that's true

@Jay Hinrichs Totally true. I wish I could be that concise, but it's exactly how I see it.

To me, there is some analogy to leadership and you triggered what I studied in college by what you said.

As a leader, I need to give direction, motivate, trust but verify, and check-in to make sure that the direction towards the goal is maintained. The production comes from the operators and managers.

In that sense, when I say "passive", I mean the operational part, like taking calls, sending contractors, repairmen, checking completed work, finding tenants, writing lease agreements - that's all production and passive for me.

I am the leader of my portfolio and the TK providers I work with. Passive does not mean to only collect a check.

I wrote a few comments back about how I feel more as part of a family where I lead my part of the assets. We talk, we set strategy, we celebrate, we exchange gifts, and I set direction if I see something drifting away from the path to success. 

That also means it's collaborative and not just me as the investor demanding things and then leaning back. That interpersonal aspect I am sure you have seen thousands of times is what I like probably the most.

@Fernando E. I am in several markets, one being west of Chicago, one in the Cincinnati area, and one in Alabama. Memphis Invest (or now REI) is part of the list but compared to the other three I don't own properties with them (yet). We tried a few times but it didn't work out yet. They keep expanding, so maybe in the future.

@John Morgan I am a little jealous when I read your post about managing yourself. I wish I could do that but my properties are so far away that it's not feasible. It's not just the distance but also 3 hours time difference.

Still, nice to know how that can work

@Bisrat Thank you. Yes, I am glad too

@Tara Kreutter Thank you for appreciating the content in this thread. I am amazed myself how much feedback people provide and never expect it all to just positive.

I agree, I also don't think BP is against TK. I believe there are many definitions about TK and only very few would apply to what I believe to be true TK.

I would love to help you to the next step. maybe you PM me and we can chat and if you think it is a good idea I can refer you to my contacts at the TK.

@Jay Yoototally correct

I know I like fluffy carpet when I get out if befbut as investor and OOS TK investor I put LPV because it is more durable.

If I can help, let me know. We can have a call and if it is of interest I am happy to personally introduce you to my TK’s and my insurer, etc.

@Jay Hinrichs You are right jay, as almost always. Thanks for commenting on this thread.

I think it has to do with the selection criteria for tenants ad when there is so much demand it could be that PM's can be a little more selective. COuld just as well be that I was just lucky and 2021 is going to be the nightmare.

I honestly thought the pandemic would have a really bad impact but it dint to me. That does not mean the post-pandemic time when things might be to a reality check could not have. 

On the other hand, I did not really get any new tenants in the last 12 months or more, so I don't think there will be "renters remorse" :).

@Carlos Pt

Sure, you tell me yours (in PM) and I am happy to introduce you to mine. That way we both gain some diversity :)