All Forum Posts by: Joe M.

 well to give you some perspective I was VERY anti-debt when I started as well.

 Now I'm a debt cheerleader. What changed was my understanding of the risks and experience using the system, I think debt can be very scary when you don't have a deep and long term understanding of the real life risks, and how to mitigate. Risk is not to be feared, only managed.

Learning is the ultimate risk mitigation though, so you're on the right track ;)

any other ways to do what? I'm confused as to what you're wanting to find. There are plenty f ways to make money, the reason BRRRR is hyped up here isn't because it's the only way, it's just a REALLY REALLY good way. if you want to use leverage to buy SFR then this is the best way. You're asking if there are any other ways, but you should define your goal so we can maybe provide options.

you can save money and buy your houses cash. This is common, but it's not talked about because it's inefficient and unnecessarily slow. This is the only way to buy houses without debt though

Welcome to the buffet table @Joe M.. Sample all that BP has to offer but beware the shiny object syndrome. There are a million and one ways to make money in real estate. There are also a million and one ways to lose money in real estate.

Buy and hold, house flipping, wholesaling, small multi-family, lease options, land contracts, large multi-family, assisted living facilities, vacation rentals, corporate rentals, self storage, notes, mobile home parks, medical office buildings, turn key rentals, etc.

Is your head spinning yet?

In my opinion, it's important to first begin with the end in mind. What does success look like? How much time is your chosen strategy going to take once it's achieved your financial goal? How location dependent is it going to be?

Is it self-managing your own portfolio of cash flowing single family homes making $80,000 a year in rental income?

Is it earning $150,000 a year flipping houses?

Is it owning your own self storage facility and managing the on-site manager?

Is it owning part of a real estate syndication earning a passive return on your money while an experienced operator handles all the day to day operations?

Is it owning a portfolio of single family turn key rentals, paying a management company and collecting the cash flow?

Start with what your financial goal. Then look at what your time horizon is (how quickly would you like to get there?). Finally, ask yourself how passive you want it to be once it's successful and how location depend it is.

As I said, there are a million and one ways to make money in real estate, but not every strategy is going to work for your specific financial goals or the lifestyle you are trying to build.

I hope that helps.

Joe Marshall

There is a reason you keep hearing about BRRRR is because it is a proven excellent method of investing and building wealth.

Terry, I'm fairly certain that @Joe Marshall doesn't want that to be the ultimate answer!

(As well as most on BP who post: I've-got-nothing-but-I-want-get-rich-quick answers, now!)...

Maybe change the meaning of the fourth "R" to "Replenish" since you are getting your money ready for your next acquisition. It actually is the original BRRRR in a sense.

Sorry @Eugene Beard but you don't realize the savings until after 20 years...and then you only realize in small increments.  The full savings you speak of happens in year 30.  How many real estate investor will hold onto their property that long.

This is an illusion.  For those first 20 years you are coming out of pocket at a higher cost then if you just let your tenant pay off the mortgage for you.,,that's out of YOUR pocket.

Run the actual numbers:

Total cost paid out of pocket in principle and interest during each year.

Total cost out of pocket after payoff (assuming you are paying off early)

Amount of cash saved each year offsetting the extra cash you spent during the 20 years.

The questions I have are these:

1 - When do you break even?

2 - When do you realize the savings?

3 - When you break even, and realize the savings, do you still own the property?

4 - If the answer to #3 is yes, during that 20 year period, what extra costs are added to the total based on repairs, etc...that also must be caught up before you break eve...and start to actually make money?