All Forum Posts by: Kelly Foydl

Here's what I have learned so far.

1. Gosh, I want to start with this problem (of course)

2. A secondary path after I hit goals/achievements should be part of the planning. If I had the million, is there another plan

3. There are far more potential mentors than I knew.

What would I do with $ million?

I'm over 40 (I can admit it ;) ) and if I had the money here is what I would do. 

I would still do some buy/holds to create an income stream (likely with a small amount like $300k)

before I do the other parts of my previous post, I think I would ask a few potential mentor types for a sit down and discuss lending, JV ideas and see how they feel and fit into my world, then decide if my prior plan was best or some other options.

Sorry, didn't mean to create any bad will with the "admit it" statement. But the reality is, our age bracket very easily influences the path we select. As well as when we started out investing, stage of experience, etc, etc. 

The thing about this is...okay, it's a partial sentence I will clear up.

I want to maintain the principal amount, appreciation is secondary and not my sole investment purpose in a buy/hold scenario. I certainly don't want to lose principal.

@Steve Olafson, if you start a new thread (please do) I will read with great interest

Incredibly interested, so long is good! 

I'm noticing the trend here which is why the age part of the question is so important.

For the ones under 40, you create a new career, keep investing, stay actively involved day to day, and as an entrepreneur those days are much longer than a 9-5 but more fun. Those of us over 40 start doing things closer to the passive income side (not all, @Jon Klaus is an exception). 

Like @Mike Finley, the end game is near...want my time, like @Brie Schmidt to do what I want with reoccurring income.

I ask this question of people all the time. I would love to have this problem, and hope to someday. Those who are not investment minded just say "I'd retire" without thinking of how long the money would last. Investors think differently. 

It's a hard question because if you were to net $1million, I think the natural reaction of a newbie is "don't lose it" and we would get stuck in fear of making huge mistakes. Those of you that have been active in this world all seem so secure in your answers.

I appreciate you all playing the game again. As I see in the related discussions area, we all ask the question. I don't care about net worth, I only care about income and security.

@Brie Schmidt

Let's say I want to do your plan...how many houses do you believe you would end up buying (price range) and are you re-investing or using it for cash flow to float all that traveling?

I think for someone like me who has yet to do the first deal (soon though, no excuses) the idea of leveraging is scary. Plus to be new, you still have to old down that dorky JOB while you find all those homes.

I love your idea, but my fear would cause me to pause...I should get over it.

what would I do...I have to admit I'm conflicted. 

I'm in the middle age group. So I think I would do a combo of things. Time is my "reason" and wanting out of conventional 9-5 J O B.

I would take about $200,000 to buy around sub$30 rentals at 1.5% for cash flow to keep my household afloat while I become a full time investor. Don't need a ton to make ends meet with my spouse.

I would take $300,000 to leverage for more rentals and keep re-circulating funds to grow that group. 

I would take $300,000 and find some way to get started or involved in private lending. Taking those earnings to supplement my leveraged rentals, maintaining my principal in this area.

 The last $200,000 I think I would keep liquid, not in real estate, but like in Vanguard fund for emergencies.

Hi all,

I know it's been played before, but there are tons of us new to the site, so thought I would play it again.

You just won something that gave you an after tax, free and clear $1 MILLION dollars to do as you please.

If you are younger then 40..please indicate...if older than 40...admit it, over 55 admit it, think about your end game or when you might stop or do you plan to be actively investing till the last breathe?

How would you invest your money or would you? Would you differ than your current methods? If you are a sub$30 buy and hold, do you go up in values or maintain? Would you invest all 1 million in real estate or only a portion? Would you leverage or not (especially with your over 40 or 55). How many would suddenly start participating in private money lending of some sort?

For those of you that would just leverage and buy $4 million dollars worth of buy and holds, why would you NOT do other things?

Okay, let's here what you would do.

It's the 1st quarter and as I've stated in a prior post, I'm doing my research, building my game plan etc. I am starting to actually write down my business plan draft(s) that I will be refining over time. One of the topics I hear about is the age old topic of to leverage or not to leverage. I am in the position of potentially being able to chose. So I am about to attempt to build a spreadsheet to analyze cash flow with and without leverage to help build my goals for each of the first 5 years. (Yes, I will be backing into my goals) but I also want to review how leveraging will impact my cashflow over multiple rentals etc. You know, to assess my comfort levels against best guesses of numbers against whether my goals are realistic or too small blah blah blah.

Anyway, wondering if anyone has already created such a spreadsheet so I don't have to recreate the entire wheel? Does this exist anywhere already?

I know I am investing for cash flow, not as much about appreciation. Stabilty is fine for me, appreciation is a bonus. So I'm looking to create a forecast, with multiple properties, leveraged and cash situations to see the differences to help refine my business plan. 

Thanks for looking!

I guess what I am really asking is what is the spreadsheet to show how if cash flow is important to VIEW the difference of using OPM rather than cash...I get the concept that OPM is better, but I'd like to review some scenarios via Excel to trust it more.