All Forum Posts by: Kelly Foydl

This is an interesting topic.

If you buy in all cash, say 2 houses in 2015 for 100k total. Using a theory of $750 in rents per location, someone should show the numbers (I don't have a spreadsheet available) and compare that to using OPM, 20% and 4% 30 year loans what the cash flow difference is.

Part of risk to value has to be what your buy and hold is largely about, cash flow. That 100% can't buy you 10 houses because of closing costs etc, so maybe you could get 8 done. 

How far ahead or behind are you year 1, year 5, year 10, year 30 assuming you never purchase another rental again?

Maybe if your goal is to have cash flow to stop working traditional job 9 to 5, it makes more sense which direction?

thank you all for the nice welcome!

@Paul Timmins

I'm currently reading the Ultimate beginners guide via BP, but I will absolutely look at reading both of those as well. Thank you! And I've just started glancing around for some groups to join here locally, so great idea. 

@Melanie O. 

Orangevale, awesome. Hope it goes great!

Hi everyone,

I'm at work where I tend to listen to Bigger Pockets podcasts and they of course encourage you to introduce yourself. So, trying to be more in action and not just lurking, here I go.

I found this site after listening to Lisa Phillips. Her stategy mirrors something that interests me. I think you can help communities and invest at the same time at a high profitable level. 

I really hadn't considered investing in real estate all that much until some life changes forced me to seriously consider how to be responsible for my financial life. I decided that cash flow was very important to me and began researching methods for creating cash flow while preserving/maintaining my net worth. That just led me to real estate. From there started listening to Rich Dad Poor Dad on youtube and somehow found Lisa there as well. Listening to Lisa led me here.

So I decided that 2015 was my year. Like lots of people, fear can stall a person so I broke down my plan into quarter plans. I knew I needed some education, some tools. So I am researching and gather data the first quarter of this year, while also creating my business plan. My 2nd quarter goal is more action driven, where I will be actively looking for a deal to move on. If all goes well, I will own my first buy and hold before the 3rd quarter.

My first quarter plan is still important. I'm putting together spreadsheets, using some example deals to practice reading them. Looking for my "team" or at least the first few players in there while also reading and learning other real estate info, like Bigger Pockets. If I were building any other business, I know you can't just jump and open up shop, so I am trying to treat this exactly the same. Put my systems in place, then open the doors. 

Every night my eyes hurt from reading and looking stuff up. But my vision on what my business is grows clearer. I'm excited. I'm scared but I'm sticking with it.

Anyway, look forward to more years here. I appreciate reading everything and I will participate and not just lurk (although lurking through past forums and blogs is fascinating!).

Thank you all1

Newbie question

I've finally made the commitment this year to build my real estate business. I'm dedicating the first quarter of 2015 to literally finishing up my education (not that I've learned everything, just need to pick a time to be in action and not just thinking), building a written business plan, organizing myself (tools, resources, etc) so I am ready to get into action the 2nd quarter of the year.

So reading the chapter in Ultimate Beginner's guide to REI for building a business plan, there is a section for exit strategies. Wondering for those in the buy and hold arena, if anyone has considered, is planning to or is using the strategy of holding the note and selling properties at a certain time?

Let me give an example in case I'm not clear.

So say my business plan was to buy and hold for cash flow for X number of years. 

At the end of X years, then I want to sell the SFR. But I want to hold the note upon sale. (not saying I wouldn't accept cash) but the goal would be to find someone wanting to use me as their lender, maybe to get an extra few years of cash flow from that same property. I like the idea of whatever tenant moves in near the X year, you offer to do a form of a lease to own option (increase rent for down payment) then convert it into a loan at a certain date.

Opinions?