All Forum Posts by: NaDean Bowles

Who in here is a private lender?   Either small or large scale.  I'm putting it in my plans.  I know one person who started at $20,000 but it's hard for them to find those who only need that much and that always puts them in second position.  

How much did you begin with?  How much property will that purchase relevant to the market you are in?  What rates do you begin with?  What protections do you have in place to protect your assets?  

Thank you!

@Evan Polaski, yes she previously ran me down for how much money I must have and why can't I pay it for a while.  Wow.  She actually was much better off than I but she likes a lifestyle she can't afford.  When she started in on "You did this horrible thing to me" "What you did", I stopped her in her tracks and told her that none of this was my doing.  

Fun times!  Meanwhile, I really did forget to make a couple of important repairs to a rental someone just moved into.  2 weeks.  Those are my fault.  They are getting fixed tomorrow though.  I'm going to have to comp their rent a bit for forgetting.  Ugh.  One of those days.... 

I served an eviction notice this weekend and just got a tearful shaming of how horrible and mean I am via a phone call.  I gave her several clear, direct explanations of this will happen on X date and will take place in XYZ processes.  

Ugh.  Not to mention it's all in that pesky lease paperwork too.  Tell me you're going to be late and I'll work with you as much as possible.  ******** me and I won't.   This one pushed it as far as I could go anyway.  

@Shawn Skaggs Happy Birthday! 

You could double that $3000/mo by doing real estate private lending and/or grow the principle.  My ultimate goal is to be the bank which is what private lending provides you.  

Ok.... what about this approach:

Buy more properties.  Perhaps up to $300,000 more of down payments and have even more cash flow.  

Sell some of what you have rehabbed before it needs anything fixed again so the new roofs/new HVAC's will be on someone else.  You should have raised your value significantly with the rehab by raising the rents.  

Add storage and/or gyms to raise rent.  Gyms and storage are pretty cheap actually if you have a larger complex and space.  Space for either can fit under staircases, etc.  

Then sell.

Do a 1031 move over into new properties using your old money as the down payments for the new properties and I would expect your cash flow to skyrocket.

Make sure to leave room to supplement Medicare. Perhaps put your own utilities on some form of renewable energy to cut monthly costs long term if you have a larger home.  

Have you talked to your wife?  Would she be reasonable about it?  Would she stick to a budget?  

Could you modify your work to open your own business to supplement your current cash flow?  Are you putting any of your current cash flow back into your real estate?  

@Yair Gafni  St. Louis has great pockets but not an overall great rental market.  Stick to the preferred school districts and your rentals should be fine.   If you are looking for a strong and steady rental market I am in Little Rock and recommend it.  Slow appreciation but strong and steady for rentals.  Let me know if you have any other questions.  

Congrats on making so much headway!  

So what IS your freedom number?  

What cash flow will meet all of your needs?  Do you still have debt on any of those properties?  Can you increase your cash flow by paying them down or slowly raising rent over time?  Will your rents hold up in a down market?  Most rent will increase in a down market but if you are airbnb'ing anything or if your properties are at the high end of the rental market they may decrease some.  

What if you never touched your principal?  You could move a lot or all of that $800k into a self directed account and lend out through private lending in real estate at 8-10% and never ever touch the principal if you can live off the interest.  In my personal experience only the more desperate for deals and/or cash go after the 12% hard money in this market so would be personally wary of someone willing to do that.  Just my two cents though.  

Lots of markets will support multiple deals with that kind of money. 

Buy only you can decide what your freedom number is.  Personally, working Saturdays with a young grandchild would get me there very quickly.  

I like Chris with Central AR Pest Services.

They are more expensive up front but the Kwikset Smartkey landlord locks are sooooo helpful and very much worth it.  Change locks between every tenant.  

@Daniel J Dominguez, how much of that appreciation in Houston is due to the previous year's flooding though?  Do you think it's sustainable?  When will it level out?