All Forum Posts by: Ryan H.

@Ryan H. Don't wait! Invest for cash flow. Yes, the Portland area may be a little hot but there other markets in which your 20k can be efficiently stretched.  

Definitely, don't sit on the sidelines spectating. 

Goodluck Ryan. Thanks! - Ola 

 @Ryan H. As a note investor or debt investor you don’t have to manage the property. You just manage the loan. Basically  when you buy a note you’re really buying a mortgage that someone is paying if it is performing.  The loan/mortgage is secured by real estate that the tenant is living in.  You are basically being the bank. 

 A debt investor is someone who creates a private loan for another investor/person.  The debt investor gets a promissory note and usually some sort of collateral in order to secure the loan. For instance, if you go into a real estate deal as a debt investor you often get a deed of trust on a property so that if the person who you lent the money to does not continue pay you according to the contract in the promissory note, then you can take over the property and sell it and get your money back.

 So you don’t have to manage the properties as a note investor or debt investor, you just manage the loan. These types of investing avenues are very passive unless the borrower stops paying the mortgage or loan in which case you can foreclose on the property or pay off the first position loan and then you can sell the asset in order to get your money back.

As a note investor or debt investor you miss out on benefiting from appreciation and depreciation but the benefit is you don’t have to manage the property unless the borrower stops paying. A note investor can find notes that perform at 7-10%, sometimes better. A debt investor can get more such as 11-12% depending on the the deal they make with the borrower.

Ryan H. Start small with one or two turnkeys. And then pause.

I don't think there is much chance you will be able to cash flow on anything in either of those markets with $20k down, and maybe not much better with $40k.  These are not currently cash flow markets, especially Portland. If turnkey cash flow properties are your interest, I'd say look elsewhere.  Midwest markets are the best for that right now.

@Ryan H.  I like what @Account Closed wrote, you could consider partnering up with someone in the location you are interested in.  if you are out of the country, you may also consider even buying performing notes or being a debt investor secured by real estate which tend to be more passive.

@Ryan H. Even if you added another zero to that amount you'd have a hard time finding much cash flow in Portland. The market is still too hot, and rents still too low, to make much cash flow. Most people in Portland are buying cheap to BRRRR, selling for a profit, or are playing the appreciation game without any cash-flow (or negative). If you're looking for turn key I'd start looking in the mid-west and/or areas in the south.

 That's an illusion.  All you're doing is paying your negative CF upfront...and playing catch up...with a higher dollar amount to catch up to, before you actually start making money.

It will be tough to find cash flow in Broward County. Not saying it doesn’t exist you’ll just have to focus on finding your own off market deals.