All Forum Posts by: Steven Eitreim

$7K monthly passive income by end of 2019.  $20K monthly passive income by Thanksgiving 2020.  Retire from corporate job, take December off, take the kids to Disney World in January/February, then start working on building "Legacy money".  Written on my wall, saved as my screen-saver on my phone, so that I see it multiple times per day. 

Something I try to consider with my investing is the cost to replace the unit.  If I'm buying a home for $240K and want to rent it out (and in most cases, it's unlikely to get $2400/mth in rent), I need to remember that a builder might be able to come in and construct new homes, rent then for the same price as mine, and make it tough for me to compete.  However, you won't be able to find a builder who can build a similar home for $80K, so at least you've limited your competition to other "established" homes in your area and compete head to head based on the quality of your unit versus theirs.  In other words, beware buying a rental property at a price that a builder could build a new one for. 

You need to go multifamily to scale.  Single family just won't get you there, unless you have money partners (equity partners or private money lenders... but be cautious of hard-money lenders with those rates).  But if you're going to get investors, why not do multi-family anyway.  Read "Multifamily Millions" by Dave Lindahl as a start... fantastic read, and really sheds light on why to scale to MF.

I agree with most, here.  Reasonable RE investments can easily deliver 10-15% cash on cash returns, which greatly outpace the 6% cash payments.  Additionally, if done right, those returns can be taxed at almost nothing, which adds to the luster of a single payment (as long as the million isn't taxed to high-heaven, as Russell Brazil stated).

Great motivation in this show.  Another example of "graduating" to multi-family investing to scale, which supports my mindset of skipping single-family altogether.  Great attitude, and great example of tenacity. 

Congrats, Sterling

If you're considering multifamily, then "Multi-family Millions" by Dave Lindahl is a FANTASTIC read, and really lays out the blueprint in multifamily investing in a very interesting way. 

Good luck

You need to work with a commercial lender, and hopefully can provide a consistent NOI that will give them comfort in lending on the deal. If you can show a longer-term lease for your retail tenant (especially if they have a stable business), this should go a long way. Over-prepare your presentation to show consistency and stability with your tenants, and shop it around until you have a taker. Guarantee there's some lender willing to give you a reasonable LTV.

Good luck

Phillip.  You need to do what you're comfortable with.  I lean multifamily, but that doesn't mean it's right.  There is $ to be found in all niches, and it would be unfortunate if we all aimed for the same target.  You'll have different market dynamics to consider, as hopefully you can acquire your additional properties in a down market to ensure that solid equity, but I wouldn't suggest you need to "graduate" to a different class if that's what you feel comfortable doing.

Best luck

I once heard a not-so-wise man say "well, the way i see it, odds of winning are 50/50...  You either win it or you don't".  Sage advice.  That $5 is much better spent buying my wife an overpriced coffee, as it builds upon a relationship.  From what I've heard, winning the lottery does nothing but destroy them.  Someone is heading towards a world of pain with those winnings.  

You dictate the terms and communication cycle.  If they can't agree to that and act upon your wishes, then it's time to move to another manager.  You're right to be actively taking yourself out of that role to focus on business development... perhaps ask the property manager why you're paying them if you're still being asked to manage the property.

good luck