All Forum Posts by: Mark S.

@Andrew Frishman, yes.  Distributions are generally paid on/within a few days of the 10th of each month.  Their current fund with a 10% preferred return is supposed to stay open until the launch of the new fund that will pay 7%.  Originally, the 10% fund was slated to close in early November but according to Jorge on a recent investor update webinar, his attorney informed him AHP was able to submit a particular form to extend the fund for up to a year (normally it can only stay open for 2 years from launch).  They expect it to stay open until January 2021 when they plan to launch the 7% fund.  Looks like an extra 2 months to get money in at 10% instead of 7%.  Cheers. 

Cash flow is only one of several return metrics on a rental property.  Not saying $45/mo is good, but you need to look at the bigger picture.  

@Mike Chavan, to your question on the 15 vs 30, I would almost always choose the 30.  Check out @Keith Weinhold’s Get Rich Education podcast.  You may have to search through some episodes, but he goes through this on several of his shows.  One of my favorite episodes (I believe it’s episode 6 or 7) is Why You’re Not Financially Free (or something like that), where he talks about home equity (which plays into your 15 vs 30 question).  Check it out.  Let me know what you think.  I’m also a high W-2 earner investing passively.  If you ever want to chat, feel free to send me a message. 

@Joseph Hartley, do you have other income sources?  Unless you’re paying cash or using some other sort of creative financing (which I would assume you aren’t), how are you planning to qualify for a conventional loan with no job?  Or are you waiting until you’re employed?

@Scott Trench ‘s book Set for Life is excellent.  If you want information overload on all financial topics, Ric Edelman has some books.  Depending on what you’re trying to learn, which sounds like basic personal finance info, I would check out podcasts like ChooseFI and BP Money.  

@Reagan Huefner, Chase Sapphire Preferred is offering 80,000 bonus points (equivalent to $800 cash or $1,000 travel) on $4K spent in first 3 months right now.  When I got the bonus on mine a while back, it was 60,000 points.  $95 annual fee, but if you look at the card benefits you could make a case it’s worth it.  Worst case, cancel after first year and get $705 (or $905) net.  I was always against paying annual fees for cards, but there are some that are worth it when you do the math on your usage and the benefits you get.  Not all are.  This probably goes without saying, but the overall assumption here is that the card balance is paid off in full every cycle, no exceptions.   None of this makes any sense if you carry a balance.  

Sounds like Shark Tank...

Stock market at 22, REI at 33, self-made millionnaire by 35, doesn't feel like a big deal and looking forward to $10MM.

@Jeremy Marquez, I use one business checking for rents/mortgages and a separate business savings for each property for reserves.  

I buy turnkey in Memphis, TN but am also looking at possibly expanding into Florida.  There are a couple of providers I’ve heard on several podcasts in FL that I may take a trip to visit at some point.  Both providers focus on new construction and generally newer properties.  The whole “build to rent” idea.  In Memphis, I use Mid South Home Buyers (MSHB).

@Jayson Greenblatt, in addition to some syndications and note funds, I only buy turnkey out of state.  I have 5 SFRs currently in Memphis, TN.  Nothing is perfect and I’m not getting rich overnight (nor did I ever expect to), but when you look at total return from these turnkeys and compare it to stock market-based investments, they’re hard to beat.  One acronym I always liked is that real estate is said to be the IDEAL investment:

Income (from cash flow)

Depreciation (tax deduction due to depreciation)

Equity growth (via principal paydown by tenant)

Appreciation (generally, over time, even though I assume 0% appreciation in my return calculations)

Leverage (and the corresponding inflation-profiting benefits through long-term fixed interest rate debt)

@Keith Weinhold of Get Rich Education does a great job of explaining the many simultaneous profit centers real estate provides.  I’m also a huge fan of his thinking on managing equity (which leads to a whole separate discussion).

I would say the biggest thing to look for and vet is the turnkey providers themselves.  It’s well worth it to take the time to meet the team and see what your guy tells you (in addition to all the other normal due diligence).  There’s some stand-up operators out there and also some chop shop garbage operators.  It’s up to us to look out for ourselves and one of the better ways to do that in my opinion is to make a trip to visit them.  There are at least two providers I’ve personally met/toured with that, although they’re really nice people, I will probably never do business with.