Greg how many properties do you own nowadays? Any wisdom to partake on how you thrived in the Kiyosaki Krash?
I currently own a handful of income properties. As to my survival, I guess some luck and some research.
Before I began my REI stuff I spent a lot of time on RDPD forums and the local MLS asking questions. What I was reading and seeing made no sense to me. I guess I am not sophisticated enough. Investment property on the MLS was selling way above a cash flowing price with anywhere near 20% down. IMHO the REI market was based on the bigger fool theory. I buy at this price and I can find someone to pay 30% more than that within 30 days. I know some people were successful doing it but the values had to peak somewhere and you hoped you weren't the one holding the potato.
My style was certainly not fastlane. I find unlisted deals. I put in as little cash as I could for a good cash flowing position. I aim to net $300/month a property. My properties have lost market value like everyone else. Now everyone is playing the cashflow side of REI like I have been doing. Not many people that I know burning it up with fix and flip. Also, REI is moving a lot slower than 2008. Takes longer to get financing for most people.
When I started, my focus was on brick 3-2-2 homes. Plain vanilla and safe. From 2006-2008 my phone and email was busy with people offering me properties and deals. The lending locked up in 2008. That was exactly when I had quit teaching and the phone went dead. I would go hang at the bank and it was quiet there too. Real weird time. I was getting real bored, couldn't buy, couldn't sell. That's about the time I got into mobile homes for cash. I rent some out and flip some. I have a broad mix of properties now.
The luck part was that the DFW market didn't devalue as much as other markets and the employment picture did not get as bad as other areas.
I guess some benefits of being in the middle of REI...I do get looks at some unlisted deals, I am asked to partner on some deals. I used to do everything myself, now I contract out most jobs. If it's all running well I only spend a few hours a month on the business, mainly collecting rent. It is cool to have many paydays a month. I do have my eye on a full time employee soon. When it is not running smoothly the business costs a lot more hours than I would like. I have had several interesting closed door meetings with my bankers about local planning and businesses. The cashflow also allows me to pursue other areas of business as well.
My goal is to grow the net cashflow 30% per year. However, after hearing some stuff Snowbank proposed at B&P, I guess I should be looking for 4 digit % of growth per year.
Hope that answers the question.
PS: I used sunscreen on the beach today, great day. Guess I forgot the top of my right foot. Sunburned to a nice glow. LOL
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