1. Perhaps my time frame is too short...might need to add 5+ years to both (8-10yrs) for $100K and 13-15 yrs for $200K..
also: 100K/year based on WHAT of three income streams from real estate ?
1) cash-flow after all expenses
2) 1) plus mortgage paydown
3) 2) plus likely / average appreciation
As there are THREE profit centers in real estate one has to count all THREE .. with 3) being the biggest, but least liquid, usually !
QUOTE (investmart @ Feb 7 2010, 05:24 PM) Are you not sure what the meaning of passive investor is or what FT stands for? can you pls be more specific. cheers.
I presume FT stands for full time so yes "passive investor".
QUOTE (ThomasBeyer @ Feb 7 2010, 04:30 PM) also: 100K/year based on WHAT of three income streams from real estate ?
1) cash-flow after all expenses
2) 1) plus mortgage paydown
3) 2) plus likely / average appreciation
As there are THREE profit centers in real estate one has to count all THREE .. with 3) being the biggest, but least liquid, usually !
The basis was to replace my current income so I guess it would need to be liquid (#1) unless somehow the other 2 can become liquid (refinancing/selling) and amortized monthly.
QUOTE (PaulW @ Feb 7 2010, 04:35 PM) The basis was to replace my current income so I guess it would need to be liquid (#1) unless somehow the other 2 can become liquid (refinancing/selling) and amortized monthly.
#2 and #3 eventually becomes liquid .. upon sale or re-fi ONLY though !!!!
real estate with leverage is NOT a great cash-flow tool .. it is however a great NET WORTH BUILDER !
So, decide what you want: cash-flow .. OR (tax preferred and tax deferred) networth growth !!!!
QUOTE (PaulW @ Feb 7 2010, 05:32 PM) I presume FT stands for full time so yes "passive investor".
Cheers
In a classic RE JV there is a passive investor and active investor. many passive investors put the down payment amount (and get it back upon sale) and do not need to be experts in RE or spend any of their time managing it. The active investor is the RE expert, will find the deal and do everything from A-Z including managing the property and the asset or hiring others to do that for the JV. many JVs are such that the investors share net income 50/50 and profit when selling 50/50.
The trip to $100k in income from real estate is a journey that will take a while as you are finding from the responses here. Take note though that the trip from $100k - 200k in income will happen a lot quicker. Send me an email I can introduce you to some people who may be able to help you on your journey.
