Cash flow updates from 3.5M NW
About a year ago I posted that I am growing my NW but unable to convert that NW to a reliable monthly cash flow to get closer to the FIRE goal. Since then I joined two HNW and UHNW groups and talked to other individuals. Based on those discussions I have: Participated in 2 commercial buildings purchases, 100k and 160k respectively, netting 1500 and 1790 quarterly. Invested into partnership buying and apartment building, 60k netting 590 quarterly. Invested 400k in a real estate deal for Marijuana business, netting 12k quarterly. No appreciation participation, unlikely the previous deals. Invested 420k in a short term rental, a lot of work but own 100% and netting 62k annually. But will need to do a new roof for 30k and other large ticket repair items. But the property also appreciates. The conclusion is that I am closer to the 170k that I need yeach year but still ways to go. Need to keep looking for these alternates deals as no dividends will get me there. #investments #fire #cashflow
How did you find UHNW and HNW groups?
Got invited after being verified by moderators in one Reddit group to actually having the NW and from there got invite to the other one at a dinner meeting I went to. Both groups had interviews and verification requirements.
@op can you share which subreddit?
Are you having to do the work to keep track of all these cash in-flows? Or have these investments proven to be truly passive in nature?
Track and verify yes, means logging into a portal and verify they sent the money.
Send me 100k, I will pay you back monthly
Returns seem kind of low to remove so much liquidity. You're bringing in half the historical S&P return.
I know but the s&p growth does not produce monthly cash flow + in the first 2 and last deal there is an appreciation of the real estate when they are sold. Hard to estimate those but that could beat the stock market returns.
You sell for cash flow.
Check out qyld and ryld they are covered call ETFs. They have been beat down but yielding 14% so you could get in and get some gains as well. They aim to pay 1% monthly dividends. That can help get you to your number.
If you had to spend 420k which nets 62k per year…why would the previous owner sell it to you…
Divorce and they did not want to deal with the new regulations, permitting for STR etc.
How do you have so much energy to do this after a full time gig?
Those are garbage returns relative to index funds especially given lack of liquidity. You got scammed bro 😂 Just chillin here with $5M in VOO
Interesting life, thanks for posting!