A Worthy Goal for Anyone
Many years ago, maybe 2012, I met one of our Private Lenders for lunch. At the time she was about 40 years old and had recently retired. She told me a story of how her dad was amused by her goal:
Save $1 Million in the bank after paying the taxes, then retire on the income that $1 Million would generate.
No rental properties, no flipping houses. She worked a professional career and invested her money passively in real estate deals earning 12%.
As she shared the story, sitting across from me-retired-she then shared how her dad was amazed when she did exactly what she said she would.
What’s the Income on $1 Million in Savings?
The deals paid roughly 12% per year – or $120,000 in income – by funding fix & flip deals for investors. Â For less experienced flippers (more risky loan) she charged 15%. For well capitalized, volume flippers, maybe as low as 10%.
For a full breakdown on how funding fix & flip deals for investors works, you can sign up here & I’ll email you a complete summary on how my lenders fund deals and are protected by 1st position mortgage & note.
As I sat across from her broke, I thought, Why Not Me?
If you’re been a reader for a while, or know me personally, you know that 2012 was the year I quit drinking. I’ve accumulated a few bucks since those days, but when she told me the goal of accumulating $1 million dollars to lend to other investors, it seemed like a great idea (except for the retire part-I’m having way too much fun to stop & do nothing!!)
For one group of folks reading this email, $1M in cash is laughable-as they’ve hit that & many more – years ago. For the rest reading this, you’d prob agree that $1 million in cash is a worthy. Well, certainly it’s a start!
Here are 32 properties for sale, many work for fix & flipÂ