$10m allocation in buckets:

▶️ $5m @ 75% LTV = $20m single family property @ $200k per unit = 100 units

▶️ Avg cashflow per door after debt service = $500/mo x100 = $600k annual + debt pay down & equity increase

▶️ $2m funded whole life @ 6% tax free = $120k

Cont’d
$120k tax free is equivalent of $170k if taxable income

▶️ $3m spread across index (50%) and development/turnkey funds, reit, or PPM (50%) @ avg 8.5% annual = $255k annual

TOTAL income: $975k/yr
Cash on cash return of 9.7% yr 1

Carry forward without touching for 15 yrs and assets are worth $48M (more than double) and after debt service, income is

-$1.4m on property
-$150k on insurance
-$255k on indexes and variable fund

$1.8m on $10m invested.
You don’t need that much $$.

You need proper strategy to protect what you have and make the assets productive 💰

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More from @taylorawelch

15 Jun
8% annual yield is not even that good…

It is the lowest bar you can set, any of the top indexes will do 8.

Let’s go higher
$2mm building with 12 renters in it…

Building is a 6 cap and NOI is $120k PRE debt service.

Find a building where market supports rent escalation if proper renovations are done.

Reno costs $300k and rent escalations + expense reduction bumps NOI to $200k.
Now the building is valued at $3.3m.

Lender gives you 70% of it ($2.3m) and you paid $2m.

Total capital in the deal: $0
Total return: $300k lump sum + $200k/yr

What’s your return ratio now?
Hint: not 8%
Read 4 tweets
14 Jun
Let me see if I can teach this in a thread…

$0 to $10M 🚀

My journey (x4) and the “ins” and “outs” of how to go from bootstrapped 6-figures to multiple 8-figure empires without using VC.

Easier DONE than SAID — so wish me luck…
✅ ACQUISITION, ECONOMICS, DELIVERY

Everything comes down to those 3 things. Three levers. Pulled correctly = rapid scale, healthy margins & good will delivered to prevent the downside of scale: reputation.

You CAN scale too fast, and you lose raving fans from poor product.
🏆 Sell first, built later…

Our first business had sales (3 of them) before we ever lifted a finger to build the product. Modern examples are modeling, think car deposits (new Ford electric, Cybertruck, etc).

Validate FIRST. Build SECOND.
Read 17 tweets
12 Jun
Bible hits hard AF…

A few gems from my morning reading that will make you rich.

Proverbs 25:12
To humbly receive wise correction
adorns your life with beauty
and makes you a better person.
Proverbs 25:15
Use patience and kindness when you want to persuade leaders
and watch them change their minds right in front of you.
For your gentle wisdom will quell the strongest resistance.
Proverbs 25:19
You can’t depend on an unreliable person
when you really need help.
It can be compared to biting down on an abscessed tooth
or walking with a sprained ankle.
Read 6 tweets
11 Jun
3 months from now I’m launching a brand that will consolidate all of this for you… and deliver a daily round up of what I think is most important
Been telling you… p/e ratios aren’t out of line. We are entering new territory and industries are merging together.
Read 4 tweets
11 Jun
As a gift for all the new followers…

I’d like to show you how to procure for yourself all the spoils of wealth — without actually having to “pay” for them.

No RT necessarily…
This one’s just to add value to the fam 💪

🧵
First- what do I mean by spoils?

Simple: whatever you want..

I have watches. Cars. Vacations. Pieces of planes. Properties (some vaca some not). Etc…

Years ago I learned a secret that allowed me to get ACCESS to these things without having to pay my money for them.
🏆 ARBITRAGE: the simultaneous “buying” and “selling” of something, offsetting the “cost” of something ELSE.

Here’s how it works… pick the thing you want.
Let’s say a new timepiece. Let’s call it ~$40k.

Here’s how I would get it…
Read 10 tweets
5 Jun
💰 How to get great real estate deals for ‘free’ 💰

Our real estate firm produced a gross return of ~$300k last MONTH and is growing by 70-90 houses per quarter.

We started with just 1 deal, and in this thread I’ll show you how.
1/ A few basics up front....

Real estate is all about “equity.” Equity can be achieved two ways (1) purchased or (2) created. Getting your money down to $0 is all about utilizing strategy 2 and creating your own equity spreads..
2/ Single family VS Multi family are valued differently...

Single family is appraised (location, comps etc) and multi is valued like a business (net operating income X a multiple which is your cap rate).

I’ll stay in the single family lane here because they’re easier.
Read 23 tweets

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