TIMBERMOSS CAPITAL
  • About
  • How It Works
    • Track Record
  • Tools
    • Book Download
    • Blog
  • Contact
  • Join

TIMBERMOSS
​CAPITAL
BLOG

3 Must Have Qualities I Look For In Every PASSIVE Investment I Make

7/10/2020

0 Comments

 
Picture
If you start out investing as a spring-chicken, you may be excited to dive into scrubbing moldy cabinets, exterminating bug-infested corners, painting, repainting, and installing sheetrock until your arms are weak with exhaustion.

The truth is, the hustle and bustle of real estate is fascinating and it’s thrilling to be a part of it all. Investing in real estate provides experience in both the finance side and the construction side of things. But after a while, you may begin to feel like you need a more simple option.

As we get older, life is more complicated instead of less so, we have kids in the house, and honestly, cleaning someone else’s mess is the last thing we look forward to. So, in an effort to continue to provide good quality housing for people, my approach has adjusted slightly over the years.

​Quite simply I want low effort, low-risk projects that provide cash flow so I can spend my energy with my own home and family. Hey, if you can dream it, you can do it. 

#1 - Low Effort 

The investment trait that’s the most important to me these days is that the effort required from my end is low.

Parenting also means you’re a master coordinator of swim class times and play dates and meal prep. This also means I barely have time to ensure my socks match, much less deal with tenant applications and maintenance requests.

I’ve had tenants on the verge of eviction purposely clog sinks and leave water running only to damage not just one or two units, but three units! You better believe I had piles of insurance and repair paperwork to sort through.

When my kids are tugging at my sleeve to come play with them, I never want to have to say, “Sorry honey, I have all this insurance paperwork to do.”

​Therefore, an investment opportunity must rank low on the required effort scale. 

#2 - Low Risk

Investments are like a playing piece in a giant game of Jenga. The whole thing topples over in a certain amount of time (the market cycle) and then you can re-stack the pieces and play again.

When will the Jenga blocks begin to teeter so much that they crash?

At this point, the tower is still standing, and many people like to speculate, but no one really knows how much time we have until the next market cycle will come around.

​I’ve been through multiple market cycles, and I want to position my portfolio such that I’m accounting for the possibility of that tumble. Thus, low risk is another main priority. 

#3- Cash Flow

Gamblers spend hours, sometimes days at the casino hoping for the chance to hit it big. More often than not, they come home empty-handed.

In an extremely opposite manner, investing for cash flow is my game. I want my investments to cashflow as-is, before improvements.

That way, if the Jenga blocks do tumble, I know that the investment will stay afloat until the tower gets built again.

​Appreciation is great, but I want to be able to sleep soundly, knowing that I can count on the cash flow. 

​Attractive Investments 

I’m no professional investor, but I do have a few years’ experience and have discovered my preferences for this stage of life. 

Investing passively in reals estate syndications have met my requirements of being low effort, low risk, and having positive cash flow.

I like the idea of having an experienced team in place working the renovations and following the business plan on my behalf. They do the tough stuff while I receive regular cash flow checks, tax benefits, and progress updates. Meanwhile, I have all the time in the world to play with my kids.

​Passive investing wouldn’t have made sense for me as a spring chicken. I was way too excited to roll up my sleeves and get my hands dirty on a fixer-upper. But now? Naps and story time are much more valuable. 

​Conclusion 

At this stage of life, investing passively in real estate syndications that are low risk, low effort, and provide cash flow, allows me to have time freedom while simultaneously building wealth. It’s not a get-rich-quick strategy, but I’ll be so happy to look back and know that I made the best of my time with the kids while they’re little while also focusing on our financial future.

​That’s what it’s all about, right?
Picture
0 Comments



Leave a Reply.

    Justin Grimes

    Ally in generational wealth creation & protection.
    Proud husband & father.

    Archives

    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019

    Categories

    All
    Definitions
    Education
    Reits
    Returns

    RSS Feed

Subscribe

* indicates required
Home
About
How It Works
Webinars
Blog
Contact
​Join
​Terms & Policies
Picture
© COPYRIGHT 2020. ALL RIGHTS RESERVED.
Timbermoss Capital does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Timbermoss Capital and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources that Timbermoss Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.
  • About
  • How It Works
    • Track Record
  • Tools
    • Book Download
    • Blog
  • Contact
  • Join