Strategy session needed

Strategy session needed

Allen MarisPro Member
Investor · Santa Ynez, CA · Member since 2008 · 375 posts · 175 votes

Not exactly sure where to post this, so figured the general personal finance is a good enough place. As others are saying, I'm finding financial planners (both fee-based and commissioned) just don't have enough personal real estate investing experience to offer guidance for me. 

I fully advocate seeing a planner for overall, but expect they're going to say diversify, stock market, save save save, etc. In case this triggers a keyword for you and you're considering it, please do yourself a favor and see an hourly fee or flat fee CFP. As they say, if they're not charging you, they're getting paid another way and that's called a conflict of interest. I just experienced this with a financial advisor that sold someone a bunch of annuities and made a very nice commission but the investor made almost no money at all in the investments. Sad that the financial planner made about 300x what the investor made. 

Tangent aside, I'm looking for someone that can look at my holdings and help me figure out some paths to where I want to go, larger multi-family. I've been investing very part-time for 20 years, and currently own a couple SFRs, but had 5 at one point and I'm wanting to scale a bit more. 

Does anyone have any contacts or recommendations for what I'm looking for? 

Thanks for the input BP community!

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
3y
Quote from @Allen Maris:

Not exactly sure where to post this, so figured the general personal finance is a good enough place. As others are saying, I'm finding financial planners (both fee-based and commissioned) just don't have enough personal real estate investing experience to offer guidance for me. 

I fully advocate seeing a planner for overall, but expect they're going to say diversify, stock market, save save save, etc. In case this triggers a keyword for you and you're considering it, please do yourself a favor and see an hourly fee or flat fee CFP. As they say, if they're not charging you, they're getting paid another way and that's called a conflict of interest. I just experienced this with a financial advisor that sold someone a bunch of annuities and made a very nice commission but the investor made almost no money at all in the investments. Sad that the financial planner made about 300x what the investor made. 

Tangent aside, I'm looking for someone that can look at my holdings and help me figure out some paths to where I want to go, larger multi-family. I've been investing very part-time for 20 years, and currently own a couple SFRs, but had 5 at one point and I'm wanting to scale a bit more. 

Does anyone have any contacts or recommendations for what I'm looking for? 

Thanks for the input BP community!

CRE.  Counselor of Real Estate.  These are fully vetted professionals (CRE is an affiliate of the National Association of Realtor) who specialize as fee consultants for investment and commercial real estate.  
Private Mortgage Financing Partners, LLC
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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    Financial planners get paid for the assets they manage.

    Would talk with both the most active realtor in the market and the city or county planners.  Ask them what they see needed.  

    Depends on your families situation and desires.

    Couple of avenues to consider or to expand your thought process.     
    Your area looks great and you're close to LA. Use your strengths. Recommend you don't stick with SFH unless personal strategies. Or MFH.

    1.  Personal.  Capital gain tax free $250,000 per spouse.  2 out of 5 years.  I would start moving house to house and spend 2 years at each  so you can sell tax free up to $250 per spouse.  You can have your current house.  Rent it.  Move to second house.  Rent it.  Move to third house.  Put all three up for sale.  No rush.  Leave them priced high.  No need for 1031.     
    2. Spice up the houses and switch to STR if allowed. Even your own house do STR. Buy an RV. Put it away from town, cheap, stay there or at one of the other houses when yours is rented. Retrofit the houses with more bedrooms and bathrooms as possible.
    3.  Do subdivision development.  Look for ugly properties or MIS sized properties.   People like views, rocks, trees, water, walk out basements.  Rocks, trees and water you can add.  
    4.  See if you can do Tiny house concept.

    As always check zoning and do the numbers.  But use your environment strengths.  

  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    Look at buying the worst house in a neighborhood. Look for ADU potential. Lipstick on a pig.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Allen Maris:

    Not exactly sure where to post this, so figured the general personal finance is a good enough place. As others are saying, I'm finding financial planners (both fee-based and commissioned) just don't have enough personal real estate investing experience to offer guidance for me. 

    I fully advocate seeing a planner for overall, but expect they're going to say diversify, stock market, save save save, etc. In case this triggers a keyword for you and you're considering it, please do yourself a favor and see an hourly fee or flat fee CFP. As they say, if they're not charging you, they're getting paid another way and that's called a conflict of interest. I just experienced this with a financial advisor that sold someone a bunch of annuities and made a very nice commission but the investor made almost no money at all in the investments. Sad that the financial planner made about 300x what the investor made. 

    Tangent aside, I'm looking for someone that can look at my holdings and help me figure out some paths to where I want to go, larger multi-family. I've been investing very part-time for 20 years, and currently own a couple SFRs, but had 5 at one point and I'm wanting to scale a bit more. 

    Does anyone have any contacts or recommendations for what I'm looking for? 

    Thanks for the input BP community!


     Buy rentals with 10% or better net caps,  I picked up more recently with 20% net caps

  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    go out of state! 

  • Allen MarisPro Member
    OP
    Investor · Santa Ynez, CA · Member since 2008 · 375 posts · 175 votes
    3y
    Quote from @Jeff Nash:

    @Denver McClure can help with

     Hi @Jeff Nash - thanks for the thoughtful response. I’ll reach out to Denver. 

  • Accountant · Franklin, TN · Member since 2023 · 204 posts · 91 votes
    3y

    I have a recommendation for you that will also consider the tax situation. DM sent.

  • Accountant · Dallas, TX · Member since 2020 · 22 posts · 3 votes
    3y

    Hi Allen,

    If you are set on moving to larger multi-family properties you might consider selling both single family rentals in a Sec 1031 like-kind exchange and using the proceeds as a down payment on a larger multi-unit property. Sec 1031 is a tax election to defer the taxable gain of your rentals, thus allowing you to use the entire net proceeds to invest in another property. You would need to consult with a qualified tax professional before executing this strategy as Sec 1031 requires significant planning and not every transaction will qualify. This is one area where you definitely don't want to figure it out on your own. I am a CPA and have completed several Sec 1031 exchanges for my clients, feel free to reach out if you would like to discuss your situation. 

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Allen Maris:

    Not exactly sure where to post this, so figured the general personal finance is a good enough place. As others are saying, I'm finding financial planners (both fee-based and commissioned) just don't have enough personal real estate investing experience to offer guidance for me. 

    I fully advocate seeing a planner for overall, but expect they're going to say diversify, stock market, save save save, etc. In case this triggers a keyword for you and you're considering it, please do yourself a favor and see an hourly fee or flat fee CFP. As they say, if they're not charging you, they're getting paid another way and that's called a conflict of interest. I just experienced this with a financial advisor that sold someone a bunch of annuities and made a very nice commission but the investor made almost no money at all in the investments. Sad that the financial planner made about 300x what the investor made. 

    Tangent aside, I'm looking for someone that can look at my holdings and help me figure out some paths to where I want to go, larger multi-family. I've been investing very part-time for 20 years, and currently own a couple SFRs, but had 5 at one point and I'm wanting to scale a bit more. 

    Does anyone have any contacts or recommendations for what I'm looking for? 

    Thanks for the input BP community!

    CRE.  Counselor of Real Estate.  These are fully vetted professionals (CRE is an affiliate of the National Association of Realtor) who specialize as fee consultants for investment and commercial real estate.  
    Private Mortgage Financing Partners, LLC
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