All Forum Posts by: Andrew Fallwell

@Lionel Li first off, congrats on your savings habits. Easier said than done. I would say it depends on how long you plan on staying with the folks. If you'll truly be able to BRRR another property, you could just delay and do the co-op arrangement in 6-12mo. You'll have to live somewhere in NYC, and having some real estate there would provide nice diversification to your midwest portfolio. Both stylistically (capital appreciation vs. buying a value play) and geographically. Just my two cents.

@Lee Bell Since I haven't met this person, I can't say one way or the other. That being said, a good rule of thumb is to steer clear of advisor's who tell you they can outperform the market (no one has the crystal ball), and advisor's who do not or cannot explain to you how they are paid. Try to stick with a person who has a fiduciary requirement to you.

@Joe Splitrock it sounds like you have a good base from an investment management perspective. But, that's only one part of true financial planning. A good CFP would ask you things about education planning for your kids, any legacy goals for family or charities, making sure you are up to date on estate planning and communicating with your attorney, getting a plan to make sure the investments line up with what your CPA is doing, reviewing your insurance (life, disability, long term care, property casualty) with you, and modeling your financial/retirement plan to make sure it can handle different economic environments.

To sum up, it's more about the planning process than the plan itself. The only constant in life is change, and it can be helpful to have a personal CFO walk through these things with you.

@Joe Splitrock I agree that many advisors shy away from RE as a recommendation.  I would say much of the time it is from not fully understanding the asset class and its benefits.  There are a few ways you can dice the fee with clients that have concentrated assets like rentals.  You could charge a percentage of net worth, but I honestly think that's a bit unfair to the client because I'm not actually managing all of your net worth.  Personally, I prefer a flat fee for plan structure with those types of clients.  That way I am only incentivized to give advice, not sell a product. 

@Heather H., Frequently it does.  Reason being is that since my finances, capacity for risk, and tolerance for risk are many times different from my clients the recommendations change.  It's not so much treat them how I want to be treated, but treat them in their best interest based on their specific situation.  

@Cassi Justiz There are a few things.  First, there is a control factor with RE that I do not have with the broader stock market.  I can know Tesla's a great investment, but then Elon Musk goes on Joe Rogan and smokes weed.  While there are always uncontrollable factors in any investment, I can reduce them by having a small business where I make the decisions.  Second, there is the introduction of leverage to increase your return profile which if used correctly can significantly help Net Worth growth over time. 

My ideal investment is a BRRR that cash flows on the back end with leverage. That being said, I am more concerned with my cash on cash return, as that's the bogey I use to measure against my other investment performance.

@Jason D. Great question. I have a company SIMPLE IRA which is about 70% International and Emerging Markets. Low cost actively managed mutual funds for that portion. The other 30% is indexed US ETFs. I put enough in to get my match. I purposefully do not fully fund it.

All of my free cash flow goes into my real estate business, and building a base of rental income.  Nothing too crazy.  

Relatively new BP member who is also a fee based CFP.  I find concentrated positions held in small businesses/RE to be the best wealth generator a person could have.  Feel free to ask me anything about investments, financial planning, personal finance, etc. 

This does not constitute a formal fiduciary based financial planning agreement, and should not be construed as client specific planning, investment advice, legal or accounting. 

Check out Z Barros.  He brokers at FC Tucker EMGE and is investing along the way.  Feel free to message me and I'll pass along his number.