All Forum Posts by: Account Closed

@Kayla Elliott Stocks can sound appealing , retirement income the 4% withdraw concept.  I read the book by Kiyosaki Rich Dad Prophecy, while I don't know if thats true, on the surface it sounds appealing with the semi hand off approach and click click sell if you need money. 

RE is a semi passive business when you are managing ( acquisition , rehab modes are going to require more time and attention).  But come the 1st of the month XX people are responsible for sending in rent , spread across multiple properties  , you can diversify different markets.  Rents will typically rise over time, as will asset values.  Make sure you have a good grasp on inflation , beating inflation, arbitrage on fixed debt.  These are all ways to make gains in RE.  And you can always learn. 

There are investments in RE that can be more passive typically for a little lower return.  

You have a level of control when you do your own deals .  

I know there are people who are smart and successful with stocks, im not one of them.  Im all in on real estate, all income is derived from some form of real estate rental.   The other concept scares me BUT i think its important to evaluate all investments so you understand WHY .  Im sure if i spent the last 12 years learning stocks and playing that game i would be comfortable with it. 

Also, i think one of the things with RE when you are actually healing involved in all of it , i feel you need those higher percentage returns so just learn, do the right deals, grow.  Don't go through all that, and risk your own capital for like 7% .  The growth can compound and then the magic happens. 

@Trudy Pachon thanks for the info. So then it sounds like this is your retirement plan.  Is this something you have been taking about and planning  for a while or something you came across recently? 

@Mike Lambert Thanks for the additional comments.  Is what you are talking about Vidanta or is it a different company ( If you are not trying to say the name that is fine as well , just curious) . 

@Trudy Pachon Sounds interesting .  I dont have anything to offer but have some questions.  Will you  be doing the rehab yourselves?  What do the numbers look like for purchase total ,and the rehab.  For rents, are you going to rent it out yourself?  Who will the tenant be?  ( ie local or long term vacation rental?) Are there lenders that will finance something like this or all or owner financing. What are your thoughts on the higher interest rate on the home? How did you find the deal? 

Just to update this , i went with a product called STM Short Term Medical , it is not a replacement for health insurance , has exclusions like maternity, pre existing etc.  I also looked at products called Health Care Ministries ( again understand what you are buying).  So this STM product costs about 350 a month.  Was previously paying about 1350 but with another baby we were going to be approaching 1650 for high deductible crappy insurance. Each month, i escrow the difference. So far ( only 4 months in) it is ok, we have done a couple claims, messed one up my fault , and its hard to explain to provider so we paid that one but will actually be getting reimbursed some.  I figure there will be changes in the next 3-4 years, in the mean time if i can get away with this maybe it will work.  And statistically speaking we have been and best I can tell we should be this way going forward.  This might not work if you are requiring care and meds and have lots of needs.  It took a lot of time and research and talking with my wife to get comfortable with this.  We asked our one doc what a cash visit discount was and it was like 90 to us.  Thats not a huge difference from a 40 copay then get slapped with co insurance and this and then and now i paid 100 with my insurance but have also had the pleasure of paying the extra 1k premium monthly. 

Then as the real estate investor, i started thinking time value of money on this.  Ideally if i get a lump sum and can invest this and grow it.... but you need the liquidity should you need it. So then started thinking like a credit line against something . Im not quite there yet but have this in the back of my head as part of a greater overall strategy. 

Sounds like a lot of losers except the guy who thought he bought a duplex but was actually a triplex. 

Sorry for everyone who got burned. 

@Steve Vaughan  Thats a great point, i didn't realize the depreciation rate was substantially higher than the cap gain.  I wish i was more knowledgable about taxes. I use a pro , and have read some books but long term strategy and planning is something i always need to try and brush up on. 

While a 1031 is good to defer gains if you end up not doing it then it all comes do.  I havent dont a 1031 , would like to , but i will never take a junky deal if i cant get the stars lined up. I have tried before and placed funds with an intermediary but no go. 

My take away was from either John Reeds book or Riche Weeses book.  If you die and pass on the properties, the properties are stepped up to their current market value basis and thats how you win ( other than you die...) Id have to revisit that again. 

So while depreciation can be great as you go through the years, my take away was, you are just repositioning the liability to a later date ( without 1031 scenario ) 

Thank you for the post. 

This is one of the best threads I have seen on BP .  @Jonathan Twombly @Serge S. @Mike Dymski Thank you and everyone else , those are the responses that resonated with me.

These are spoken for, thanks all!

https://www.eventbrite.com/e/tony-robbins-kevin-ol...

Kevin Oleary and Tony Robbins , ************* and some other people will be in town next week.  I have an extra basic ticket ( they will send to me a couple days before the event) .   These things i enjoy ( but they normally do have programs there they sell and sometimes big time gurus.  Im particularly interested in Tony and Kevin .   You don't have to go with me but i will be getting an extra ticket. Or we can go together or meet there.   I went last year but only stayed about half the day ( Tony wasn't there) but Robert and Barbara from Shark Tank where there , it was great.  I only have one that im getting free  ( but still worthwhile for the small price they sell them for in my opinion ) if you are available.  Or you can step up to the 1500 package and get a picture with Tony. 

Thanks 

@Scott Passman  Thats great, i was thinking to venture into that book as well. I would ask you how it is but  I know the answer that is good.  I was trying to flip through some of the daily observer papers they have on their website and its good and interesting stuff. These guys really seem knowledgable.  Thanks for commenting .