All Forum Posts by: Blake Edwards

@Christine Alanes - Nice to have your husband on board.  Who had to do the convincing for the other one, you or him?

@Tiffany Smith - As long as the match is there, who would say no to free money?  Having control and being able to make the decisions that make sense for you is huge.  We're in your neck of the woods sometimes, if you ever want to talk shop.

@Luke Ski - Sounds like the government pension is something people tend to overlook a lot of the time. I kind of look at that as a separate savings account. In that case, why wouldn't you accelerate your capital to REI. That, and no middleman is a huge advantage.

@Joe Splitrock - I agree.  Every time I do a deal where nothing goes completely sideways, I start to get nervous for the other shoe to drop.  I know it will eventually so I agree that it's good to have some sort of nest egg, or protection to fall back on

@Mark S. - I have a 457 from a previous life as a Power Lineman.  I maxed it out before I got into RE.  For investing in real estate, I now throw some money into a brokerage account, a high yield savings, and a checking account for liquidity purposes to jump on a property as quickly as I can.  That gives me enough diversification to have some choices.  The draw to tap into the 457 is huge, but I am not crystal clear on the tax impact, penalties, rollover options, etc.  

@Brian Beck - At least you are getting the match, free money.  I agree having cash on hand makes it easy to move when the time is right.

@Adam Fiore - I know of a few investors who do this.  Very smart in my opinion.

@Matthew Otero - Once you reach that magical cash flow number, do you think you will bounce on your W2 job?

@Chris Naviaux - Yeah I guess it's all up to where you are in your journey and your immediate and long-term goals

@Keith Ferzola - That's on par with what I do, but I'm looking at switching some things up in the future.

@John Perrings - I gotta ask...Do you ever go to Shooting Star Cafe?  DELICIOUS

@Andrew Kougl - That's an interesting strategy a few other have mentioned here.  I'm looking into it now as well

@Solomon Morris - Yeah I saw the draw of REI as well. I was probably insufferable for a few months after it "clicked"

@Lane Kawaoka - As always, great info man.  I'll be re-reading your post a few times for sure.

@William Allen - I'm sure that catapulted you to gain some huge momentum.

@Hunter McDonald - Good man!  The more deals the better!

@Thomas Rutkowski - I like it.  Very intriguing!

@Luke Anderson - That's pretty savvy.  I like how there are creative ways to make your money work for you.

@Cara Kennedy - "Money babies."  Thank you.  I'd like to tell you I'm smart and thought of that, but I stole it from somewhere.  A dumbed down (i.e. right up my alley) version of Rich Dad Poor Dad.

@Todd Concienne - Are you concerned about the perceived volatility of gold?

@Deneuve Brutus - Once you build up a bit more of a portfolio, do you see dropping your number down to get the match?

@Tom Makinen - Yeah better to see what is appealing to you as an investor and do your dd to see if it's feasible.  Everyone is different

@Logan Hassinger - We always tell our clients (and anyone who is within earshot) the control you have over your real estate investments is one of the best ways to build generational wealth.  Reducing your taxes and liabilities is also a huge piece of the puzzle as well

@EJ K. - Nice you house hacked during residency.  With how much you worked, I'm sure it was a no-brainer.  

@Account Closed - I agree.  Free money is free money.  Diversification helps give an investor options as well.

@Gabriel Cardus - At least your getting the match.  And yes, I'm sure it was nice to put that chunk toward getting off the ground with investing

@Adam Reeves Thanks man.  With your wife contributing to hers, I'm sure you're getting the employer match. AKA Free Money.

@Oleksandr Ivanovskiy - That's tough to see you balances in 2008 like that.  I agree, you want to avoid being taxed on it when you take it out, and if you can't, you better be prepared one way or another.

@Andrey Y. - Yeah if you're not FI yet, It could be seen as "wasting" money to some.  To others, diversification is the draw.  If you have the capital to spare, why not max out as you are.

@Jennifer Stradtman - No bank involvement makes a your offers stronger as well.  No financing/appraisal contingency really makes an offer stand out.

@Matt Burns - Yup.  Get that additional income (free money) fro your employer at the very least.  

@Mark Robert - Did you have to pay an early withdrawl penatly?

@Aaron Hunt - I agree with you that stocks are sometimes boring.  I enjoy the ability to control my RE investments as you do.  Also reducing your AGI has to make a difference come tax time.

@Damaso Bautista - That's great discipline.  When you take a loan from your 457, do you pay an early withdrawl penalty?

@Veronica DeSalvo - Yeah it's great to hear what others are doing, and emulate (i.e. copy and steal) what works for you.  I'm getting a lot of great ideas from this thread on how to make my money work for me according to my timeline and goals.  Congrats on your new journey!  Keep us updated how it goes, and when you close on your first property!

@Alan Blitz - That 5-7% will come in handy when you want to jump on a good property.

@Carl Fischer - "Go from forever taxed to never taxed ASAP." - You just made my heart flutter

@Bernadeau C. - I think that's a smart way to get some momentum going.  Once you're up and running, it may be time to take a look and check up on things as they pop up.

@Fitzroy Harvey - So simple, yet so effective!

@Mike Hyder - I agree, why not look into tapping into money you have socked away

@Brian Briscoe - Gotcha.  Seems like there's always a "catch" to any govt sponsored plan

@Travis Boswell - First your wife, and now you are going to leave to pursue REI full time? Congrats man! Thats exciting so you will have to keep us update as your journey progresses

@Jackie Comitino - Yeah having that money stare at you could be a call to invest it into RE.  But the deal or property has to be good for to be hit with a penalty.  If you can avoid the penalty I don't see why one wouldn't

@Michael P.- " Why would somebody on the David Green team be asking this question, and not already be a billionaire from their out of state brrrr portfolio" - HAHAHAHAHA!  The year is young, my friend.

@April Ten - At least your getting your match.  And more cash means more investments.  Win-Win

@Tracey G. - That will ramp up quickly for you as well as have a good chunk still liquid.

@Mike Dymski - I think I'd like it for the tax benefits to lower your AGI if nothing else.

@Randy Bloch - Flexibility is nice.  Better to have options than be forced into a corner.

@Michael D. - That kind of thinking really builds discipline which I know transfers over to your investing career.

@John Edwards - Good luck man!  You got this! With a last name like that, the sky is the limit for you ;)

@Hart Pearson - I agree that if you're trying to be FI, better to put the pedal to the medal and pour your money into assets.  A 401k is a sort of a capsule as you say, and there are was of opening that capsule, but is it worth it in the long run is the question.

@Account Closed - That's a nice setup.  Contributing up to the max, maxes out your portion.  Lowering your AGI is a huge draw for me as well.

@Diane G. - And do you feel that leaves you enough liquid left over for your investments?  Love the Sunnyvale library, by the way!

@Larkin Adey - I agree.  Different strokes for different folks.  The main point you drive home I couldn't agree with more.  Live conservatively. Not too complicated!

@Oleksandr Ivanovskiy - Can I ask why you weren't happy with the 401k's ?  You can PM me if that's better for you.

@Dylan H. - I think that's a great way to go.  Get that free money, and control the rest to be able to move on something quickly if needed.  

@Mark Welp - Is it pretty easy to withdraw penalty free from your account(s)?

@Will Fleischer - I agree being able to solely control your cash is a benefit.  Are you concerned at all about your AGI come tax time?

@Nik Corbaxhi - I agree.  I see it's a matter of where one is at in their investing career which determines how and where they park their money.  Either way, you'd be crazy not to put the minimum in to get the match.  Nothing like free money! Nice job

My brother (also my business partner) and I are looking for recommendations for a good tax person this year.  We don't have an enormous portfolio, but we do want to be organized, and clean.  Who do you know that you've used, and like?

@Christian Nachtrieb - That's pretty cool! You already know how to build a successful business so REI should be a breeze to ya!

@Anthony Gayden - Good to know.  Like with everything, time is of the essence.  Got to make things happen so you're not left out in the cold in debt to Uncle Sam.  I'll look into this.  Thanks for the idea!