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All Forum Posts by: Bryan Clement

Bryan Clement has started 24 posts and replied 159 times.

Post: New Member in Brunswick, Maine

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
Welcome to Biggerpockets! It will help you in so many more ways than you think it will. Also @Bob Langworthy, where are these meetups? I can never find them under the events tab.

Post: Would you liquidate your 401k to purchase your first property?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
Hi, so my answer is different based on the situation: 1. If you are a first time homebuyer, there are programs that help you come up with the fees and down payment. if you needed a couple thousand extra to close the deal, I would say go for it because owning your own residence/eventually being able to rent it out will be a much better return than a 401K. But, I would limit this to a few thousand dollars that you can easily repay in 60 days or at least handle the tax penalty if you had to. 2. I would NOT take a large distribution. between taxes and penalties you'd be getting 50% of what you actually withdrew in the end. 10% penalty + paying income tax on it = Terrible idea. 3. If you have the ability to take a loan from your 401k, I would do that all day as long as the interest rate was not crazy high. Hope that clears things up!

Post: Yellowjackets in rental. Who is responsible?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
This is a small issue. Just take care of your tenant with the smaller issues so they will be more likely to be cooperative when you get to the larger ones. My two cents.

Post: So what's holding you back?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
Well you need one of three things from what I've heard:

1. Hustle
2. Money
3. Deal

I don't have the last two, and the first one I am doing but it takes a lot longer. Currently in the early stages of starting up a property management company.

I'm trying to Grant Cardone my stuff, which means, as per @Ben Leybovich's recent post:

1. Start cash-flowing businesses.
2. Grow the business 10Xponetially
3. Shove all that money into Real Estate and make it produce passive income.

With my debt taking up all my cash flow from my job, it makes step #1 #2 and #3 close to impossible.

Originally posted by @Frank Patalano:
Originally posted by @Bryan Clement:

Bad debt. Never go into mountains of debt without being able to garner revenue specifically from it. I got into some bad debt for assets that, yes they are helpful, but in most cases I could bring in revenue without them. So now I have month to month payments that are hamstringing my budget and keeping me in a job I hate.

 You can still make money with a lot of bad debt but it will take more Partnerships and creativity.

Post: So what's holding you back?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104

Bad debt. Never go into mountains of debt without being able to garner revenue specifically from it. I got into some bad debt for assets that, yes they are helpful, but in most cases I could bring in revenue without them. So now I have month to month payments that are hamstringing my budget and keeping me in a job I hate.

Post: Bitcoin is 10k again what are you going to do now?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104

Uh..... not buy it? Because you are not buying anything in the first place. It's literally just hyped up and that's the only reason it's worth anything.

Post: I have my first Rental, now what?!

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
Going back to my days in loan servicing, it's my understanding that you can only have 1 FHA loan at a time, unless there is something beyond your control like your job moved out of state or you inherited a house with an existing FHA loan. However, there are other low-down-payment loans that you can take advantage of as well. If you live outside the city limits, you can do a USDA loan and an FHA loan at the same time, as they are different departments. USDA only loans on SFH but my loan in 2017 was 3.75% for 30yrs, 0% down. And my credit score was 640 as well! Hope it helps!

Originally posted by @Jay Hinrichs:
Originally posted by @TJ Tyler:

@Jay Hinrichs now that is a great question I ll ask my lender. Thanks A lot!

fairly certain but I am not an expert at FHA owner occ loans.. but me thinks you can only have one out at a time.

Post: Do you buy small MF (2-4 units) for cash flow or appreciation?

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104

I have not dug into real estate yet other than my live in flip that I am currently doing, but from my college economics courses, I would say that typically appreciation tends to be a mirage; it's not really there. What is omnipresent however, is inflation. Properties appreciate in value compared to the dollar because the dollar is weakening. And there is supply and demand, certainly some areas will outpace others. for example, 2004-5-6-7 huge gains in LA, NY, SF and other metropolitan areas. Then a crash in 2008-9-10 with prices in those areas in free fall. If you average the gains and losses of the appreciation and you don't include the cash flow, all you end up with is meeting inflation limits (and the inflation stats posted by the government is complete bogus. How can we print so much money and have inflation less than 2%?)  Which, to me means you have to buy anything for cash flow or you won't really gain anything, you'll just be treading water.

Post: How Universal Basic Income Could Change Real Estate Investing

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104

With apologies to those on this site who have a differing political viewpoint than I, I will say one thing: We basically have this already. In Maine where I live you can be better off living off the state with welfare/unemployment than you are actually working a job, if you make $30,000 a year or less (which goes quite a long ways in Maine, I might add. I should know, I make less than that at my W-2.) All this without even needing to pass a drug test. The problem with UBI is not that it wouldn't help many people with startups/being happier/being healthier, the problem is that more people would take advantage of it than the people who would actually use it for what it's meant for. In addition, how many would get complacent, and say, well since I have this $12,000 coming in every year, why do I need to start a business? And I do understand, people need help sometimes! I've got several good friends who have needed state assistance to feed their kids when they start out. But any type of long-term program will by default bring on problems with overuse of the system. It's the proverbial argument of giving people fish verses teaching them to fish. If everyone is given fish, eventually there will be no one wanting to catch them. My two cents. 

Post: Real Estate Investing in Maine

Bryan ClementPosted
  • Rental Property Investor
  • Union, ME
  • Posts 161
  • Votes 104
Originally posted by :

@Kristine W Taylor

do any of y'all know anything about Milo, Maine? I have a local (San Antonio, TX) lead on a single family home there, and I know nothing about the area. Appreciate any input you can provide about the market. -Matt

I would stay away from anything north of I-95 and North of Bangor. The timber/paper industry's decline has hit those areas really badly. I know someone who had a triplex up in Piscataquis county, had trouble finishing his rehab because people would watch materials and things being dropped off in the building, and would go uninstall and steal it overnight. People do make it work, but they tend to be local and can manage the properties more closely. Coastal Maine is a great investment area though, highly suggest the area between NH and up to Bangor! Good luck!