All Forum Posts by: Daniel E.

Hey Kyle!

Welcome to the world of real estate investing!  You are on the right path for sure by investing in real assets that generate income and allow your money to work for you.  Just build your knowledge by listening to podcasts and keep plugging away.  I've done this and have become financially independent through building an e-commerce business and investing the profits.  Now I just enjoy helping others do the same.  

Take care and best of luck!

Hey Jose!

I'm an ex-Engineer myself!  I became financially independent by building a business, selling it, and investing the profits (with a good portion into real estate) and just want to encourage you that it is possible!

One additional strategy I would recommend looking into are Real Estate Investment Trusts (REITs). I am invested in many types of real estate deals (single-family rentals, multi-family, office, flex, manufactured housing, syndications, BRRRs, hard money lending, etc.) and my favorite type of real estate investment are REITs because they are truly passive and run by well-established companies with access to cheaper capital and better deal flow than most. You get paid quarterly passive income from rent checks in the form of dividends that are tax-advantaged (qualify for the 20% qualified business income deduction currently) and you have far less liability because you don't have a mortgage over your head.

You can also grow your passive income and portfolio size much more quickly because you can compound your earnings immediately by buying more shares rather than having to wait several years until there is enough to make a new down payment. I still like investing directly in real estate but I prefer REITs and they should definitely be another way that you diversify and grow your passive income! You have to learn how to analyze them but it's not too tough.

Hope this becomes advice you look back on as playing an important role in your journey toward financial independence!

Just wanted to throw this chart in the mix!  It shows that investing in Real Estate Investment Trusts (my favorite way to invest truly passively in real estate) has beater the stock market on all rolling 20 year period historically.  Just another reason I love REITs.

Hey Braxton!

First, I love the hustle and focus you have.  One additional strategy I would recommend looking into are Real Estate Investment Trusts (REITs).  I am invested in many types of real estate deals (single-family rentals, multi-family, office, flex, manufactured housing, syndications, BRRRs, hard money lending, etc.) and my favorite type of real estate investment are REITs because they are truly passive and run by well-established companies with access to cheaper capital and better deal flow than most.  You get paid quarterly passive income from rent checks in the form of dividends that are tax-advantaged (qualify for the 20% qualified business income deduction currently) and you have far less liability because you don't have a mortgage over your head.

You can also grow your passive income and portfolio size much more quickly because you can compound your earnings immediately by buying more shares rather than having to wait several years until there is enough to make a new down payment.  I still like investing directly in real estate but I prefer REITs and they should definitely be another way that you diversify and grow your passive income!  You have to learn how to analyze them but it's not too tough.

Hope this becomes advice you look back on as playing an important role in your journey toward financial independence!

An investment has an expected positive ROI. Gotta run the numbers and make calculated projections.

If you don't run the numbers and have a positive ROI projection then I'd argue it's not truly an investment decision being made (even though it could turn out to be a good investment).

An investment can still be a lifestyle purchase as long as their is a calculated, expected positive ROI.

Just my 2 cents!  Thanks for the fun convo starter!

Hey Carlo!

In the past few months I have invested in College Housing with American Housing Communities.  It's a Real Estate Investment Trust that owns portfolios of high quality multi-family housing in college markets.  I have become financially independent and a large part of my portfolio is invested in all kinds of real estate deals and REITs are my favorite, especially at today's valuations, primarily because it's truly passive income and you get to invest with high quality companies run by ivy league investment managers who have access to cheaper capital and better deal flow.  

Just something to consider!

First off, congrats on beginning your investing journey!  It's completely worth it. 

I've become financially independent through building a business, selling it, and investing the profits.  

As far as coaching I'd be wary of spending tons of money on a guru, mastermind, or service unless you just have tons of money laying around and will have plenty left over to invest in your business.  

There's so much free content out there that I believe you can learn what you need from and then just invest in the tools that you actually need to grow your business or investments.

Best of Luck Samuel!

Hi Heyward!

Doing a 1031 into multiple BRRRs is very difficult because of the rules around 1031 exchanges. 

There’s the three-property rule, the 200 percent rule, and the 95 percent rule. You can technically do anything you want as these rules are followed and as long as you get it done inside the 45 days.

If your tax bracket is low you may consider paying the tax if it's low too.  Otherwise, another option is to invest in an Opportunity Zone Fund to defer Capital Gains Tax and eliminate all future profit from the gains within the fund.  (Disclaimer: I'm not a tax professional, just an investor who has become financially independent and love real estate investing)

Hope this helps!

Hi Steven!

If you haven't already, I definitely recommend reaching out to wholesalers in your area and getting on their email lists.  In my experience, finding a good deal usually comes down to finding a property in some sort of distress (either property distress or seller distress).

Currently, the housing market is very hot which makes it even more critical to buy correctly.  I would definitely not go any lower than the 1% rule.  I personally have been finding better value by investing in public REITs in the current market environment.  You can still find deals but you are more likely to do so with connections to wholesalers.  To get started you can just do google searches and find wholesalers in your area and sign up for their email lists.

Hope this helps and hope you find your first deal!

You should try searching for the “County Assessor” for the county it’s in and see if you can enter the property address to see the owner’s name. Depends on where you live but this is a good first step.

- Daniel

Business And Investing Sherpa