All Forum Posts by: Dan Shelhamer

Originally posted by @Andrey Y.:

Originally posted by @Anthony Gayden:

15k out of your last three checks. That is a bad idea.

Like you, I don't believe in using the TSP as a method to build wealth. However if you insist on doing it, you should do it right.

The first 5% that you contribute to the TSP is matched by the government. If you contribute $5000 on three checks you lose out on the match for the other pay periods. Instead you should spread that amount out.

Why is that a "bad idea"? Employer-matching doesn't kick in until 1/1/2018 for active duty anyway. So I just put 50:50 to traditional:Roth TSP to get close to the limit since I haven't contributed in 2017 yet.

If you only have a short period to try & reach your max amount allowed for 2017 then you will have to do it this way for now.  However, in the future you want to make sure you are investing using "dollar cost averaging".  Buying a fixed amount on a regular schedule (monthly).  This way when the market dips, you win because you are now buying more shares.  This is the best way to win in any market.

@Marcia Maynard @Mindy Jensen whoops, thanks so much for helping with that!

I am a Buy & Hold Investor and currently have 6 properties in the Northern Suburbs of Chicago (Lake County).  I will be moving to Phoenix in spring-summer of 2018, and am wondering how I will handle the management of these properties from afar.  I currently have a great handyman who is very responsive, and also my realtor will show my properties when their are vacancies.  I believe that I will try to manage my properties from Arizona since I seem to have a team that will be able to fit my needs.  I just don't see why I should pay a PM 8-10% to make the phone calls to the people that I already have in place.  I am looking for input & advice from any landlord's and/or property managers out there who might see something that I am missing.  Thanks!

Good morning!  I am planning on moving out to the Phoenix area in the spring/summer of 2018.  I want to connect with some realtors in the area who ALSO invest in Real Estate themselves, as I will need a realtor who understands the investing side of Real Estate (rental properties).  I will be in Phoenix February 1st-10th, and would like to look at several properties for both a primary residence as well as investment options.  I am looking at the surrounding Phoenix suburbs (Gilbert, Chandler, Scottsdale, Glendale, Peoria, Mesa, etc.).  Please reach out to me if you are interested in connecting.

Omar, You have 2 options with the car. Either sell it and buy a car in cash or pay it off. A $560 car payment while making $2600/month and trying to be a RE investor just won't work. Especially if you have a vacancy or big repair, you can find yourself backed into a corner pretty quickly. Like yourself, I also started at age 24 with buying my first home which I still live in, and will be a rental when I move. I got a FHA loan with 3.5% down. I then "house hacked" it and had my brother and buddy paying most of the mortgage for a few years. This has allowed me to acquire 3 more rentals in the last year. I would suggest looking for a duplex with FHA financing and rent out the other side to have it cover most of your expenses. You can then see if you like being a landlord while also being able to save up quickly for your next down payment. Good luck and feel free to reach out if you have any questions. "Live like no one else will, so that one day you can live like no one else can."

@Lane Kawaoka thank you for the info!  I have heard about syndications.  I would think your return on your money invested would be much smaller on a syndication since their are so many people to pay out?  Also, with a syndication, do you actually own the property?  If I invested in a syndication, would I still receive the same tax benefits?

@Grant Greene thank you for the info!  I definitely am interested in learning more about how to finance an unlimited number of properties.

@Jeff Schneider that's great to hear!  My parents live in Wheaton, and will be living in Phoenix for about half the year once we move.  What is a disclaimer deed?

I don't necessarily believe it is a risk factor.  Knowledge mitigates risk.  Buy & Hold investing is way less risky than blindly picking stocks, but which one is easier?  Most people don't want to put in the TIME it takes to learn to invest the correct way.  They are complacent and miserable in their 9-5 job, and instead of using that to fuel their thirst for knowledge, they just speak negatively about it.

Originally posted by @Terry Lao:

@MarieChele Porter

Even Bradon of Bigger Pockets says that 90% of people on BP will never take action. You can call it negative, liquid, or whatever. I tend to think it is the risk factor. Everyone has their risk factor. Some have high tolerance, others low. For those that have low risk, can put in bank and get 1%. For those that have high, can play the stock market.

I like RE due to the cashfow, appreciation, and equity build up with monthly PI payments.

Terry Lao

@Bob Okenwa thank you for the awesome information!  We have been to Scottsdale & Phoenix a few times and absolutely love it.  I will be out there early next year to meet with some realtors and check out some homes.  Between the awful winters here & the ever increasing taxes we just need to get out of Illinois!

@Harjeet Bhatti thank you for the information.  Can someone be on the mortgage without being on the title?