All Forum Posts by: Dylan Wells

@Keyonte Summers

Sorry for my awful grammar in my previous post but I am always naturally skeptical of anything that I listen to and it is when I try and experience things for myself that I see the truth. Considering that you are from Michigan, do you feel that Detroit will make a comeback in lieu of much of the manufacturing in the area being outsourced to other countries such as Mexico and China? While I do not have a problem with jobs leaving to other countries, what worries me is an individual’s ability to anticipate, and adapt to trends in the economy. As an economics minor, you learn that some countries naturally have a comparative advantage in producing goods, which means that they can make them more efficiently and for less money, this could be due to negative factors such as the exploitation of the workers in that country or it can be as simple as they have more technologically advanced procedures then us and and greater economies of scale which enable them to produce goods more efficiently. While I do think that there should be boundaries on how much we should export versus what we import, outsourcing labor to different countries keeps prices low and inflation in check. It is when we try to mess with the “invisible hand” of the economy that we get punished and the economy suffers.

With that being said, I think that Detroit should focus on transitioning from a manufacturing based city to something that is more technologically innovative. Of course this would require a significant investment to completely revitalize the city but I think that this is how Detroit will make a comeback. It’s also very interesting that in 1940s to late 1950s Detroit was actually the richest city in the United States, and if Detroit achieved that title once, surely it can achieve it again. I would love to hear other people’s opinions on what can transform Detroit as well!

I recently saw this video on "Meet Kevin's" Youtube channel about the $12,900 house and quite frankly, I think that tge Detroit market can be very risky if you don't partner with someone who has been working in that area for quite a few years as it super fascinating to see that if you are one block to close "8-Mile" your investment can go from a guarantedd rental to a very risky investment. Granted I am not a real-estate agent/broker, and I am not from the area so my knowledge is very limited but from what I've heard, Detroit can have some demons lurking if you aren't careful so I wish you the best of luck in your real-estate adventures!

Thank you everyone for contributing! From what all of you have mentioned here it seems that best way to get into real-estate given my financial position is to simply look for multi-family homes, duplexes, or even triplexes to start off with as I can potentially live in that residence as well as renting out the other bedrooms to cover the monthly rent/utilities of the property. However, considering that my internship will be located in New York City (and I will most likely be residing there for the next 3-4 years upon completing my Master's) I will not be able to purchase a home as my own personal residence. What I hope to do is that seeing as my sister and her boyfriend are looking for a new place after renting an apartment for the last year now, I saw this as not only great timing, but a way for me finally get into real estate. My father is very close to retirement as well and one of the reasons why I am considering making this move is that one, I will have a family member with stable income renting the property, my father will be able to help manage the property and take care of it while I am away, and the extra income would definitely be very useful in NYC. I know that when it comes to family you need to be careful but, I am very comfortable taking that risk.

Another piece of information that I have learned as well is that FHA loans can be very useful because I can get a loan for a property without paying an absurd down payment. I am very transparent when it comes to my finances and my credit score is very good being a 741 so hopefully securing the loan will not be too difficult. I think by having my father as a guarantor, it will my help my chances as well becuase I am still in college. Another question that came to mind is that I wonder if I could utilize my dad's credit to secure a loan for the property, put me on the deed as a joint tenant in common with right of survivorship (this could be useful in that when he passes the asset could legally flow into my possession without being subject to any taxes), and try to avoid any risk of myself not getting approved for the loan.

One last question, is there away that a ROTH IRA can invest a property that is owned by yourself? I know this is an abstract question but my logic is as follows. Say you have a property that you just purchased and you want to take advantage of the tax deductions that come with owning a rental property, but do not want to pay taxes on the rental income that you earn from said property. If the ROTH IRA owns the property, any capital gains are non-taxable because you invested in the property with post-tax dollars. If any of you are not familiar with what I am trying to do, I ma trying to pull a Mitt Romney here with his $102M IRA that is non-taxable.

Lastly, for all of you who DM'd me, I will be getting back to you shortly. My family is hosting a New Year's Party and the past couple days have been hectic preparing for it.

Hello Everyone!

My name is Dylan Wells and I am currently a senior at the University at Albany majoring in Accounting as well as Business Administration with concentrations in Finance and Management. Upon completing my undergraduate degree I will be pursuing my Masters in Taxation in addition to sitting for the CPA examination. After graduate school, I have accepted a position to work for PricewaterhouseCoopers specifically in the area of International Taxation. Real Estate has always been something that has fascinated me ever since taking up my first job as an assistant project manager at a local roofing company called Titan Roofing. While I may not be good at swinging a hammer, the idea of being able to accumulate multiple properties to subsidize my monthly expenses and practically live for free has always been a dream of mine. I currently have $15,000 saved up right now and I am looking to make a play into the world of real estate. My question for the BiggerPockets community is how can a college student leverage their money and get into real estate without investing in REIT's or Mortgage Notes. Any advice would be greatly appreciated!