All Forum Posts by: Ben Kevan

Tom K,

Thanks for the outlook, and some feedback on how you've managed your returns with REI. I also decided to stop 10 of the 11% I had been putting into 401k. But am still currently putting the 5% into ESPP. Stopping the 10% really made me see the tax savings (boy it's 200+ / month). Not to mention, it's going to be interesting to see how close it puts me into another tax bracket. If I am within 5k of the bracket below me, then I'll be dumping into an IRA.

I, like yourself, and using this as another diversification towards long term financial stability, and have a buy & hold mindset, with a near term goal to do some wholesaling, to fully understand the markets and to interact with some people to get a better deal on a buy & hold propert(y|ies).

From what I've calculated as my needs for retirement (without collecting social security, since I still feel that's a wildcard when I'm of age to collect), I'm 6 years ahead of my target, which is why I've decided to stop the 401k contribution to raise capital to purchase property (Although keeping the 401k and moving into a self directed ira and using that for investment has also crossed my mind). I also know that I need to dump a bit more into my sons 529 (right now I'm at the pace of 1000 / yr).

I'm pretty young (29.. as of a few days ago) and feel that the amount in my 401k (62k in 401k, w/ company doing 5% w/o requirement to contribute) was enough to allow me to now diversify.

Once I get up front capital to purchase, then I fully expect to start re-contributing into 401k (my goal is to go from 1% to 3%, then 3% to 6% then 6% to 9% then back to 11%).

I should note that the above capital raised would be outside of a buffer for emergency expenses and is inline with me not getting help from my GF, who is currently unemployed and whose unemployment may soon end.

But yes.. I really just want to get out of the rat race, and looking forward I want to secure my future while keeping my full time job (since unlike most, my full time job is something I'm in love with, and I love doing).

I've put together a site that I'm planning on using for wholesaling while getting together some capital to pursue my long term investment strategy of Buy & Hold landlording.

The site is: www.solanowholesale.com... It's currently done, but since I've finished I found a few things that I need to fix or a few things that I wish I incorporated (ie I plan on adding search options for rental properties .. if I plan on using this site for later rentals that I'm looking to get ). On the site is an option for user submit properties (which I am pondering using to target FSBO markets, or other people who are wholesaling, so they have a venue to make an easy well developed professional page by just inputting a few pre-defined fields and adding their own pictures, which is a free service for non featured properties).

The original intent for the site was to have a professional front end for gathering a buyers list, but then my imagination went out of control (again) and I've expanded it to what you see now.

Critiques please :o)

Awesome Jay,

Glad it's on its way to completion..

I'm still learning me some ropes.. checking out multiplexes and SFR in multiple locations.. I hope to put down 25%.. since I did FHA with my primary residence..

Hope to follow your ropes shortly

Although I don't actually own a rental, I've been looking at the markets to get a rental, and in my distressed and depressed county (Solano County California, one of the worst in the Country) many people have opted to do this same thing, thus flooding the market with rentals.

In a small city I checked (just on craigslist) and there were 30 listings in 2 days for rentals (about 5 rent to own)..

seems like INSANE amounts. Oh well.. I'm still going to do it .. just need some better down payment capital..

Thank you to everyone that has responded and given response...

I've decided that I'll cut 6% of my current contribution into 401k, and stop the 5% contribution into my Employee Stock Purchase Plan, which should give me about 900 / Month (but I'm not sure exactly due to tax shift in the lowering of my 401k).

I must say, it's good that I haven't increased my spending lifestyle in years thus allowing me to have an opportunity to invest.

I hope to get my first deal in the pipeline within a year.

I'm meeting with a seasoned Flipper / Realtor, a veteran Realtor and a Regional VP of Underwriter Operations for BoA within the next two week, to really start getting my head into the game.

I have some capital so I'll looking at first getting some wholesales under my belt, but really have my eye on buy and hold to become a landlord.

More responses would still be grateful :)

Charles,

Thank you.. Quite an impressive profile you have, and I hope to someday replicate 10% of the profitability and success you've had.

There seems to be quite the abundance of knowledge on this site, which can be a rarity while browsing on the internet now-a-days.

Jayme,

I've sent you a PM for some of your contact information. We'll def have to keep in touch as I'm a hungry young individual with a true entrepreneurial mindset that has a desire to succeed.

Sorry for my ignorance in this level of IRA's, but can you actually roll over a current 401k with a current employer to a n SD IRA? Or did you roll over a previous fund?

If I rolled into an SD IRA I'd have some nice $$ to work with for putting down on a property.

This question is targeted to those landloards and investors that handle properties that are remote from them (ie several states away).

How do you guys manage them? Do you ever see the house prior to your purchase?

Due to my limited up front capital, and the overall markets in California (I live in the Bay Area) it's hard to find a house in my micro market that will conform to the 2/50 rule. Because of this, I've been pondering the idea of purchasing out of state, however, since I've just recently began my research in REI, I wanted to see how you seasoned investors handle this hurdle?

Hi Harry,

Thanks for the great run down. It seems as though you also have recently went down the path that I did in deciding on which was the best route to fulfill your means of financial independence.

I have one beneficial thing with my place of employment. The 401k is a flat 5% and not a match, so I get it if I do, or do not contribute to my 401k plan (currently doing 11% into 401k and 5% into Employee Stock Purchase Plan (post tax), for a total of about 1200 / month).

My philosophical mindset is a true entrepreneurship that always wants to succeed and take the next steps in everything I do. The mindset on REI was fueled after purchasing (a year ago) my first primary residence and now, I want the next step and that's to own multiple with a positive net cash flow.

Thank you for your outlook and your mindset as it seems they are quite inline with my goals (although you have a few years on me.. I'm still 28, but aging fast).

What are the common payouts for Short Sale referrals? Do you have a listing of primary holding banks that are easier to work with, or a list of "stay the heck away"?

I live in Solano County in California (Vallejo / Fairfield Area) and that's known to be one of the worst in the Country, so lots of possibilities of distressed properties that have yet hit the Short Sale arena. So, that's defiantly a possibility of interest for me and a good way to build a "buyers list" for someone 3 years down the road when they are more secure to purchase again (can short sale purchase ASAP? or must they wait similar to the Foreclosures peeps).

Would you mind if I copied down your contact information as a possible lead for people that require short sale assistance?