All Forum Posts by: Ethan Mace

I finally got my assignment to NJ today.  Wondering if anyone here is in that area?

Hi, @Account Closed,

If you don't mind me asking, how much did it cost to improve the raw land?  How did you finance it? 

Hi, @Colton S.,

I actually just recently finished the book and it, along with Robert Kiyosaki's "Cashflow" game have taught me probably the best lesson I have learned so far:  maximize and control assets, minimize liabilities.  "Cashflow" teaches this very well and you can get the app on iPad (which is what I did). 

He also says to "pay yourself first".  I didn't fully grasp this concept until I played the game.  When I first started playing, I tried to pay off my low interest debt as quickly as possible.  This sounded like a solid strategy at first, but the bots would always beat me.  Then, it eventually clicked.  I noticed that my minimum monthly payments on $3,000 were around $80.  So, instead of paying $3,000 to increase my cash flow by $80 a month, I saved that $3,000 to invest in a property that would increase my cash flow by $200 a month. 

As soon as I understood those two principles, I began to learn how to differentiate between an asset, and liabilities that seemed like assets.  Which is another lesson he teaches in his book and game.

I'd advise that you read the book, and play the game.  They are amazing tools.  I didn't read it until I heard it mentioned multiple times in the BP podcasts.

Thanks for your reply, @George Maka,

I will certainly be going to every bank I can find, and seeing if I can be pre-approved up to X amount.  I was considering seller financing as my primary backup plan.

Hello, Friends,

I made poor decisions with credit cards between age 19-24.  Now, I'm 25 and I'm working hard to fix this problem.

However, I fear my bad credit will prevent me from acquiring assets and increasing my cash flow.  I'd like to begin my journey by purchasing a tri/fourplex.  Is seller financing the best option I would have if I don't qualify for any loans? 

I am in somewhat of a unique situation.  I'm in the military and I'm PCSing to the states next month.  However, due to complications, I still have no idea where I'm going.  This makes it difficult to know which banks, and opportunities are in the area.

I'd greatly appreciate any advice.  Thanks for your input!

@Matthew Elmer

@Kim Giannola

Thanks for your replies!  I'll have to keep an eye out for properties below or equal to their actual value, and make sure I have a trustworthy contractor to handle the repairs.  I have a few more questions if you might share your insight.

I was researching last night, and stumbled upon 1031 exchanges.  I understand how they work, but I do have a few questions about the finer details.

1.  If I purchase a property for $100k, and after a year, it's worth $150k.  I do the 1031 exchange and now I have $50k as a down payment for a bigger property/properties.  What happens to the other $100k?  Do I use it to pay off that mortgage?  Is it taxed?

2. Can I do this with an FHA/203K loan?

3.  Is there a strategy to ensuring capital gains (or at least managing risk), rather than losses?

4.  Do you have any other advice for this type of strategy, or suggestions for a better one?

Thanks again for your time, I really appreciate it!

-E. Mace

Hello, everyone, 

I'm new here so I'll briefly introduce myself.   I just turned 25 last month, and my goal is to make a highly successful career out of real estate.  I am currently in the military and I'll be moving to the states next month.  (due to complications, I still have no idea where I'm going).  

I think the title says it all.  I'd like to gain information from people who have "been there", and this seems like the perfect place to get it.  What do you wish you knew before your first purchase?  What would you have done differently?  What questions do you think I should be asking, but may not be experienced enough to know I should ask them?

That being said, I am considering making my first purchase a fourplex in whatever state I end up in. I was reading up on FHA and 203K loans, and I'd love to purchase a fourplex, rehab it, and live in one of the units while I rent the others out. Does this seem like a good first purchase? What would you do differently if you had the chance to do it all over again?

Right now, I'm reading "Loopholes of Real Estate" from the "Rich Dad Poor Dad" series, and there seems to be a huge opportunity to get major tax breaks if this is all done correcly.  If you have any insight on this, I'd love to hear about it.

Again, if there are any questions I should be asking, please let me know.

Thanks for your time!,

-E. Mace