All Forum Posts by: Jonathan Clark

@Julie Marquez Thank you for the suggestion on the tax strategy book. I had not yet gotten to tax consequences of REI in my journey but @Troy Fisher got me curious when mentioning tax liabilities.  I have added "Tax" as a keyword on the BP forum, doing some internet searches, and thinking a lot about it.         I am a "high-income individual" and would be remiss in not considering taxes as a major part of my strategy.     I have always been a do-it-yourselfer but I'm now thinking that once I finish some more research I will have at least an initial meeting with a CPA. 

Anyone here a CPA with strong knowledge of REI? Anyone here have a favorite they use and would like to recommend? Bonus points for someone local to the Seattle area, and I'll be sure to tell them you sent me.

@Jessica S. 11 years in the biz sounds like excellent experience.   I used to build and manage data centers, including some in high rise buildings, and I know a bit about the construction side.  From a real estate perspective, I have no experience -- closest I got was site selection and negotiating leases.    There are a bunch of "meet-up" type groups around here and I"ll be trying  a couple out in the coming weeks.  I'll be at the Pac NW Real Estate Meetup on the 9/12.   If you're planning to attend any please let me know and I hope to see you there!

I am also interested in tax strategies and considerations for VR property ownership.   @Steven Hamilton II or anyone local to the Seattle area, I would also welcome a referral if you've got a good resource in mind.   

I am working full time and have a reasonably high income.  I'm looking to invest in properties to build long-term wealth and eventually provide cash flow for retirement in 10 years.      It was recently pointed out to me that VR's could be unfavorable from a tax perspective because they can drive higher cash flow.         Thanks!

You asked "Would you buy a partial ownership given the pitfalls". I am completely new to REI, but personally I would not.

The words 'hostile action' and 'family member' in the same paragraph do not sound like  a favorable combination to me.   Add to that being only 1/3 owner with co-owners for tenants who are unhappy with you and of questionable rationality...    It sounds like it could turn into a nightmare.

The bad karma comment you made also resonates with me -- it wouldn't sit well with me either.   Maybe there is also consideration of the impact to your reputation? Seems like that could be worth more than $10K in this business.

I would probably add $10K to a different deal and make money there instead.  

Hope it works out for you! 

Thank you all for the welcome and good information!     It is somewhat cool to see all the folks who replied that are in my local area.  One might even be my neighbor!

@Teresa Roberts, You can't go wrong with a list!   

I showed my list to a family member last night and unexpectedly I now have a commitment for additional investment funding come March.  

@Troy Fisher,  I've just signed up for the PacificNWRealEstate meetup on Sept 13 in Seattle.     Thank you for the invite.       I have a couple of follow-up questions regarding your comments about vacation rentals:

1. You mentioned that they tend to be management intensive.   How about using a property management company?  I saw in Chelan that there are several of these companies.   The vacation rental I stayed at was marketed and managed by one of these companies. 
2. With regard to the cashflow play, does that apply to rental properties in general?  To my novice eye, a vacation rental would be the same as any rental property but with more tenants staying less time.   
3. I started trolling through the BP podcasts for more on rental properties.  Perhaps there is a forum you or anyone could direct me to on BP where I could ask more about this type of investment, including vacation rentals?

@Rob Terpilowski, I've accepted your request and will look forward to setting up a meeting with you to chat.    Coffee on a weekend morning at the Snoqualmie Coffee Company sounds great. 

@Teresa Roberts

Hi BiggerPockets community.   I came across this site searching the internet for information on Real Estate Investing.   This really fits the way I learn and the way I like to work with others.

I’ve read the “UBG” and spent a bunch of time looking at all the references. Wise folks say a good next step is to introduce myself here, so here I am, and here is a bit about me and my grand plans. :) I’ve also got a few questions at the end which I’ll be grateful for your input on.

About Me

I'm Jonathan. I live in Snoqualmie, WA (Seattle area). I'm an experienced stock and options investor and other than having bought and sold my own primary residences, I have no experience in REI. I have a full time job in IT leadership which I'm not planning to leave anytime soon. I'm not looking to start a new career in REI. I am actively building a portfolio of wealth to accelerate my retirement with enough left over to leave my children something to start off with, and I believe real estate has a place there.

What I'm planning to do with Real Estate Investing

1. Prepare. Between now and March 1 of 2017, I will:

• Learn all I can about the business, the state of the market, and where the opportunities are.
• Determine who I need on my team and network to start those relationships.
• Set up the structure (e.g. do I need to set up an LLC? get a real estate license? open separate bank accounts etc?)
• Gather initial funding. On March 1 2017, I will deposit $100K cash into my venture to start with.
• Prepare for the first deal. I’ll do all the background work, research, etc to be ready to kick off an investment within the month of March 2017.

2. Accumulate. Between March 2017 and March 2027 I will:

•  Continue to grow my portfolio.
•  Continue to add cash to my portfolio to accelerate my accumulation.
•  Re-invest 100% of all gains back into the portfolio.
•  Regularly set aside time for learning and getting fresh ideas from the community.
•  Make my relationships as strong as possible by delivering on what I promise and providing as much value as I can to my team who do the same.
•  When I feel I’ve got some experience and wisdom under my belt I’ll contribute back to the community.  
•  Because I’m working full time, my primary contribution to my team will be money from my earnings, leadership and deal negotiation which are skills I have and use every day at my job.

3. Maintain. After 10 years of accumulation:

• Quit my job and begin drawing money from my stock and real estate portfolios to fund my living expenses.
• Take a more active role in management of the portfolio and seek to continue its growth.

Some Questions

• Are there any real estate investor groups who meet up in my local area? Does BP have a resource where I can look these up? I’d like to participate.
• Are there any individuals in my area and/or with the same plans I have who are also learning and would like to learn together? If so, I'd welcome a contact from you. 
• This week I am on vacation in Chelan, WA which is full of vacation rentals and a fantastic place to visit (we come every year). Maybe a vacation rental in Chelan would be a good place to start? I’m inspired. What do you all think of a beginner starting with vacation rentals? Is there anyone on BP from Chelan who specializes in this? If so, I’d love to meet you.

A whimsical thought to finish

Is it just me or does the bigger pockets logo look like a police officer?  

Looking forward to meeting you!