All Forum Posts by: Frank S.

I'm glad I followed this post.  Geat info.

@Jason D., that's great!  You got a great handle on it.  Congrats!  It's great your wife is taking care of the kids.

You may have this already, but if not, talk to your CPA about a spousal IRA. Roth cash must stay there for 5 years, but you can tap into it unlike a tax-deffered one.

Disclosure: The following is  written on the fly, spelling errors are intentional, semantics are for everyone's enjoyment.

Honestly, what truly bothers me is to see the horrible advice given by Bob. I care about people's well-being, I truly do.  

There are many, many ways to tackle that vogus claim, here is one. 

Note #1.  I am strongly biased as I can stand the guy.

Cost basis: $275,00 at 27.5 years, land $125,000, each property cost $400,000

It would take about $4,000,000 in encumbred property to make that 10K loss (P&L) happen.  At 30% down payment, that's $1.2M. For someone making $100K that's some serious savings.   See note #1.

What do lenders look for when assesing the performance of encumbered properties in the P&L? The "P".

I just got a refi on a cash purchase, the lender looked under all rocks possible to release 70% ARV. It was tourtorous. This was a $155K ARV property producing $2.6K. It was purchased at $120K and $8K repairs. It would be highly unlikely, if not impossible, to get 4M in loans if all loose money. At least with that lender. See note #1.

Then, why is this dude making those claims?  Is it done to generate hype before passing the collection basket. I don't know, you be the judge.

Class #1 – Free Advice

Class #2 – Paid Advice, $500

Class #3 – Paid Advice $30K to $45K

What about the bankruptcies?  Perhaps he believed his own financial advice fantasies.  See note #1.

Best of luck to all, 

 What a nice rabbit hole I got myself into. It's kind of fun,  tho. 

In my opinion,  the post was about Bob's book example and how that applies to reality. In summary,  the example in the book is useless, for it's vague and unreasonable, much like all of his fictional books. That's my personal and honest opinion.

I'm curious -  and not in a confrontational way. Please, illustrate the incorrect statements as this may help others- and myself.  Perhaps, it's matter of semantics, which are easily clarified. Keep in mind the intent and context of the example given in the book. 

Take care, 

Frank

Likewise, BRRR is great to achieve that.

Maybe that's the difference,  I do hold a strong position against misleading, detrimental,  and incorrect  advice, like Bob's fantasies. 

Tax shelter is one of the four ways to make money in RE, not the only one.  That's beyond the purpose of this response. 

Kiyosaki is a buffoon, I wouldn't trust anything on his books. In fact,  research the flaws within his work of fiction.

To start,  nobody pays taxes based on the Marginal Tax Rate on the first dollar,  we pay the Effective Tax Rate.  Many tout that same story because most don't know what's the difference. 

Get this instead, Every Landlord's Tax Deduction Guide by NOLO. Read it a few times,  buy the new book each year,  and learn from a good CPA.

Then,  recall Recapture Tax bites at 25% without 1031s.

Read Brandon's (above) articles and seminars.  He has some of the best information I have seen.

That statement is illogical, 

Ask yourself,  what would it take to have 10 properties loosing $100,000 per year? Don't you want to make some money? 

Then, for how long is that sustainable? 

Who would loan someone 10 mortgages if they all lose $10,000 per year with only a $100,000 salary? 

If they make money,  and 10k per unit is only depreciation.  Then,  the tax he describes fades away if the person is not a Real Estate Professional.

And so it goes.. 

You can discredit those malicious arguments with knowledge. 

I wish you the best,  I simply can't stand that clown. 

Frank

Post rent/cost numbers on the condo, people will comment.

Use CPI to see if you may be better off selling it.

LLCs are overrated for people with only a few units. Umbrella and Landlord Insurance may do. I ignore how many units you have.

“High Growth” is profit chasing. That's '07 again. Don't be the last one holding the money bag. Appreciation is nice, but too risky. 

It's hard. 

I deal with many professional contractors through my job, large firms. They are efficient,  reliable,  insured,  licensed,  and expensive. I can't use them for my rental business.  It's shocking to see the difference between both worlds. 

Good luck with your research.  It's a revolving door. 

Do you mean, give me your guys contact info? Hmmm, let me get back to you on that one...