All Forum Posts by: Scott Jensen

@Jesse Thompson  I'm in Blaine too!  Reach out if you'd like to have a zoom call or go out for coffee. I'd be happy to let you know what my experience has been and help point you in the right direction.

@Jennie Berger It also depends on the amount they are managing. 1.5% of a $50,000 account is $750 per year. I wouldn't work with anyone for $750 per year. 1.5% of $5,000,000 is $75,000 which could be high depending on what the advisor is doing.  My pricing is 1% up to $1M, and 0.6% of anything above $1m with a $2,400 minimum annual fee. That works out pretty well most of the time.  I do customize the pricing if the situation is unusual.

instead of looking at it in terms of percentages, I would look at it in terms of dollars and value provided. Does this cost $5,000?  Does the value the advisor provide exceed the value?

A few things good advisors do to justify the costs:

• Low cost well diversified investing
• Ongoing tax planning and reviewing tax returns annually
• Reviewing your financing options and giving recommendations
• Reviewing insurance policies periodically to make sure you have adequate coverage at a reasonable cost
• Make sure you have an estate plan and it stays current
• Help you analyze you properties and determine what your rates of return are
• Review employee benefits and stock options to make sure you're taking advantage of whatever is offered
• Analyzing pension benefit options and Social Security options
• Retirement planning, college planning, charitable planning, etc.

If an advisor is only managing investments, 1-1.5% is high. If they are doing some of the other things I mentioned, a 1% or 1.5% fee can be reasonable.

@Tim Swierczek is the best Mortgage lender in MN, @Daniel Anshus.  He is super knowledgeable about all things lending as well as real estate investing!  Him and his team have done great work for me.

@Elena Svetlov @Samir Inge

Cynthia Meyer is an advisor in New Jersey that I would highly recommend. We run a real estate study group for fee-only financial She's been a real estate investor for a long time and works with primarily with real estate investors, like I do.  advisors. The name of her firm is Real Life Planning.

This really isn't a big deal if you fix it correctly. It happens all the time.  I would recommend calling the investment company on the phone and tell them you need to do a Return of Excess because your income was over the AGI limit.  You're taxed on the earnings but there isn't a penalty. 

Next year, if you're over the limit, you will want to look into doing a backdoor Roth IRA contribution or if you are self-employed you may be able to do Roth contributions in a Solo 401(k). Also, you can look at doing Mega-Backdoor Roth contributions if you're self employed or your employer 401(k) is set up for it.

The Mad Fientist has some good posts to explain it for you. Be careful though; it is pretty easy to screw up. If you're uncomfortable doing it yourself you can hire a professional to do it for you.

Disclaimer: I am a Financial Advisor but I am not your Financial Advisor. I don't know your specific situation and it is not my fault if you screw any of this up.

@Tina Thornton Depending on the size of the property you are exchanging, you could 1031 into multiple properties to further diversify. As long as the timing works out you could go half into a syndication and half into a DST or some other combination. Be careful of the sales charges when you get a DST. Some companies charge around 6% and some are as low as 2%...for the exact same DST...

I second @Tim Swierczek!

If putting 20% down makes you short on cash, then you should consider putting 3% down and have cash.  But sometimes with 3% down, when you move out and turn it into a LTR your cashflow could be negative, because of the higher loan payment.  So those are a few considerations you should take into account. 

I would recommend contacting Adam Tafel.  He has several AirBnBs and manages them for others as well in the Twin Cities area.

Here's a couple recommendations.  

Brad Schaeppi at MinnesotaLandlordLaw.com His Bigger Pockets Profile (it wasn't letting me tag him):  https://www.biggerpockets.com/... Brad is focused on MN Commercial Real Estate, but does good work in other real estate areas as well.  

Greg Lang at LangLawOffice.com.  He's been around for a zillion years and is a very well-rounded attorney but specializes in real estate.

If you go with one of them, let them know I sent you!