All Forum Posts by: James Murphey

Graham Stephan has a great YouTube channel about RE investing, being an agent, and personal finance.  He started  when he graduated high school.  I am sure he has some great advice that you could find valuable.  He is his channel

I just finished the book last night. I have to say it is probably one of my favorites. David gives great insight and detail into the BRRRRing process. The book not only provides ways to systematically BRRRR, but it also provides the mindset/philosophy that is needed in pursuing this endeavor. The mindset portion of the book, I feel is the most important. It is so easy to look at this process, and say it is too hard, or there will be too many problems. These are issues with anything worth doing, and David makes solid points on the mindset needed to tackle this process. I am drinking the juice at this point, and plan on making this my method of investing. Great book!

What are they typical terms from small commercial properties right now?  5-20 units?  I would love to househack a small apartment complex, but when I analyse properties it is hard to know what financing would look like.  Thanks

  When you say the long term growth of real estate has been only 5.4% is that taking into consideration cashflow, tax advantages, and appreciation?   You make a good argument, and index funds are really hands off.  It seems like a apples to oranges comparison in a lot of ways to me.  It is hard to compare, but I guess that is what we are doing in this form.  I feel like the main advantages RE has over Stocks is obviously control, leverage, and you can keep the asset while it cashflows.  Many stocks pay dividends, but that return is usually not even close to the return you get on a decent property.  The great part of owning stocks is you do not have manage them. It is a more set it and forget it scenario.  Thanks for your insight.

@Dimitri Paspalaris I am in a similar situation.  I plan on pulling money from a 457b in the next few months to a year.  I will be taxed on it like regular income when I pull the money.  I have already shifted my money and contributions to money market, and bonds, since I will be investing in RE in the near future.  When the time comes to take the money I plan on looking at my tax bracket and maybe trying to take withdraws across two years to lower the taxes if possible.  Probably might save 2-3% by doing this, and I will be moving to Tennessee where there is no state income tax.  That will save me another 7%.  I think it is a great move for so many reasons.  The level of control it provides, the diversity, the flexibility.  Many have already commented on control, and diversity, but flexibility is very valuable in my opinion too.  Owning a hard asset is more important now then ever.  So many people are digital millionaires.  I am not a fear monger but what happens if there is a cyber attack, or EMP that prevents us from accessing that money.  I would like to still have a few hard assets with paper titles.  Anyways let us know what you decide to do.   

@Joe Villeneuve@Nick Rutkowski I think making it fun is super important.  I also think giving children access to the money they make at an early age is important too.  I still remember the time I saved $100 and spent it all in an over priced amusement park store.  It still burns me to this day to think about it.  I want to give my son these opportunities at an early age so he can learn these expensive lessons when he is still young, and they are less expensive.  

I plan on using my 457b money when I start investing.  It is similar to 401k, but you do not have wait until you are 59 to pull the money. You can pull as soon as you separate from your employer who the 457b is held under.  I know some people take loans out on 401k's I think in general this is a bad idea, because you are paying for pretaxed dollars with after taxed dollars, but I think there is some way when investing in real estate this can make sense.  If anyone can explain how to make this work let me know.  I might look into this option too.    

@Account Closedas a fellow educator I agree we do not teach personal finance in schools.  There are only a handful of states that require a personal finance class in high school.  I recently looked a personal finance teachers curriculum in Tennessee it made  me want to jump out of the window.  It was so boring.  I am not a conspiracy theorist, but I do think the government does not want real personal finance to be taught in schools because they essentially can put a 18 year old into massive debt sometimes student loan debt that they might be unable to ever payoff given their career/school selections.  With that said, I think it is  important to teach our own children and my students when possible about personal finance.  I really like Mike's choice he gives his son.  So much of money is opportunity cost.  The sooner someone can understand this concept the better their life will be.  I have a 2 year old, and when someone gives us money for him, I put it in his Ally Bank Account which returns 2.2 percent a year, and once a year I plan on matching his money another 8 percent.  I want him to understand a early age that leaving his money in this account will make him money.  I also think it is important to not say no when he ask for the newest Xbox or bike, but rather say ,"how can you afford this?"  Pick up cans? Mow lawns? Help me at work? Help grandpa at his farm? I want him to start fishing from an early age.  Mr. Money Mustache has a great article on this subject.  Hope this helps.  Let us know what you come up with.  I love this subject.  https://www.mrmoneymustache.com/2015/05/20/what-im-teaching-my-son-about-money/

The ROI minded investor would look at what is going to bring the greatest return, and not really contemplate stress, or difficulty that comes with some investments, and debt. If you are thinking more about creating a more simplistic life in Mississippi. I would consider paying off the debt, and only considering investing where you live at. I do not know how well you handle stress, but it is thought that moving, and starting a new job as 2 of the top 3 most stressful things a person can do add in a long distance rental, and some debt that could be a large amount of stress. I would personally consider selling paying off the debt, and finding investments that would be easiest in my back yard. Hope this helps.

Take the red pill!