All Forum Posts by: Jassen Bowman

If you sign as a "second home" loan, how would you feel about standing in front of a judge to explain what you were trying to do?

If you're comfortable explaining it to a judge, then there's you're answer. If you wouldn't feel comfortable explaining it to a judge, then there's your answer.

Mortgage fraud does get prosecuted. I know of a few real estate investors currently serving prison sentences for intentionally misstating the purpose of a mortgage loan.

My advice to my younger self would have been to buy a house in Virginia Beach, VA while I was on active duty and rent out rooms to other sailors. After leaving the Navy, convert that house to full rental, and buy another house to live in. Live in it for a year, then convert to a rental. Repeat until wealthy.

I'll be the contrarian: The full $1,000,000 would go straight into a tax-exempt bond fund.

Most financial planners are grossly incapable of incorporating real estate into your financial plan. Their software just can't model it, and most of them, to be grossly blunt, simply ignore real estate as an asset class because they have no way to get paid a commission on it. It's just reality.

Enjoy this webinar replay from my friend James Orr on what your financial is simply incapable of showing you:

https://vimeo.com/377384680?__s=br9ir6iuhfsps9zvoxvz

Rentals? Yay! Rentals!

“There’s an app for that.”

Create a free account on https://RealEstateFinancialPla... and immerse yourself for hours in a world of rental property retirement planning. The blog has numerous tutorials, and you can copy the examples from the blog posts into your own account to play with them.

The software was developed by a friend of mine that also happens to be a Realtor that focuses almost exclusively on working with investors. He created it as a client services tool, but it’s open to anybody.

Buy and hold rental properties are my primary retirement plan. I currently own rental units in Bremerton, WA (about an hour west of Seattle by ferry), the Salt Lake City area, and in northern Colorado (about an hour north of Denver). 

My best friend created a sophisticated modeling software that allows me to do all sorts of crazy things. I can project my cash flow in retirement, approximate my net worth through Monte Carlo simulations, and project when I'll hit certain pre-retirement goals.

On top of all that, the modeling can help me make future investment decisions. For example, should I 1031 exchange in order to increase return on equity? What happens if I sell an appreciated property to pay off another one so that I own it free and clear? What impact would accelerated mortgage paydown have on my retirement plan? Heck, do I even need to buy another property, or am I "good" for my desired lifestyle? When can I FIRE?

On this webinar, I'm going to demo the software, showing you how to use it to model a simple retirement scenario. I have nothing to sell you -- the webinar is free, and you can run your own scenarios with a free account on the software. I just like teaching, and "spreading the gospel" of real estate investing.

The webinar is on Friday at 11am Mountain time. You can register here:

https://register.gotowebinar.com/register/6576069497365842689

On this 1-hour webinar, buy/hold real estate investor Jassen Bowman will demonstrate how to model a personal finance plan that will allow one to retire using just buy and hold rental properties. Jassen will walk through some basic assumptions about properties, future economic conditions, returns, and more, in order to demonstrate the impact of these assumptions on your retirement planning.

There is no cost for this webinar, and it will be 100% content (nothing will be offered for sale).

Register here:  https://register.gotowebinar.com/register/6576069497365842689

First off, I have no horse in this race. I just like the book, because it's freakin' amazing. So, I'm taking advantage of my Pro account to post a shameless plug for a free book.

My friend James Orr is creator of the Real Estate Financial Planner software, and earlier this year he wrote a book outlining 10 different paths to financial independence via real estate. The 10 paths are illustrated with detailed charts, easy to follow math, and did I mention detail? He pretty much left no stone unturned.

The book is like $50 on Amazon, but he's decided to start giving it away for free. The book is really a long, long memo to his son that just graduated college and asked him about how to retire early, so it's also a good read.

Check it out here: https://realestatefinancialplanner.com/book/

James has another BiggerPockets post with an ongoing discussion, if you want to talk to him directly about the book: 

https://www.biggerpockets.com/forums/517/topics/760633-financial-independence-with-real-estate-book-free

</shameless plug>

A variation on house hacking: Buy a house as an owner occupant in a neighborhood you want to live in, live in it for 12 months as required by the mortgage, then buy another house and move, renting out the prior one. A friend of mine calls this the "Nomad" strategy, and it's the method I'm using to build my rental portfolio. The math is amazing on it, and it's very simple in execution compared to most strategies.

Right now, I buy new construction homes to do this in, in nice neighborhoods. And the long-term math still works very well, even with new construction.

Instead of dropping $3600 on coaching, I'd suggest investing the equivalent of the $3600 in terms of the value of your time learning everything you can from freely available resources. So, for example, if your time is worth $50 per hour to your current employer, then go invest 72 hours -- time it -- listening to real estate podcasts, reading real estate books at your library, reading real estate blogs, reading the BP forums, etc.

I've never personally listened to it, but many folks here swear by the BiggerPockets podcast. I've heard good things about it.

I'll also give a plug for two podcasts produced by people I know, that are very well done, and very educational. One is the Nomad Real Estate Investing Podcast, the other is the Denver Real Estate Investing Podcast. In particular, I'd highly suggest the June 20th episode of the Nomad podcast, which explains the Nomad strategy for acquiring rental properties. It's the strategy I follow, and mathematically it's an amazing model.