All Forum Posts by: Jeremiah Dunakin

Quote from @Dominick Johnson:

Quote from @Jeremiah Dunakin:

Not sure if this is what you’re asking but here goes. I have used my retirement 401k to get a loan to get funds for my first rental property. I paid for 20% down payment and rehab cost with it. I am paying loan back over 5 years. At the end of that 5 years I will have at least 20% of principle paid off. I was fortunate as I took my loan and then the market crashed so I would have lost the money anyway. Now I pay back weekly out of my w2 check. I plan on having it paid off 3 years early. I also plan on taking out a second loan as my plan allows. I know most will say that taking funds out will hamper growth in the market. I agree. That said next spring when I pay off my loan I will put an extra 400$ in pocket from paying off loan early. Couple that with the cash flow from rental and I couldn’t be happier

Hi Jeremiah, I appreciate your response. This isn't quite what I was asking about, as you took a loan from your employer sponsored 401k. The topic is about solo 401k, which is a retirement plan that business owners can do for alternative investing that doesn't have to be stocks. Best of luck with your REI investing!

 Ahh ok well I’m curious now too. 

Not sure if this is what you’re asking but here goes. I have used my retirement 401k to get a loan to get funds for my first rental property. I paid for 20% down payment and rehab cost with it. I am paying loan back over 5 years. At the end of that 5 years I will have at least 20% of principle paid off. I was fortunate as I took my loan and then the market crashed so I would have lost the money anyway. Now I pay back weekly out of my w2 check. I plan on having it paid off 3 years early. I also plan on taking out a second loan as my plan allows. I know most will say that taking funds out will hamper growth in the market. I agree. That said next spring when I pay off my loan I will put an extra 400$ in pocket from paying off loan early. Couple that with the cash flow from rental and I couldn’t be happier

Quote from @Chris Seveney:

@Trevor Richardson

Amazon to northern Virginia was to bring up to 65,000 people to the area. 3.000 jobs is not a lot

There are a lot of other things that can have a greater impact

3000 jobs is a lot. It may not be 65000, however it will have an im pact on the local housing market.it looks like Reno has a steady growth of 1-2% a year. 

Dave is good for helping people develop a plan. Dave can help focus and guide a person in getting thier life straight. Dave has helped 100s of thousands of people. I don’t necessarily follow his investing but listening to him help me get motivated to get out of personal bad debt. I think that is amazing and the most beneficial thing a person can do to build wealth. It relives a lot of stress. Being debt free means not worrying about layoffs, a boss you don’t like, or in my case a union contract going south. 
That said I have took on debt to invest in real estate. However I took on debt that I could pay for the rest of my life even with no tenants. We all view things different but his advice is sound and if followed a person would be hard pressed to fail. A person can also take on leveraged debt and be successful as well. There is more risk but also much more reward. 

Quote from @Tabitha Bean:

@Marcus R. and @Jeremiah Dunakin

Thanks for your encouraging comments. I need those right now! My partner and I have both scraped up all our options, and the cash/borrowing power we have doesn't get us near the number we need. Initially, we thought we were looking at repairs to the unit. But upon the tenants vacating with 6 hours' notice, we quickly learned repairs had become a gut job instead.

I was hoping someone would mention an experience they had with Fund&Grow here because a foray into business credit seems to be our best option.

Again that you both for your encouragement and great suggestions.

You are welcome. Sometimes we don’t need kicked when we down. I love this forum, but to many times I see all the buzzwords get thrown out. I see people will criticize others when they already know they in trouble. I think they like to point out the obvious so as to throw shade at someone else. I will be perfectly honest on my first property I got in over my head a bit. Thankfully I work a job that I can work 16 hours a day seven days a week to out spend my mistakes. I have never heard of Fund and Grow. I will look into it. Let us know what you come up with. It sounds like there are a couple options to at least give a glimmer of hope. 

Sounds like you in a tough spot. You shouldve would’ve could’ve a million things. But you didn’t and that’s ok. Don’t beat yourself over it. Have you considered taking a loan on your retirement account assuming you have one? That has been a source to help me get started in investing. I took a loan on my 401k. Yes you might lose some gains, however it’s a source of non credit income. 

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @Colleen F.:

@Account Closed @Jay Hinrichs   If you want to run the numbers from the census data where all these sites are getting the it: 
 

Should you subsidize downpayments because people can't afford to live in the town they grew up in?  Is it really house price vs wages or house price vs where people want to live?

 I have tons of idea how to solve the housing crisis, ready ? :-)

1. Create people to people lending with the spread thinner than bank. So lets say Fed Fund Rate is 5%, bank spread is 2.8% , now folks are able to lend to folks with 6% rate. This is similar to like HML but rather than to company make it between people and the spread is as thin as 1%. Also this is not similar when bank is buying other bank's MBS portfolio.

2. Create 5,000 unit apartment 600 sqft size, in every big city with ownership of one company. Lets say it's owned by Amazon. Then Amazon is reselling those apartment to FTHB for a flat base price of 300k for example, with the rate below Fed Rate, lets say 2.99%. They can live in the apartment as long as they're worker of Amazon.

3. Allow the development of large apartment complex just like in Hongkong, very tall building small space, deregulate the super-complicated requirement and permit process.

I know I know many folks would not like the idea LOL

In #1 your creating a security, or someone is creating that security. There is a cost associated with creating and managing said security. Who's eating that expense? 

In #2, we have a lot of data on that, it's call "The Projects". With density of low income, comes disproportionate increase in crime. I know, we all want to wear the rose colored glasses and say people will lock arms and sing along but they don't.    And in this day and age, people will cry out prejudice, that they are being "stuck" into this housing lessor than the nice neighborhoods, which yeah, it is, but for a reason, a financial consideration, but nobody ever looks at causality anymore or wants to own that accountability, they just want everything everyone else has there looking to reguardless of having earned it or not. 

Reality is, were on a bullet-train too socialism verging into communism, but, can't say that, I mean it's the facts but just can't use those words, they will have new words, but it will be the same. 

For #2 , it's basically moving the job of the gov to corporation, so in the futur it's corporation that suppose to do the socialism, not the goverment.

I don't see crime rising if the whole 5,000 unit apartment is all owned by Amazon employee. Amazon could have their own rules in managing those apartment. 

Amazon also, in relation to number #2, can work as lender in position #1 as well. So it's the same concept, the socialism act that supposed to be done by gov, we move it to Amazon. Why ? all business is being taken over by Amazon anyway, they make too much money, gov. doesn't make much money anymore even after taxes. 

To answer your question for #1, Amazon could act as lender/servicer and they would perform better than banks as they have the tools ready.

So lets Amazon/Apple/Microsoft/Google/Chevron fix  the damage that they created at first place LOL 

We need to disturb this system from its core, James.

Having corporations take on the role of housing is a recipe for disaster. Where I work there is a huge neighborhood named after the founder of my company. He tried this little experiment as well. He built houses for employees. He kept them close to work. I will tell you that you don’t come to this neighborhood unless you work here. It is dangerous. The company he built has had to have city police snipers on it more than once for crime in the houses he had built. We have fenced in parking lot. We watch from windows as the neighborhood destroys cars and breaks into vehicles steal vehicles start fires. It is a huge problem. There are times when you come into work in middle of night that security escorts you in. My company is good at making a product doesn’t mean they are good at running a housing authority. 

Whenever someone steps out and tries something people always think they can have a vocal opinion. If you change diet,exercise,real estate, sport,money, lifestyle there will be haters that know absolutely everything. When I started trying to invest in real estate I had a bunch of people telling me how to do it, where to do it, who to rent to, prices to pay. None of them have bought anything yet. I’ve been living by the words of 50 cent “if they hate let me hate and watch the money pile up” as someone else pointed out people will make fun of you then after a while they ask you how u do it. You got this don’t let the naysayers live rent free in your head

it’s not being the old guy on the porch. It’s stating a fact. Kids today (I’m gen x) don’t want to work.I see them come in my shop all the time they do not and refuse to work overtime. I hear parents my age say kids today don’t want this or that. They want to travel. Kids today have it way easier.it’s not a next generation is lazy mentality.It’s stating the truth. Kids stay at home and be on mommy and daddy’s insurance till they 26. I had insurance for myself at 18. My generation not the next do not want to work. 

No we haven’t always been lazy and freeloaders. You used to starve if you did not work even in this great country. Now if you don’t work you can be overweight with 150$ Jordan’s on. Young adults living at home as raised by 15% in last 12-15 years. That is a substantial amount. I know a job that pays 6 figures with no education and they can’t keep the young adults. This is a problem. 
I agree the days of one working adult is about done. I raised a family of four on one income for 10 years it can be down but I worked OT to do it.

The challenge is not the same it’s way easier. As each generation has become more enlightened. Policy has changed politically in this country making it harder to get by. We might have agree to disagree on this topic. Best wishes 

Quote from @Carlos Ptriawan:

Quote from @Jeremiah Dunakin:

Quote from @Carlos Ptriawan:

Quote from @Jeremiah Dunakin:

Quote from @Chris Watkins:

Hi Kazumi, welcome to the forums!

The effects of a particular president (or even governing party) would likely be small on the major economic forces that drive real estate. Presidents actually have little effect over the larger economy (positively or negatively) that the preside over.n’t win a title. Or Elon musk doesn’t really factor into Tesla 

 It is because it's being exaggerated so much as it's discussed widely in social media , while the data showing it's almost meaningless. Yes political has its influence but not so much when we carefully access the data and information. 

The biggest immigration after all is still going to Sacramento, these are mostly retirees age level or Baby boomers generation moving out from high-productive-economy to more retirement-area-suburb and also new development in that area, as the area is new growth.

The driving force is mostly because of high cost of living, people is moving to more affordable place.  But whoever ruling the country, the high COL place is almost high COL that drives people out.

 I appreciate a level headed conversation.To further here is where I differ.

The media can say what it wants. The facts are still the facts. That is an area where people have willful ignorance because the facts don’t back up their chosen party. 

The data really isnt really meaningless. It may not  be what we want to hear and go on emotion and feelings. The data in every American’s pocketbook says that inflation is out of control. I gave examples of main things that affect main streets money. Chicken is twice as much as it was if not a little more than twice. Gas is twice as much. A 2x4 is twice as much. In November 2020 including the huge dip from lockdowns factored in my investments were up about 45% return. They have since gone to the negatives and just now rebounded to sub 10%. That is a lot of money to lose. The cost of a mortgage 4% higher in intrest than it was. You get less house for the money. Most people it takes them out of the equation for even owning a home.

The policies of certain areas within the last 3 years have been disastrous for people. Crime is through the roof this is data not my feelings. California has had a loss of people for the first time I think in history. Sacramento might have lost people to the suburbs but I’m talking the whole state. These people and buisness are fleeing the policy of the lawmakers the small buisness can’t afford the crime major buisness can’t either and it’s becoming a passed on burden to the rest of us. These are data points.Look at the firms moving out of nyc and Chicago places moving out of Portland and Seattle. These are huge firms. They are going to different political landscapes. 

The cost of living is a direct correlation of political governmental policy. California,New York, Chicago, all have common political ideas. Meanwhile Texas,florida, Tennessee all have a similar trajectory. To me that is a direct correlation. The numbers don’t lie. My company has benefited because of California regulations and had to move production out of there. 

The high cost of living can’t be dismissed with luck or chance. There is a reason there is a high cost of living in those areas. The is a reason the cost of living is different in other areas. It has nothing to do with sunshine. 

 LOL What you might do NOT understand is that , I totally agree with you that the political situation has impact to certain location. 

However the data shows it is not that great. Folks in Sacramento is still stay in Sacramento area. It is true in some HCOL are that they are leaving the area;.  But they still living inside CA primarily. It's city issue more than state issue.

However, interest rate rising, high cost of living is direct action from the Fed that prints money 600% more than usual (in 2020-2021), rather than who is in the office. As the Fed the one that control the money printing system LOL

While I do agree that high crime is directly related on who is in the local government.

As a whole and California not just Sacramento is that political direction has affected the state. Sacramento is part of the whole. I agree that the fed printing money is a problem. That affects the whole nation. Federal action affects Texas as much as it does California. It affects Maine and North Dakota as well. Federal action is not why people are moving out of California. While it might be a city issue. The same logic applies. The greater group of people (cities) voted for for certain policies. It still affects the whole state. I believe California has lost around 600,000 people in the last few years. While people stay close to Sac. As a whole the star lost.This is a direct result of political policy. Yes printing money from a federal level has contributed to higher cost. But those same cost are nation wide. What is driving people out is the political action resulting in cost of living increases and crime. I’ve never dealt with the state. However I know my company benefited from theier bureaucracy they weren’t allowed to produce product there anymore. I’ve also heard that the time line to get a permit for buildings is a couple years. Residential might be quicker but the permitting process is long. These are political policies.