All Forum Posts by: Jonathan R.

Thank you all for your replies. It sounds like he might be doing just fine the way he has it. 

I was thinking if he is offered a lump some option on the pension he might take that and buy more real estate.

It is hard to believe you haven’t been impacted by COVID financially in some way. Side gig slower, tenant late on rent, losing money on ppe, you name it, a loss in some aspect of life due to COVID. Think harder. It’s a box you check. No paperwork required. 

My father is a school teacher who will in a couple years be retired with his full pension from the school system. He also has a Roth IRA and 401k. He's just a middle class guy who has saved his whole life. Robert Kiyosaki released a book earlier this year on pensions and has several YouTube videos explaining how the pension system is going to go bust. He also talks about 401k fees and poor investments and how Wallstreet is going to be the financial ruin of the average American.

As for me, I’m a real estate guy. All my money is in real  estate or other hard assets. I convinced my father to buy a rental a couple years ago, he bought in cash and the investment has already returned half of the home’s value in rental income, and he still holds the asset. He doesn’t want to take out loans due to his age and risk tolerance. He now understands the value of passive income.

Okay, to my forum question. If you we're to advise my 63 year old Dad what to do with his Roth IRA, 401k and pension in retirement to diversify in case his pension and other paper assets crash, as Kiyosaki suggests it will, what would you say is the best move?

I started out during college and four years after as a realtor. I learned a ton that helped me later as an investor. That being said, you also have to eat too. Selling real estate is tough. I might suggest getting your real estate license but also getting a job in the corporate world. Sell real estate on the side but focus mostly on your corporate job.

1. My cheap contractor takes 3-4 months to rehab a property, so I can buy three properties a year in cash without having to go find another contractor to help me scale. I’m sure the new contractor will be way more money, who knows on the work quality.

I hustle harder when I have to use all cash to do a deal. It’s easy for me to get lean and mean when I can look only to my own bank account to determine if I’m able to grow my business. 

Also, I’ve done less than ten deals, not wanting the added pressure in the beginning that comes with a loan attached to the property. 

What do you think @Jason Lavender and @Brad Simmons?

 Listen to every podcast you can and honestly just jump in. No need to put real estate investing up on a big pedestal. I would recommend looking at the foundation of older homes or buy houses with crawl spaces or slabs instead. I like two bedroom houses, but for less than that one. 
I personally buy cheap homes in rough areas for less than 20k, though that isn’t for everyone. In nicer areas like the one you posted target a buy of a hair under or around 40k and you’ll be fine. Make friends with wholesalers. Check out Kansas Wholesale Houses on Facebook.

@Ryan McCalla to me it doesn’t look like a bad deal. My only concern would be the age of the property and the fact you only get two bedrooms for that price. 1921 was a long time ago. The area looks decent. A good rental for me is under 50k all-in in Wichita.

I like buying in cash. Leverage is lazy. You’ll work harder if you have to use cash only. Buy properties for 50k or below in the Midwest. Once you are an experienced investor with many many deals under your belt leverage 50% or less in the multifamily space. I have a handful of properties owned outright, it’s been a grind for sure but sleeping well at night. I still haven’t paid off my student loans (and glad I haven’t because I have a cool portfolio now) but that’s another debate for another day. 

@Chico Ford Welcome to Bigger Pockets. There is a great community of investors here in the ICT. Best of luck with your investment goals.