All Forum Posts by: Jordan Thibodeau

@Brandon Hall Jolly Good Form Sir. /Tips his monocle towards Brandon

@Edward Stephens sounds like you know what you want to do, you just want someone on the forums to agree with you.

Remember, Real Estate is an asset class. Every asset class has its ups and down, but if you put all your eggs in one basket and disregard the federal incentives to invest in your 401k......

Also, according to the IRS:

1. If a 401(k) plan provides for hardship distributions, it must provide the specific criteria used to make the determination of hardship. Thus, for example, a plan may provide that a distribution can be made only for medical or funeral expenses, but not for the purchase of a principal residence or for payment of tuition and education expenses. In determining the existence of a need and of the amount necessary to meet the need, the plan must specify and apply nondiscriminatory and objective standards.
2. (Reg. §1.401(k)-1(d)(3)(i))

My 401k specifically states that hardship is defined as medical expenses, loss in the family and etc. I would make sure that your company approves your use case, to me it sounds like it would be a liberal interpretation of hardship.

Also, what about cash reserves? Your plan is to buy two properties, how much cash does that leave you if something goes wrong?

@Alex Vidal

Correct, I should have added contributions to 401k are tax free and returns are taxed. While a roth is post tax, but returns are free after 59 1/2

@Kevin Siedlecki It's a rule of thumb. If you're honestly saying that his first post was stylistically correct, I would have to disagree. Too many people post on these forums with one gigantic paragraph that's almost impossible to read.

@Samir S.

 I didn't know about the android bug, apologies.

I'm on the side of "no." Because if they end up painting a terrible dark color, when they go to repaint it, the color could still bleed through.

If I was going to approve, I would have to see the color in advance, and at a minimum the color would have to look good and match the gloss rating of the walls they are painting. Quick Tip: Make sure everything that is painted inside the house is at least Semi Gloss, and High Gloss for kitchens and bathrooms.

@Kevin Kim

 Welcome.

One thing: If you can, remove the following thought from your brain: Is it a good time to buy?

If anyone really knew when it's a good time to buy, that person would be living in a nice private island sipping margaritas.

One thing buffet never worries about is interest rate timing and taxes. Why? If you find a good deal, the rest tends to fall into place. 

Think in terms of your deal specific criteria and what makes sense financially for you and your family. There will always be good deals out there. 

@Max Maloney

 Another bay area hommey? Welcome home brother. I live in San Jose and I work for a tech company.

I invest in Sacramento, it's a 2 hour drive from San Jose. The best part is im not investing out of state so I still have control over the property. I would suggest look instate first before going out of state.

When I bought my property in 2013 I could go lower than 25% but then PMI comes into play and that can be a deal killer.

@Samir S.

 Welcome to BP. I'm from San Jose and I invest in Sacramento. Also, please add line spacing to your original post, it makes it easier on the eyes. Remember 5 sentences = one paragraph (god i hated English class).

Two things: When analyzing a property, don't mix the value/earning power of the property with your own personal financing. Because if you go to sell this property other investors will consider the former not the latter. 

Analyze the property based upon it's current asking price, and how much income you can bring in (after expenses, not including mortgage). If it turns out the property is barely earning a return, then it's time to look for another property.

Currently the market in Sacramento is starting to heat up again, so price to income values on properties I'm seeing is high which means the return on investment is low. Now doesn't mean you can't find a great deal, but it means you will have to look harder for it.

Think, if you took the same money and threw it into a 401k, you would earn a tax and effort free return in stock somewhere around 6%~ a year (Based on historical returns from 1800s to today). Now if you took that money and invested it in a over priced piece of property, you would now earn a lower return and you would have to spend a lot of time maintaining it.

Regarding a larger down payment, I'm all for that because it means your mortgage payment is lower and you have a higher margin of safety, HOWEVER, if the underlying asset is not returning much, I wouldn't advise increase in the down payment to make it look as if the investment is doing better than it really is.

I say to thee KEEP LOOKING and BE PATIENT. You'll eventually find a good deal.

Welcome to the forums!

Yeah I a couple realtors drop off their mailers at my house every now and then.

Go to your local RE broker's office and ask around.

Well played sir.