All Forum Posts by: Ken M.

My point is you have correlation, but not causality.

You have to look at the total tax burden - not only income tax. All States provide more or less the same services for a very similar cost, so what they are not raising in income tax they have to bring in with other taxes.

Texas for example is famous for no income tax, but they are one of the highest in both sales tax and property tax, so all things considered Texas is pretty average.

Florida's total tax burden is one of the lowest in the country, but the cost of living is not. And it's about to go up quickly because of property insurance. 

Here is a cost of living index, FL is on the higher end.

But that is not the whole story either. 

You also have to consider income. If you make more money you can afford more. Not to pick on FL, but they make a really good example, because while their cost of living is on the high end the average income is one of the lowest.

BTW, I am in Milwaukee. And one of the reasons why Wisconsin is quietly and slowly gaining popularity in every moving statistic is because you have a moderate cost of living, but good income, a moderate climate without extreme weather patterns, heat or stroms and plenty of fresh water from the Great Lakes. And a high quality of living, that's why our number one migration is from Chicago and Illinois. 

Is that impacting real estate prices? Looks like it does, Redfin says Milwaukee was the #1 hottest real estate market in the US in February with a 20% increase in median price. I have to add: February was an outlier, we are realistically at about half of that.

@Catie Fihn:

I love this question!  I currently have a home in mind in the richmond va area that has an inground pool.  I think it is a tremendous opportunity to invest, repair and really maximize our investment.  I worry though that by having a pool it may water down the potential buyer pool (no pun intended) Is there any data on how pools affect the buyer market?

@Ken M. how can you possibly know what he teaches when you're not in the community? Oh because you watched some free YouTube videos? That free information is free for a reason-it's a concept but doesn't tell you how to implement. 

You're exhausting and I'd like for you to remove or re-word your post that is slamming my character calling me a co-conspirator and telling people they will 'suffer consequences' if they take advice from me. Clearly, this is what you get enjoyment from - attacking other people's character. 

The problem is that I'm starting over with 10 million to invest.

@Joe S.  100%
one investor one deal and have them be part of decision making (which most always refer to you as the sponsors expertise). 

no commingling funds, no multiple people per deal (I believe in California you can but not legal advice).

@Ken M. how can you possibly know what he teaches when you're not in the community? Oh because you watched some free YouTube videos? That free information is free for a reason-it's a concept but doesn't tell you how to implement. 

You're exhausting and I'd like for you to remove or re-word your post that is slamming my character calling me a co-conspirator and telling people they will 'suffer consequences' if they take advice from me. Clearly, this is what you get enjoyment from - attacking other people's character. 

I am trying to get into the world of real estate currently going for my real estate license in Pennsylvania, but I been thinking about wholesaling. Do you need to your real estate license to wholesale real estate from a different state. Please let me know

thanks!!!

Quote from @Ken M.:

As you can see from the numbers below, the states that carry the highest penalty for making a profit are also the ones, generally, with the highest cost of housing. They also tend to be the states that are either "sanctuary" states or "sanctuary" cities that welcome illegals which drives up taxes to care for them. 

Because of the higher cost burdens of paying for people who aren't contributing their tax share, those that are actually paying taxes (you)  have a higher tax burden. That tax burden is calculated into what is needed to purchase and maintain a house. More taxes equates to less disposable income. 

Your price for buying that investment property is/should be a "profit motive". Property taxes play a huge role as well. Some states have a burdensome "real estate transfer tax".

If it isn't profitable, why are you investing there? If you can make considerable more by investing in the state next door, why wouldn't you? 

State	Code	2000 Top Rate	2025 Top Rate	Change	Cost up/down
California	CA	9.3	13.3	4.00	up
Hawaii	HI	8.8	11	2.25	up
New York	NY	6.9	10.9	4.05	up
New Jersey	NJ	6.4	10.8	4.38	up
Minnesota	MN	8	9.9	1.85	up
Oregon	OR	9	9.9	0.90	up
Massachusetts	MA	12	9	(3.00)	Down
Vermont	VT	% of federal liability	8.75	n/a	not available
Wisconsin	WI	6.8	7.7	0.88	up
Maine	ME	8.5	7.2	(1.35)	Down
Connecticut	CT	4.5	7	2.50	up
Washington	WA	0	7	7.00	up
Delaware	DE	6.4	6.6	0.20	up
South Carolina	SC	7	6.2	(0.80)	Down
Rhode Island	RI	% of federal liability	5.99	n/a	not available
Montana	MT	11	5.9	(5.10)	Down
New Mexico	NM	8.2	5.9	(2.30)	Down
Maryland	MD	4.8	5.8	0.90	up
Virginia	VA	5.8	5.8	No change	No change
Idaho	ID	8.2	5.7	(2.50)	Down
Kansas	KS	6.5	5.6	(0.85)	Down
Georgia	GA	6	5.4	(0.61)	Down
Nebraska	NE	6.7	5.2	(1.48)	Down
Alabama	AL	5	5	No change	No change
Illinois	IL	3	5	1.95	Down
Oklahoma	OK	6.8	4.8	(2.00)	Down
West Virginia	WV	6.5	4.8	(1.68)	Down
Missouri	MO	6	4.7	(1.30)	Down
Utah	UT	7	4.6	(2.45)	Down
Colorado	CO	% of federal liability	4.4	n/a	not available
Mississii	MS	5	4.4	(0.60)	Down
Michigan	MI	4.4	4.3	(1.10)	Down
North Carolina	NC	7.8	4.3	(3.50)	Down
Kentucky	KY	6	4	(2.00)	Down
Arkansas	AR	7	3.9	(3.10)	Down
Iowa	IA	9	3.8	(5.18)	Down
Ohio	OH	7.2	3.5	(3.70)	Down
Pennsylvania	PA	2.8	3.1	0.27	up
Indiana	IN	3.4	3	(0.40)	Down
Louisiana	LA	6	3	(3.00)	Down
Arizona	AZ	5	2.5	(2.54)	Down
North Dakota	ND	% of federal liability	2.5	n/a	not available
Alaska	AK	0	0	No income tax
Florida	FL	0	0	No income tax
Nevada	NV	0	0	No income tax
New Hampshire	NH	5	0	No income tax
South Dakota	SD	0	0	No income tax
Tennessee	TN	6	0	No income tax
Texas	TX	0	0	No income tax
Wyoming	WY	0	0	No income tax

This is a gross over simplification and a correlation=causation fallacy when it comes to Minnesota. 

Minnesota has one of the highest INCOMES in the Nation. Both individual and household. 

Minnesota is also founded, built and in large part still operates as a Scandinavian Culture. 

This is why Minnesota has more parks, trails, and assorted outdoor venues than ANYWHERE in the Nation. It's a social expectation in Minnesota that there is jogging/walking trails, ample sidewalks, well lit streets, playgrounds and parks in EVERY neighborhood, free zoo's, free beaches galore.......

There is a reason why Minnesota is a TOP tourism state, and Minnesota invests wisely into it very heavily. 

THIS is one of the reasons for high incomes. It's not a byproduct of tax's, it's a byproduct of the industry that's driven from the investments made via the tax's. 

Minnesota also has one of the highest residencies of millionaires. And a significant volume of 2nd, 3rd homes. 

Is there plenty of "dumb" in Minnesota from CITIES of stupidity, dang-right there is. But don't get it twisted, in a State nearly the size of Texas a handful of moronic cities is to be expected. Just ask Texas, they have some "red-headed step-children" too. 

Minnesota is "the" capitol of assorted engineering, medical and agricultural fields. 

Do you eat? Do you get medical care? Do you use anything built via engineering? Yeah, that's a recession buffered basis I'd say. 

6 figure income tenants is such the norm it's an expectation for well over 50% of my portfolio. INDIVIDUAL income. Household income all but has to be 6 figures in the vast majority of units. 

Do you know what comes with such tenants? 

Ambition. 

CARE of things like there credit, of not getting in bad with a Landlord who can readily garnish wages etc.. 

Tenant nightmares here are the ever so rare exception UNLESS your playing in a sandbox that is designed for such, like C/D class "poverty" income levels. 

Look it up, what we define as Poverty in Minnesota is MORE than the median income for some other States..... Yeah, think on that for a moment. 

Quote from @Ken M.:

Quote from @Stephen Nelson:

Just because several people above in thread mentioned TN doesn't tax income?

Neither does Washington state.

But they recently instituted a 7% capital gains tax. Pick your poison. 

The Washington state 7% capital gains tax doesn't apply to real estate. (It also doesn't apply to a bunch of stuff as well.)

Don't get me wrong. The capital gains tax is a stupid idea. But it targets the wealthy tech employees at Microsoft, Amazon, Meta, Google, etc.

Quote from @Ken M.:

Quote from @V.G Jason:

Quote from @Jay Hinrichs:

Quote from @Mike H.:

How in the world does crypto make any sense.  Its nothing but a speculative play on an investment that literally has no value unless more people continue to buy it. Even if you could use it to pay for things (which you can a little but nowhere near enough places take it), the issue is how is it possibly better than just using a debit or credit card?

Your security for crypto is absolutely terrible.  If someone hacks your bank account, its insured and you get it back.  if they steal your crypto, its gone forever.  And these crypto exchanges have been hacked or they themselves have stolen money out of accounts.

If you like ponzi schemes, then crypto is the way to go.  Just time it right so you buy before the suckers go in and you sell before everybody else gets out.

But I just don't understand how you can possibly believe that crypto is better than cash.  Cash is digital too with the use of credit/debit cards or ach.  And its insured.

The only thing that makes crypto go up is to have more people want to buy it.  But what are they doing with it other than holding it and hoping more people buy it.  There literally is almost no value in using it.

bad actors hiding their money is a big % I suspect

You can't hide on the blockchain. It's transparent.

.
Your comment "You can't hide on the blockchain. It's transparent."


Now, that is Not something I believe. No offense meant. But it simply isn't believable.

The whole reason the blockchain got started was to launder funds and to do illegal things. Okay, let me modify that, as soon as it was created, it was used for money laundering and illegal things so people didn't get caught.

Ok then don't believe it. Just like this entire topic, you're just not educated on it. For others that are open minded and willing to try to understand, then read below.

Do you know what the blockchain is or even means?

The blockchain is a distributed, public ledger that contains the history of every bitcoin transaction. Anyone can download a copy of the blockchain, and it can be inspected to trace the path of bitcoins from one bitcoin transaction to another.

What you're staying is an exchange issue, as in not being regulated. Not a blockchain issue--it's literally meant to be the most transparent system. 

It is always 100% clear where the asset moved, it's not always clear if you can access it. That depends on the exchange. Not blockchain.

Anyone thinking their truly anonymous has learned the hard way their not, or due to international law has gotten away with it.

There's a reason we know the Lazarus group was behind Bybit and Heather Morgan/Ilya were behind Bitfinex among many others ---blockchain.