All Forum Posts by: Kevin S.

@Kevin S. If your lenders pull your credit within the same time period, it counts as one pull.  Say about 2 weeks, maybe three.  So, wise lenders will ask first,and if they understand you are shopping, they will wait until you tell them.  Basiclaly, you reach out to a bunch of lenders, give them your info, situation, etc.  Once you've contacted whom you want, then you tell them to pull your credit say one particular week.

A credit check here and there doesn't kill your credit, and it recovers relatively quickly.

Quote from @Kevin S.:

Quote from @Timothy Hero:

depends on the life you plan to live in retirement. In my opinion, buying homes all cash with no intentions of refinancing them isn't the way to go. You have dead equity that you never plan to ever tap into, which is arguably one of the best advantages of real estate.

Assuming you have $1M and are nearing retirement, I'd keep $250k in the bank and put $750k down on rentals with 80% financing. This depends on how connected you are for investment opportunities , of course.

The mortgages offer tax advantages and allow you to leverage your capital. Pay a management company to avoid having to come out of retirement.

There's no right or wrong. It's what works for you.

 Pretty good input and I voted for it. I see you are a mortgage broker not a lender.  What is your take on choosing between a mortgage broker vs lender?  I am told broker can shop for better rates, has more choices(of lenders) and use one credit hard check vs more than one credit pull if shopping between 2 or 3 lenders. Thanks.

Being a broker, I may sound biased, but here's the reality: when you call a lender, they are going to sell you that they are the best option, because nobody is going to sell you on using their competitor.

But as a broker, there's no reason to be biased. If i quote you with 8 different lenders, I get paid the same amount regardless, so there's no reason for me to play a favorite.

To add, if you're working with an experienced broker, he or she will know the smoothest lender to work with.

Quote from @Kevin S.:

I wonder what do someone approaching retirement do with $1,000,000.00?  Buy a single property with cash and have about $65,000/yr in cash flow or use it for DP on a $4,000,000.00 property?  Would the cash flow be the same?  Or leave it in SP 500 ETF?  The question is probably over simplified but a good starting point for feedback.  Thanks.

 Buy anything, as long as you get about 10% NET per year. Who cares if 10 SF, or one MF, money is money

depends on the life you plan to live in retirement. In my opinion, buying homes all cash with no intentions of refinancing them isn't the way to go. You have dead equity that you never plan to ever tap into, which is arguably one of the best advantages of real estate.

Assuming you have $1M and are nearing retirement, I'd keep $250k in the bank and put $750k down on rentals with 80% financing. This depends on how connected you are for investment opportunities , of course.

The mortgages offer tax advantages and allow you to leverage your capital. Pay a management company to avoid having to come out of retirement.

There's no right or wrong. It's what works for you.

Hi Kevin, 

I think as everyone has said so far, it depends. 

I personally have built a large portfolio over the past decade and love passive income. That being said I have also been very active and doing rehabs through the last decade to support my growth even more. 

By your question, it looks like between a property (or properties)  and staying in the SP you want to be hands off. 

I think you you already have experience in the markets maybe keep some of your cash there and diversify into a few passive income homes.

That way you get the best of both worlds. I personally am all in on real estate but I think depending on tax benefits, and ease of use for you that's the best fit for you. But if you have not been in real estate so far putting so much in al at once may or may not be a fit for you as stocks and the market are much more flexible when you want to get out of something that is not working. 

Wishing you good luck on your decision. 

@Kevin S.

Deciding what to do with a significant sum of money, especially as someone approaches retirement, involves careful consideration of financial goals, risk tolerance, and lifestyle preferences. Here are a few options to weigh, along with their potential considerations:

1. Buy a Single Property with Cash:

Pros: Stable Cash Flow, Reduced Debt, Full ownership gives you control.

Cons: Illiquidity, Property Management, Concentration Risk

2. Use it for a Down Payment on a $4,000,000 Property:

Pros: Leverage, Diversification, Potential Appreciation

Cons: Larger Debt, Market Volatility, Higher Expenses

3. Leave it in S&P 500 ETF:

Pros: Liquidity, Diversification, Historical Returns

Cons: Market Volatility, Market Risk

Considerations:

Income Needs: Determine how each choice will fit into your projected income needs in retirement.

Determine your level of risk tolerance. Stocks and real estate have distinct risk profiles, so the choice you choose should be based on how comfortable you are with risk.

Diversification: Take into account how crucial it is for your entire portfolio to be diverse. Having a diverse portfolio of assets can aid in risk management.

To make decisions that are in line with your retirement goals and financial well-being, you must do extensive study, maybe with the help of financial specialists.