All Forum Posts by: Kevin S.

I would agree with what @Mike Klarman said. Western PA is a great area. I would say the best strategy would be to pick up single family homes in the $80-$120k range, put $30-$50k in, rent and re-finance. You can pretty quickly turn this into $10million in more of real estate. Between the steady cash flow and appreciation you would be set.

Thank you Elise. From what I hear isn't it better not to use money to rehab, instead buy properties that doesn't need reno/rehab and keep the money for down payment of another house instead? I stay away from contractors and rehab as I have zero knowledge in that department. But your idea definitely sounds tempting. You are a realtor in western Pa?

Yes I am. My husband and i are investors and we also own a real estate firm that specializes in helping out of state and out of country investors for buy and holds, brrrs, and flips.

What are your thoughts on low carrying cost ag exempt acreages?

Hi Jay. Do you mean agricultural acreages? If so, I have zero knowledge of such investments. I do have to admit I always wondered about it. There was one guy I knew who purchased 'land' (not sure if ag land) in middle of nowhere (I was told) in another state. That was 15 yrs ago and unfortunately he passed and I am not able to find out the end result. What happens if the place never develop and you cannot sell it either? Or it cannot be re-zoned? You have something I don't know? Thanks.

0 Votes

You heard it right and thanks for your input for which I voted for you. I am 100% invested in stock market and zero in RE. What started this conversation was when I saw someone on Youtube say: If you stay in the market and plan to live on your retirement account (401K or otherwise) you will become 'poorer' every year as you draw down money into the sunset. Compared that with RE where your rent/cash flow only increase in time(technically into perpetuity) along with appreciation, leveraging(velocity of money), tax benefits, mortgage paydown etc. In other words you become 'richer' in time. Only caveat is beginning cash flow will be less in RE but will eventually catch up. And of course the passivity of stocks vs active involvement of RE, which can be negated by PM. So in search for that answer I came across BP and decided to put this question out there as members are RE investors (mostly) to hear from them vs CFP who may skew client's investment towards stock market rather than RE(for which I will have another question subsequently).

I have gotten so many valuable input from so many members for which I am thankful. Now, as you mentioned, how do I tell the sharks from those that are not! Hope to find that answer here too! Thanks everyone.

1 Vote

Quote from @Eddy Ogbekhilu:

Quote from @Kevin S.:

Quote from @Eddy Ogbekhilu:

Quote from @Kevin S.:

Quote from @Eddy Ogbekhilu:

Hi Kevin just a quick note to connect and to say thanks for your thought provoking questions insights and analysis you bring to the forum.

Will be 59 soon and looking to give up active work and the 1M questions was indeed where my emotions has/have been wondering. Am comfortable with income from 1M 4d nxt 30yrs at fairly moderate return of 7% ...Once again thanks and am following ur post keenly.

Thanks for following this thread. Lot of people have contributed to this subject so far with varied and interesting opinions. Each with valid points. I am just soaking it in and hopefully will make it work for me, only to contribute later to help someone else in the future as a way to give back. Going to your response of 7% return, is that from REI cash flow?

The 7% is potential expected/guaranteed return of off 1M invested either by way of dividends and the likes.I am not sure if I answered your question correctly!

You did. I was expecting 7% return from cashing flowing properties. Which funds are you looking at. Many of these high dividends funds especially closer to double digits (9-12%) dividends funds tend to loose value over time(downward trending). The upward trending funds/ETFs gives 3.5-4% at best. Maybe someone can correct me.

No particular fund(s) in mind as this moment,work in progress hence am sourcing info on the platform.
Do you happen to have any high dividends funds in mind?

Look up dividend aristocrats. I personally am not invested in them as I am already 100% in stocks and therefore trying to get into RE. Lot to absorb here on BP.

1 Vote

Quote from @Elise Bickel Tauber:

Quote from @Kevin S.:

Quote from @Elise Bickel Tauber:

Yes I am. My husband and i are investors and we also own a real estate firm that specializes in helping out of state and out of country investors for buy and holds, brrrs, and flips.

Do your company also do the property management?

0 Votes

Quote from @Evan Hopple:

@Kevin S.

Split it up between multiple smaller multifamily properties. 5+ unit properties are taxed at the commercial tax rate in most parts of the country. Knowing that I'd buy 2-4 unit properties that are taxed at the residential property rate.

If you're on the fence, financing with a higher down payment could be a good option

Thanks Evan. What did you meant by your last sentence? Isn't it better to pay less down payment?

0 Votes

Quote from @Kevin Johnson:

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.

Investing in real estate is generally more of a long-term play in terms of generating solid return, but there are ways to make money in the short-term! Have you looked into private lending for real estate investors? You can fund fix-and-flip projects on short-term loans with a solid interest rate as well. Something to look into if you're not sure about buying property!

Thanks Kevin. You get my vote. No, I never considered it and never look into it. Now that you mentioned it you piqued my interest. Need input from you and other investors about the risk level. Do you have any lead/person/company name?

0 Votes

Quote from @Leslie Pappas:

Agree with Dan and Zachary, there are a lot of options and it depends on how active of an investor you want to be.

If you’re looking to take a more passive role in your real estate and want the benefits of diversification there are funds available to accredited investors that are designed to allow investors the opportunity for ownership of institutional investment grade property that is occupied by regional, national, and Fortune 500 credited companies. This might be something for you to look further into based on the goals you’ve shared.

Thank you Leslie. I briefly glanced at your company 'Archer Investor' and will look into more depth tomorrow.

1 Vote

Quote from @Nicholas L.:

@Kevin S.

definitely start in state.

Appreciate that advice.

0 Votes

Quote from @Elise Bickel Tauber:

0 Votes

Quote from @Adam Davis:

Put it in a managed portfolio and get a SBLoC without liquidating. I have a financial planner in Oregon/US VI who can write these loans for up to 2% under prime (last we spoke about it, like 2 years ago), and the portfolio cashflows something like 10% per year.

Thanks. Can you share contact info if you want to DM me?

0 Votes

All Forum Posts by: Kevin S.

Kevin S. has started 22 posts and replied 381 times.

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?