All Forum Posts by: Mark Pipkin

I have an offer on another property that is contingent on my home selling. The closing date on that offer is getting within the 30 day time to close window. I currently have my house on the market for $225k and I have been offered $205k and I pay half closing; $4k.

We had another couple look at our house today and they might want to put in an offer, but are undecided according to our agent. 

We have until 10p tonight to accept the 1st offer. 

There is one house on the market like ours, capecod, that is listed for $195k, but is 500sq ft less and no basement.

I know that in the end the choice is mine and the wife's. I also understand that no one is able to predict the future. However, I would like some thoughts on my above ramblings and this conundrum I find myself weighing.

Thank you.

I'm putting my current home on the market. The flooring will need to be replaced. I'm looking for an ARV of $215k in the Lawrenceville, GA market. I feel that laminate will be more attractive than LVT. What about over all value?

The house has a wood burning fire place.

~mp

What about in the year 2008 when the Dow ended the year at 8,776.39. Down almost 34% for the year. I'm sure that everyone in the market that was retiring at that time was thinking, "Man I'm glad that was a 34% drop in price. I might would have been okay in the market..."

I know I didn't hear that from the elders I talk with. The thing is, investment is a game. Those that needed to cash out after 2008 to live off the income of their stock portfolio took major losses. In fact their $1 was now worth $0.65.

Again, it is all a game. Yes the market recovered, and yes the market will crash again. Yes, people will make money during the crash. Those with money stand to make a great deal more during the crash.

I'm not able to change the facts of the past. The crash in 2008 hurt a great deal of people going into retirement. It wasn't a sound investment for them. In my opinion, might as well go to Vegas.

~mp

@Dan H. for sure I am a dumb investor when it comes to the stock market and mutual funds. My 401k was also the result of the decline around 2008. So my gains were eaten up by people who just chose to spend less on companies in the funds I was part of. Yes, same thing happens with home values, but rent 

 And yes, when I look at what I have paid off on the house to what the equity in the home is now, buying in 2010 would gross about 10x. Though I did pay all that interest. :) Landlord or bank, someone is getting paid.

I'm also not a young worker. I'd need to change jobs to get a raise :) 

From what OP stated in the thread, looks like he vest right away. I don't think I have worked at a company that vested right away. That is a positive sign.

~mp

@Matthew Otto I don't agree with the "free money" aspect of the 401k and the match. How long do you need to be at your company for the 50% (max of 3% of your paycheck if you contribute 6%)? 

It is true that your taxable income will be lower, but does that really matter? Think about how much you make and what it means for your bottom line.

This is the federal tax brackets for 2019.

12% - $9,701 to $39,475
22% - $39,476 to $84,200

6% of $50,000 is $3,000 and your company contributes $1,500. The $3,000 isn't enough to drop to the lower tax bracket.

If you saved it yourself, in 3 years you would have $9,000. That is nearly enough for 10% on a $100,000 property.

A good 401k is 6%, and 8% max. Real estate investments are averaged around 11% to 12% return.

This is just my opinion. I cashed out my 401k about 5 years ago after borrowing against it to buy my first house. What did I use the money for? To pay off as much debt as I could. The house I bought in 2010 has doubled in value. So much better than my 401k would have done. Even if the market crashes, I will still have the asset and people still need places to live. Oh, and I had about $8000 in my 401k when I cashed it out. I think I might have seen $5000 of it after tax penalty.

Run the numbers for yourself.