All Forum Posts by: Max Gabriel

Hello,

Can you please recommend a reputable residential closing attorney in the Boca Raton area?

Thank you!

Hi All --

I have posted here once or twice before.

In previous years, I had come into some capital, approximately ~$5M. Much of which is cash, some is in stocks/bonds/fixed income. 

Previously, I had been working two big corporate jobs, mainly in a back office accounting/tax function; however, after a series of life events, I realized life was too short to spend your days doing work you despise, plus, the money I was making at my 9-5 was not that exciting. I consider myself more personable than your prototypical accountant, and want to transition into the world of RE deal making, where I could interact with others, and utilize my capital to assist me in generating some passive income, slowly increasing my portfolio to the point where I do not need to work the 9-5 and prioritize spending time with family. 

I'm looking to connect with established professionals in the space who could assist in steering me in the right direction.

Cheers!

Quote from @Travis Timmons:

@Max Gabriel Sitting around isn't the answer and comfort is not the goal. I agree with you there. That's not a full or good life. 

However, money is no longer the primary driver. That's odd and hard to get your head around. If you love real estate, go for it. If you're doing it because you want to grow your net worth, that's the wrong reason. Either way, go slowly with preservation of capital being your main goal. It's time to pull some chips off of the table. 

 I agree Travis, it is hard to grasp. Now that I have this cushion, I would like to cater my career to better align with my interests, I feel like that at least can be an option. I want to have more control over my time and dont see a W2 as a necessity anymore.

Quote from @Travis Timmons:

Compound interest is magic. If you want to park it all in an S&P or total stock market index fund, a very fair estimate for average annual returns is 8%. In 30 years, $5M turns into $50M at 8%. If the average annual return was 9%, that puts the balance at $66M in 30 years. That assumes that you don't spend it, but either way, it's going to compound and grow like crazy over time. 

I'm sure the last thing that a guy who just got $5M in cash wants to hear is to think about your monthly budget, but can you live comfortably off of $10-20k per month? If so, you can live off of interest income and never dip into your $5M.

If you can't quit your job with this amount of money, you need to re-evaluate your lifestyle and expenses. And understand that you don't HAVE to invest this anywhere right away. Take a breath, be grateful, and proceed with caution. Capital preservation should be the primary goal. Don't lose what you have built. Stupid loses more than smart wins.  

 Thanks Travis, I appreciate the feedback. 

I don't really spend more than $3-4K a month, but over time, situations will arise where I will want to buy a home, send my kids to private school etc. 

I agree with your point, mainly, I don't want to sit around and do nothing. I want to be involved in something, I like interracting with people and want to get some real estate under my belt. I can't retire at 25.

Quote from @Travis Timmons:

$5M x 5% simple interest is $250,000 per year (that will compound and grow over time assuming you don't spend more than $250k per year in living expenses). Live off of that and forget real estate. You should be able to live off of simple interest and dividends with that amount of money. 

Is that $5M after tax or pre-tax? Either way, simplify your life. The returns of real estate may be higher but so is the hassle factor. Focus on protecting what you have and creating an amazing life over building more wealth.

Also, whatever you decide to do, do it slowly. There is this tendency to want to deploy a pile of cash right when one gets it. Resist that urge. It's even worse if you've had some time to think about it leading up to getting that pile of money. 

Thanks Travis, I understand that, but I also hate my day job, so I want to be involved in something on a day-to-day, and keep the $5M growing to the point where it becomes generational. Although, it probably should given the compounding factor you had mentioned.

Hi All --

I have recently came into a decent amount of capital, approximately ~$5M, free and clear, and I have begun reading Brandon's book on rental property investing. I am only 25, and I despise the day-to-day mundanity of the corporate world. I am 25 years old and believe I can turn this $5M into a generational empire if I approach this correctly. 

I live in NYC, so I can't see myself house hacking, I don't think my significant other would be on board with it either. 

What do you recommend as some ways to get started? 
How do you identify areas of significant interest to you?

How important is it for your first property to be within range of your current home?

Any advice would be helpful. 
I would love to connect with real estate professionals, investors, etc. and begin building my network!

Cheers!

Hi everyone,

I'm diving into real estate investing after reading BiggerPockets and securing some capital. I'm keen on building a portfolio, particularly in multifamily properties.

Looking for recommendations on learning underwriting for multifamily properties—books, courses, or strategies that have helped you. Any practical tips on starting out or avoiding common pitfalls would be greatly appreciated.

Thanks!