All Forum Posts by: Michael Swan

Hi Patricia,

Georgia area should be a nice emerging market now.  How many properties do you have so far?

Swanny

I listen on Tunein Radio App.  The latest one on that app is Nov 9th.  The last one before that is Nov 6th, 5th, 4th, 3rd, 2nd.  Get that app.  I believe it is free.  I have had it for at least 3 or years.

Swanny

I just had someone contact me and wonder what kind of money I make at my w2 job.  I make, with 8 years of education after high school at my daytime teaching job about $46,000 and my night time adjunct professor job another $15,000.00.  My wife makes $20,000 as a part time special education assistant about $20,000.  A few of you I have talked to make over $100,000.00 and are dead broke.  Your car payments are over $500.00 a month and you need to first get your financial life in line first and get as far away from "0" as you can. I don't believe in instant gratification, something for nothing, basically mentally diseased, GARBAGE!!!  I am not a big fan of Dave Ramsey regarding his take on NO DEBT is good debt.  However,  if you are making over $100,000.00 a year at your w2 jobs, you need to get some help to slash your expenses.  Dave Ramsey is just the guy to help you get far away from Zero.  Again if a guy that only has a family combined income of approximately $80,000 can do this in an extremely pricey area of the country can do this, SO CAN YOU!!!

Good morning by the way!!

Swanny

Hi Ken,

Remember,

Only purge that retirement account for downpayment on cash flowing real estate.  You will only clear about $40,000, after taxes and penalty etc...  You have to pay taxes anyway, no matter what your age.  Sooooo, $6,000 would be your 10% penalty.  Happy rental property hunting!!!

Swanny

Hi Bill,

Thank you for adding your wealth of experience to verify the points I have made.  I really appreciate your thoughts here.  

Have a great day!!

Swanny

Your welcome LaTrina.  I'm glad I can help.

Swanny

So right Adrian,

I always tell people, if you change the way you look at things, the things you look at change right before your eyes.  I don't know how many times I start talking to people about this stuff and their eyes get all glazed over and it is soooooo far from their reality, that they can't even fathom the concepts.  Their cognitive schema or life long financial ladder has been leaning for soooooo long against the wrong building, they are not able to think on the level I am speaking.  You know what it takes?  It takes a financial catastrophe or significant financial setback for people to look for a different map to financial freedom.

When I realized my map was getting me to the wrong place real fast, I found a new map!!!

Swanny

Hi Bianca,

I believe it was a tax deferred IRA. Just cashed it in when I needed down payment money along the way. Paid taxes and penalty and am done with it.

Swanny

Hi Michael J,

Read and study that info and live it baby!!!  When you stop learning, you stop living!!!

Swanny

Here is a reply that I just sent to someone wondering about investing in passive cash flowing, tax deferred, real estate. He was interested in investing in a self directed IRA. I DON'T LIKE THE IDEA. Read below.

GET THE MONEY IN YOUR HANDS, BEFORE IT IS TOO LATE!!! Paying the taxes and the measly 10% penalty is the way to go.

First, Why would you invest using a tax deferred instrument (REAL ESTATE) inside a tax deferred self directed IRA? That makes no sense at all. Take the bite and pay the taxes for whatever you are removing from your IRA for the down payment on Tax deferred real estate and get rid of the middle man (Financial planner, mutual fund managers, expense ratios, 12b fees, and plan administrators).

Next, guess what? You get to start your way to financial freedom and get cash flow that you can use now. No imaginary date in the future. I don't know about you, but I want to replace all my W2 earnings with passive tax deferred cash flow, that I never have to pay taxes or very little taxes for the rest of my life. 

When all is said and done, you are creating multigenerational wealth. You kids inherit the real estate at a stepped up basis and if they keep using the power of the 1031 exchange to buy bigger and bigger properties that cash flow more and more with 30% down payments (Leveraged taxed deferred debt), which is good debt. Ultimately, if they don't do a straight sale, they get it all at a stepped up basis and depreciation starts all over again.

"Reality is merely an illusion, albeit a very persistent one." ALBERT EINSTEIN

Change your reality and you change your life.  Again, if I can do it, SO CAN YOU!!

Swanny