All Forum Posts by: Patrick McGowen

Todd Williamson has over fifteen years in the financial services industry, currently an associate vice president at Morgan Stanley. As a former practicing CPA Todd has a keen understanding of the math behind investments, particularly tax implications. Todd will be sharing a few specific strategies that might be beneficial for you.

For those of you actively hustling to build a portfolio, Todd's first strategy may not be beneficial for you, yet.... But it may be very useful when you want to diversify across more properties and markets, and become totally passive. This strategy is similar to a 1031 exchange, but allows you to trade one or more real estate assets that you are actively managing and move the money into a private real estate partnership that has numerous large real estate assets across the US.

Another strategy, for those of you self employed, can roll money from an IRA into an employer 401k, and get access to up to $50,000 cash for use in your investing through a policy loan.

Join us to hear more about different tools you can use on your way to building wealth.

There is a Kevin O'Leary On Wealth Event in my hometown, looks like many across the nation, very much has the flavor of a guru course, but I can't imagine he is pitching wealth through real estate.  Anyone have any idea what the content is?  

The Playing with FIRE (Financial Independence Retire Early) Documentary is in theaters only.  Be one of the first to see this movie about taking control of your finances and investments.  Movie at 6pm, discussion to follow at Bozeman Pond Pavilion.  buy tickets here https://www.tugg.com/events/playing-with-fire-07jb

@Josh Rogers, "the market" can mean a lot of different things.  Encourage you to be a cashflow investor instead of capital gains; or income sheet over balance sheet.  If by market you mean the stock market, company earnings are 4-5% on stock price cost.  You can beat this income in real estate.  Since my original post was about interest and inflation; If you mean interest rates; anyone's guess really, but the mechanics of our monetary system would indicate to me that interest rates cannot really rise much (maybe one percent higher).  Even with then massive scale of quantitative easing, the Fed has managed to keep inflation at 2% target, so my best guess is that inflation will stay at around 2%.  

Again, I encourage focus on income.  If you can create passive investment income, you don't have to worry about the market.  

@deborah 

@Deborah Olsenundefined  "is there a market for this at all up there?"  there is a market for real estate everywhere, have to be more specific.  Libby is what I would categorize as typical rural Montana.  Encourage you to look up census data to get an idea of population density and growth to make sure you are comfortable with the small renter/buyer pool and slow growth.  Can find properties that cashflow, but be prepared to weather some vacancy, and don't plan on a lot of appreciation.  PM me if you want a realtor referral in Libby

Hey Bozeman gang, if  you have Bozeman or Montana as a keyword alert, can you tell me if you got a notification of the event I just posted for our May meet up.  I am curious how visible these events are, events seem to be a little hidden in the BP website.  Thanks.  

We will tour a house move (sfh moved from Bozeman to Manhattan) and a four-plex construction project (Belgrade), optional we will have a beer and follow up discussion at the Local in Belgrade.

Oh yeah, remind them of the 100 10 1 rule.  look at 100 properties, make an offer (usually what feels like an embarrassingly low offer, but has to cashflow) on 10 and maybe one will get accepted.  Don't even consider negative cashflow until you have nine rejected offers.  

@Andrew S.  Reading between the lines, a plex that is not owner occupied means they are likely putting 25% down.  to have negative cashflow with this big of a chunk, I know they are anxious to get started, but this could delay property number 2 for quite a while, what if it is bigger loss than $200/mo (first time can miss an expense or realize rents are too high), now any money you are setting aside for number 2 disappears and you are stuck with this one looser.  Single family neg-cashflow can be a little safer since you can put less down, and easier to sell (home buyers will over pay but investors who would buy duplex typically do not).  I would encourage them to make an offer low enough to make it positive cashflow, worst that happens is the offer gets rejected.  and/or look for innovative ways to reduce expenses or increase rent.  Otherwise keep looking keep making offers (that make sense even if they seem low-ball) and eventually they will find the right deal or stack up enough money to make the deal work.  

This is in Bozeman, Montana