All Forum Posts by: Randy Bloch

Do you understand why your credit score is low? I would download credit karma app on your phone.  Analyze this and then Decide how to improve it.  Type of credit card won’t matter....but the larger credit limits you can get the better as it decrease your credit utilization.  You could also just ask your current credit card to increase your limits and accomplish the same.   Certain things matter a lot more than others...download the app and learn.

Sable was built with STRs in mind I would not worry about regulation as much.  There is comes down to do the numbers make sense at the purchase price and how does the rental program impact your ability to run your business. I dont think you get set to set the price and the units are leased in next unit up style...so I didnt like this.

I can hook you up with a north loop realtor who would be able to give you the down low on whether owners are making money @Sable. My guess is no...I passed on them originally as the pro forma seemed really rosy. I think SFH might be better bet for a STR in Minneapolis

@Shaun Hatton

I own condos in 5 different building in north loop and all prohibit STRs. There is new building “sable” that is approved by the city for STRs...but you might need to include it in their rental program

@Kyle Ashmore

I understand u can get reoccurring income from stocks...I don’t see it as the same though. I can get to 5k reoccurring rental income stream with less net worth than using the % 4 rule and sleep better at night because there is less risk.

I know I can, already done it with personal rentals and syndication deals.

Just my opinion

I am not crazy about the 4% rule myself.  My preference is if I need 5k per month to live I would like to create a reoccurring revenue stream of 5k and then have $xx lump sum for flexibility.  I think many people involved in real estate can relate to this more than 4% rule.  With this approach u don’t need to ever worry about running out of money.  

For me $5k per month and $500k seems like it would work.

Since you already have a good career and high W2 can you expand on your motivation of getting into real estate?  and when you say get into real estate what do you mean? wholesaling, flipping, buy and hold, syndication?  

I am in an alternative investment club that invests in lot syndication deals (LP side) There are ton of MDs and successful tech employees in the club.  If you dont mind your job at an MD and are looking at building passive income for retirement investing in syndicated deal might be a good transition.  

Roll it into IRA with brokerage firm like Charles Schwab. Hold it in cash until a market correction and then invest in diversified list of ETFs. Schwab has some tool like their intelligent portfolio that you can use for free.

could also roll it into self directed IRA and invest it in real estate....but I like the diversification of having some money in the stock market.

My advice is clearly define your objectives and then base your decisions on them.  In my opinion, Right now they do not seem aligned, but maybe I am not seeing the entire picture.

If your objective is free up money and create more flexibility why maintain the same payment schedule?  I would would pay the minimum.  Equity in your property residence is dead money.  Did you consider a cash out refi?  

Bi weekly payment plans are really marketing trick to get you make a couple extra payments per year and pay down principal faster.  

Back to your objective...is it free up cask and create flexibility or to pay off your primary residence?