All Forum Posts by: Troy Forney

Marty, if I can justify it great. If not what's 10 more percent. Who cares. Small price to pay for freedom.

 I asked the same question a couple weeks ago.  I guess I worded it differently because your answer are better.  I don't intend on paying it back.  I am tired of the ups and downs and all I have averaged over the past 5 years is 6.8% at Vanguard with a 90/10 portfolio.  I obsess over it and watch it.  I know that's the nature of the beast, but frankly its stress I don't want.  The way I see it, I am going to pay taxes on it at some point.  Now it will be 22 to 24%.  I am averaging 15% return on my rental income alone. With forced appreciation equity I will be ahead. Even without the equity, I take a hit of 7% return the first year.  Then its all positive.  I know Real Estate and am good at it.  I understand it.  Yes, I have a good understanding of mutual funds, the stock market, etc... but I hate it!  My wife and I are actively looking for deals, but everyone is still stuck in the market we had 3 months ago.   I have decided its worth it. 

I see you work with Keller Williams. I like Linda Mckissocks podcast. Very good investment model.

I hate to say say it but it takes money to make money. Unless you are really really good at something. Save way more than you spend and invest. Invest in what you know.  If you don't know it, don't invest until you have a good understanding than at some point you have to get in and learn boots on the ground.  I'm talking about real estate of course.  Many would argue that starting a business is the real way wealth.

Hi Erin and welcome. I once paid a personal finance advisor a lot of money to answer this question. His reply was basically have a plan. Buy as many as u can as quickly as you can then pay them off, for example: I have been buying houses all cash and repairing with all cash.  Then do a new mortgage and get some money back. So it would be like a brrrr, but I like more cash flow so I have a lower ltv about 50%.  So eventually you run out of money. Then have to save for a bit. Use the flippers rule 70% when u buy.  So you end up with good cash flow about 250 a month per property and a good equity position. If it's done properly you should have roughly 40 to 50k equity in each property and 3500 cash flow per property per year. So 10 houses gets you half way just uses basic numbers. plus equity and if it takes 10 years, ur cash flow added up, tax savings equity pay down, etc... Ur getting pretty close. My method is not the fastest but that's my comfort level of risk. In ur area u should be able to accomplish this no problem. Great cash flow in Midwest. 

Those were the days.  Our KMART just went out of business.  Nice job on seller financing.

Guess I should have mentioned I bout it 10% below market value and no gun required.  If my wife and I won't live there if we had to we won't buy it.  

The last property we bought, we bought strictly for cash flow. It was $45,000. with a section 8 tenant in it rent is $800. a month. It had a remodeled kitchen and bathroom, everything else was average condition. The market is a C area. Prices fluctuate with the market cycles, but generally stay pretty stable. We put 25% down so that is the only equity, but the cash flow is great. I kind of went off what Clayton Morris preaches. Low price houses (C market), don't care too much about appreciation. I think he rehabs them first usually. My other properties have been rehabbed after purchase and are more like 50% LTV, but I have more cash in them. It just seems so simple. $12,600. out of pocket almost a 2% property. Eventually, 5 to 10 years it will need major items replaced. My question is anyone else having success this type of investing? I just don't see too many other examples of this method the way Clayton explains it. Or is he just trying to sell his product?

Thank you all for the comments and suggestions. The self directed IRA has been on my mind for years. I have even went as far as calling an advisor and discussing it. He ended up giving me too much information and complicated everything. I know some basics, but have many questions and my accountants of 15 years frowned upon it also. He said he doesn't really understand it. I don't really want to leave my accountant as he does a great job with my appraisal business and real estate. I can't believe no hard core real estate investors saying get out of mutual funds. Maybe I have been listening to too much YouTube!

Hey everyone. As most of you probably know they are allowing you to take from your IRA up to 100K and pay it back over 3 years with no 10% penalty. If you don't pay it back, you just pay taxes on it. Of course I am thinking hmm. Many options... We have currently 6 successful rental properties. Good cash flow, 50% LTV, etc.. I have been a full time appraiser for 20 years and investing for about 15 years. I am really thinking just go 100% with the rentals and the hell with the stock market. Also hoping to start seeing some deals again in the not so distant future. I don't plan to pay the money back so 22 to 24% taxes on that. Averaging 15% return just on the rents. Keep it diversified stocks and rentals or go all in with real estate. Any advise would be appreciated.