All Forum Posts by: Troy Layne Pierce

@Matt "Roar" Gardner nice work man! That is very similar to how we structured our partnership STRs. I also made my first REI with $25k but it was into an apartment syndication turned flip. Maybe all these similarities mean I need to be prepared for an RV park in the near future 😆! Will be interested to see how yours turns out and wishing all the best

@Thomas Rutkowski I see what you are saying now. Many thanks on helping me understand this! Maybe I'll look into this as an option for funding real estate deals with my Roth IRA savings.

@Thomas Rutkowski I think I’m tracking everything you said except the 8% you mention. Are you saying you can take about 8% a year of the principle balance in loans while still being able to preserve the actual principle? Just trying to determine what makes up the 8% math. Thanks for all the help by the way.

@Thomas Rutkowski thank you for explaining. I do believe they guaranteed 5% but I’ll revisit those details with him again. I don’t quite understand what happens once you start taking payouts to live off (I.e. living off your retirement savings as they are intended to be used). Would you borrow against your policy and just not pay it back at that point? Does the interest just accrue until you die at which point they cash in on your policy payout to cover?

@Greg Scott thanks for your input. Sounds like we have similar concerns here. I’ll take a look at that article. I just don’t want to see them make a bad choice at the end of a life of hard work to get where they are now. The only reason they are even considering it is because of an older family member insurance agent that we all trust who thinks it is a good idea for them. He uses it himself. He would never willfully lead them wrong. I just want to do some outside due diligence for them on my own.

I should also clarify that the firm says this is not the same as infinite banking, but often gets confused for it.

Hey all. My father in law is about to retire this year. He invests in real

Estate with me and has a 401k from a W2 job he worked for his entire career. Recently he has come across a law firm called fortune firm in Nevada. They offer investment grade insurance policies using whole term life insurance. For several thousand dollars they offer to move his 401k into this policy that involves setting up 2 LLCs and will allow him to borrow against his policy at 4% interest while earning a guaranteed 5% on the principle amount in the policy. The money is mostly non taxable, offers tax free distribution to heirs upon death, and has a $4 million payout for the life insurance portion of this. My opinion is it all seems too good to be true, but I hate to be a naysayer just because I don’t fully understand it. There has to be a catch right? I understand that for someone younger like me it is probably better to just have term life insurance and invest the rest on my own for a much better return, but what about for someone like him at retirement age that doesn’t need a large rerun anymore and just wants security and tax sheltering? Seems like a great option but again what is the catch here?? Any honest feedback on this would be greatly appreciated. I don’t want them making a decision they may regret later on. Thank you all

@April Clark hey April. We are doing this as well.

1. If you plan to put this in your name using a second home loan (what we did), you cannot have a property manager or long term lease agreement with anyone as I have been told. I’d highly recommend self managing anyway, as it can be highly automated once set up and running with the right software and systems in place. Tools like Smartbnb and Pricelabs combined with AirBnB and VRBO are a game changer.

2. Make certain your area/ property has no short term rental restrictions that are show stoppers as well as look at the city/county’s long term outlook on STRs. You don’t want them putting you out of business in a year with some new ordnance that’s in the works. I’d just call the county or city clerk and start asking questions about STRs and tell them your intent.

3. You may have better luck right now looking for portfolio lenders and credit unions for the vacation home loan. There are new restrictions on how many of these loans Fannie and Freddie can hold and it was affected rates and term for those banks that sell all their loans to them.

Best of luck! It’s been exciting so far. We just went live with our first listing last night!

@Kyle Smith thanks for the unbiased input. It's great to hear all perspectives and I could care less about what is a popular opinion. That market is no doubt expensive. Are there other STR alternatives you are considering or are you waiting it out in hopes of a market correction? Anyone else have thoughts on the steep price incline around Gatlinburg? I realize prices are all relative to an area and are driven by demand. Is this area on track with where it should be or was it artificially inflated by 2020?

@Avery Carl hello! I'm on your calendar for the group meeting next Tuesday. Thanks for the great data you've already provided us through BP. Looking forward to talking with you and finding our first STR in the Gatlinburg area!