All Forum Posts by: Marko Zlatic

My wife and I are in a similar situation where she is studying to be a Nurse Practitioner, and will incur student debt throughout her education. Part of me just wants to pay it off in full, another part of me wants to purchase more property/stocks.

At the end of the day, I think it would be smart as a first time landlord to go into REI with minimal debt and some reserves in case the deal turns sour.

0 Votes

I can speak from experience, not as a medical professional, but as someone who has worked in commercial real estate and is very close friends with multiple medical professionals (surgeons, doctors, etc.).

Focus on yourself and your practice first
- It sounds like you are enticed by the "idea" of passive income, but have no land-lording experience to understand that this isn't truly a passive business.

Doctors (painting with a broad brush here) aren't known to be good business people or good with their finances
- My theory on this is because they are in school until their 30's living on student loans. When they finally "make it" they feel like they deserve to live an extravagant lifestyle, which they have absolutely earned. However, this is where I've seen SO MANY doctors who can't even finance a Chevy because their debt to income ratio is so high.
- They never learned the discipline it takes to be frugal or develop a "nose" for a good deal because they've been living on student loans until their 30's. Necessity is the mother of invention/creativity...

Lifestyle Inflation / Keeping Up With the (broke) Jones'
- When your other dentist/doctor buddies invite you to the country club, are you going to pay 5 figures a year to become a member there eventually?
- When your other dentist/doctor buddies invite you to their boat, are you going to pay 5-6 figures to buy a boat to join them next summer?
- When your other dentist/doctor buddies ask you to invest in the next hottest *insert random unvetted investment here* are you going to drop 5-6 figures to invest because you're bored with your day job?

Thinking You Are Smarter Than You Are (not accusing you specifically, just speaking in generalities)
- I hate to say it, but every young doctor I know thinks that they are smarter than everyone else in the room. When in reality, they actually have very little street smarts and real world experience due to being in school so long.
- Will you be patient/humble enough to learn on a small deal, and eventually grow into bigger deals?
- "Everyone has a plan until they get punched in the face" -Mike Tyson

I apologize if this came off more negative than I intended (it's hard to gauge due to it being text) but I truly have your best interest in mind. I've seen it happen so many times. Don't be a broke doctor.

Best,

Marko

3 Votes

@Jim K. @Account Closed

Very well said.

0 Votes

Originally posted by @Jim K.:

@Account Closed

This is the first time I've ever seen one of these. Pittsburgh is infested with wholesaler bandit signage of the "WE BUY HOUSES FOR CA$H" variety. My personal favorite is when they use a name to differentiate themselves, like "TERRY BUYS HOUSES" or the evergreen "JIM BUYS HOUSES."

I have an ongoing fantasy that someday when I'm bored I'll get two stacks of signs printed up. One will read "AND GIVES THE BEST H**D," while the other reads "BETTER H**D THAN TERRY." And then I'll do around my target area stapling those up just below existing TERRY BUYS HOUSES and JIM BUYS HOUSES. You know, just to brighten the neighborhood up.

SELLING houses through bandit signage...I know that there is any number of desperate people dragging their shambolic selves around a poor neighborhood looking to score some cash any way they can. That type typically has never actually seen $55,000 in cash all together in one place.

But people with that $55K cash-in-pocket to spend on real estate...I don't know many who would trust a repair estimate by some broke bandit sign goober enough to make that call. I wouldn't think that type would be quick to respond to this kind of guerrilla marketing. As you mentioned, whether or not that house even exists is anyone's guess.

There's just gotta be a better way to troll for cash buyers.

Your posts always crack me up. Love the Midwest sense of humor LOL!

1 Vote

Originally posted by @James Galla:

Originally posted by @Account Closed:

@James Galla ah the classic pro forma I’m holier than thou negative predictable reply.....yawn

Haha ok. I don't think I worded it like that, but if I raised some doubts, that's good. You'll be more careful when looking.

But, if you're looking to be condescending, I'll suggest making it the $10k club - head right on over to South Akron, West Hill, or Sherbondy Hills in Akron, and just dump your $100k into 10 properties. You'll be rich in no time.

I lived in Akron for 4 years (while getting my finance degree from UA) and this comment is hilarious

2 Votes

I wonder how @Ben Leybovich feels about this subject ;)

0 Votes

Fellow Westsider here, welcome!

The BP Bookstore is a great place to start. https://www.biggerpockets.com/store

1 Vote

This number is obviously regional. $1M in the Midwest is different than $1M in Manhattan.

At the end of the day, inflation eats away at purchasing power. You have to make sure that you are outpacing inflation and then some to be able to comfortably live off of your nest egg.

This is known as The 4% Rule or Safe Withdrawal Rate

1 Vote

Congrats! So glad I live in Cleveland where $450k gets you a brand new 3,000sf McMansion.

1 Vote

All Forum Posts by: Marko Zlatic

Marko Zlatic has started 8 posts and replied 81 times.

Post: Newbie from Cleveland, Ohio

Post: Student loans OR Four-Plex? (Dave Ramsey or BP?)

Post: We're told to skip small deals and start big. What about lending?

Post: The $30k rental club.......

Post: New use for bandit signs

Post: The $30k rental club.......

Post: The $30k rental club.......

Post: Cleveland OH (Gordon Square/Ohio City)- New to REI

Post: Millionaire - RICH or Middle Class?

Post: Another Fix & Flip Completed!