All Forum Posts by: Edmund Ricker

Hi @Rolanda Eldridge,

Thanks for the comments and advice.  I think I am going to take the course and then decide whether I want the license or not.

My mains reason for wanting my license are to be able to look at property whenever I choose and to control my deals.

Thanks,

Ed

Its hard to give truly sound advice without knowing your full situation, so I will speak in generalities.

In general, paying off a credit card is instant savings or instant return.  If you have a 15% interest rate on a 6k balance your monthly interest expense is approximately $75 per month. So in general, yes I would withdraw money from the stock market fund and payoff the credit card.  This assumes that these are not retirement funds that you would incur penalties and taxes to access.

HOWEVER, I would make a detailed budget and identify where I could squeeze extra money out of your cash flow from employment to take down this debt first.  Also, paying the credit card off is of no use if you don't control your spending.  Otherwise, you zap your investment account to pay off the debt and then find yourself in the same position down the road.

Another thing I would try to do is generate more income.  Either a side job or more hours at your current gig, if possible.  I am a true believer that you can't cut your way to prosperity.

As far as the car goes, most people finance cars and it is a horrible idea.  They depreciate and eventually fall apart.  Look for an inexpensive used car that will fit your needs or as @Amit Kal suggested, ditch the car if possible.  If you must have a car, try to pay cash or finance for a low interest rate.  I would not necessarily sell stocks to fund this purchase.

Hope this helps.

Ed

@Steven C. Suarez,

Providing for ones family is the ultimate goal and if your current employer is throwing overtime at you, I would suggest you take it, at least in the short term. 

I would set some goals if you haven't already.  Also, consider setting up a separate bank account and diverting 10% of those overtime proceeds into it.  Think of it as your "seed" money for your farming operation.  As others have demonstrated, there are a variety of ways to get started with low and no money down, but the old saying "Cash is King," is true in my opinion.

As @Thomas S., said, "I do not believe investing and building wealth is a race."  

Lastly, don't feel bad about busting your butt and collecting overtime while its available.  Deals come and go.  Save up some funds and pay down your debts.  Live below your means if possible.  All of these simple things will give you a great foundation to launch from. In the meantime, use the internet as much as possible to look at properties and familiarize yourself with your target market.

Hope this helps.

Ed

@Walter Correia

@Jamie Engledow is correct that USUALLY a married couple is better off to file joint rather than separately.  There are some instances where it makes sense to file MFS.

The big disadvantage to MFS is that it disqualifies you from claiming some of the major tax credits and deductions available to those filing jointly.

I would recommend you consult a professional to help you sort it out.

Hope that helps.

Ed

@Lucas LeBlanc

Congrats on shedding the 9-5 and starting your REI career. Dream BIG! I would caution you to consult a tax advisor, either CPA or EA, before getting too far down the road. You mentioned starting an LLC for flips as well as BRRR, and while LLC's are all the rage, in this situation it may not be your best option. You may wish to consider an S-corp for a business that generates short term gains/ordinary income. An LLC gives you asset protection but does nothing for your tax situation.

I don't know your individual circumstances so I cannot provide you with exact advice, only suggestions. I would highly recommend you interview a few CPA's or EA's and explain your goals and current situation. Check with other investors in your area or a REIA group, if available, for referrals.

I hope this helps.

Ed

@Brent Langlois

Let me begin this post by saying I am biased.  I am a paid tax preparer and I do earn some of my living from this business.  That being said, I have worked for a big chain tax preparer and I have worked for a small town CPA.  There is absolutely no comparison.  A big chain tax preparer will do just that... prepare your taxes.  A good CPA will prepare your taxes but also give you advice that over the long term should far outweigh the cost.

I would suggest you interview a couple CPA's/EA's in your area.  Tell them what your goals are and explain your current situation.  Then ask them how they can add value to your situation beyond simply preparing your tax return.

Hope that helps.

Ed

Thanks @Bob Malecki!

I sent you a colleague request so I could PM you.

Thanks also to @Jay Hinrichs and @Darren Eady for sharing your words of wisdom.

@Richard Jahnle,

If your CPA is comfortable with the split that you have now, I would not bother changing it. 

Just double check with your CPA.

Hope that helps.

Ed

@Rebecca Shine

You should deduct based on square footage of the home.  So figure out what % of the square footage you are living in vs. renting and deduct accordingly on Sch A for personal home expenses and schedule E for rental expenses.

Also, I would advise consulting a tax advisor in your area.  It will cost you a little money but they could save you much more in the long run.

Hope that helps.

Ed

Hi Everyone,

I would like to add note investing to my tool box by using my SDIRA.  I am unsure of where to start and am looking for some guidance.  I know there are some books available and some courses.

Does anyone have experience with any courses?  I am not afraid to spend money on a course, but I don't want to be fleeced by one of the "guru's" @Joshua Dorkin and @Brandon Turner always warn about on the BP podcast.