All Forum Posts by: Brent Fisher

Quote from @Elijah Rosett:

@Brent Fisher, I think @Seth Young is completely right about investing out of state.  

Also are you still up in Logan? I went to USU myself for their aviation program!

I'm not in Logan anymore, I'm in Cottonwood Heights. I can't see how folks set up their trusted teams out of state. I keep on hearing about folks doing that, but wow.
The other nut I'm trying to crack is to  learn how to BRRRR, especially how to pick up properties with that 25% margin in there that includes the renovation as well. I've been subscribing to Utah Wholesalers, but nothing I've see keeps much margin to the ARV after renovations. Maybe the market is just too hot! 

Quote from @Dan Schwartz:

@Brent Fisher so much to unpack here.  I've got NYU stories, USU stories, Oregon State stories......  Financially, I haven't thought of any reasonable way to crack your dilemma, though I've tried.  Professionally, your daughter has a long, tough road ahead of her.  I hope she understands that.  If she makes the move to NYC, her peers are going to matter more than her teachers.  She needs to be with the people who are going to "make it," and be one of those people who are going to "make it."  Opportunity won't show up with the diploma.  Has she been designing sets at high school?  Community youth theater?  Has she scoured LinkedIn for students or graduates of the program and messaged them to ask them questions?  Has she cross-checked what she can find at ibdb to see if they have professional credits?  Lots of hard research there beyond who NYU might put her in touch with.  Has she mapped the paths of current set designers on Broadway or in the West End?  Their bios are all in the Playbills.  Her path won't be the same as theirs, but it can be illustrative.  Has she researched what set/scenic design jobs are available across the country and what skills they are asking for?  Has she participated in summer programs and, whether she has or hasn't, will she in the future?  Is she prepared to be a nomad through the early parts of her career, at a minimum?  I could go on and on.  I won't.  Bottom line advice is that she can start this journey at a disadvantage (like $200K in loans), but she can't start it with any sort of passivity.  She's not going to college to learn how to be a set designer; she's going to advance her career as a set designer.  There's a big difference.  Good luck to her!

 Thanks Dan, I'll read this through with her. She beats to her own drummer. She has been designing sets in high school and working at Hale center part time. 

she's a little touchy about finances when i want to explore it with her. But i think she'd read this without me there in person.

Makes sense. Where does one find such a team? How does one build such a team?

How would you feel comfortable with investing in properties outside of the market that you know and are comfortable with? Sometimes, even in Utah, I'm afraid that I'll buy properties in areas that aren't a good investment, because I see a price tag that draws me in.

I'm somewhat reluctant to start investing into markets and areas that I'm not familiar with. Do you do that?

Originally posted by @Seth Young:

Truly inspiring post! I love to hear the reasoning behind other's passion for investing. Do you want stay in your own market or invest out of state? Best of luck in all your investing! 

Good question Seth, I'm considering both, but, since my first daughter just moved to Corvallis Oregon, we have put an offer on a place in Corvallis, and looked at another one today.

Thank you for your reply @William Hochstedler.

That is about right, except that I'm saying that I have as much as $250k. The 250K doesn't have to make a return other than the interest only debt service. 

If we put in 275K, and the property increases by 100K in 4 years, that's 2.5% annual appreciation on the home, and the ROI for the $275K would be 36% over the 4 years, or around 9%/year.

That would provide her with a very small roi indeed. I don't think that would be worth it.

That's slightly different than what I was meaning to communicate.

My thought is that the initial investment earns 40% per year off of real estate appreciating 10%/year. The leveraged total ROI in the first year, with appreciation and rental income, minus all expenses is around 36% in the first year, going up slightly every year with compounding interest and increasing rents.

With all of that said, I agree with you. She can't be considering something in the Bronx. I'm gonna adjust my sights to a market that I know better. Say Utah, e.g.

BTW, I noticed your profile mentions Logan Utah. My wife and I are True Aggies! We both are USU alumni and named our oldest child LOGAN. 

Thank you for responding. It is a possibility that the investment property could fail. I've had several that have, but on the whole, they've done well.

I've talked to her about the CC idea. I personally love that idea. She's quite enamored with the idea of becoming a stage designer that works on Broadway or the West End (of London). NYU Theater does 6 shows a year, and she feels that would give her the learning and experience needed to land opportunity when she finishes.

She's also very aware that $200K is a tremendous amount of debt, that she isn't looking forward too.

Her older brother used the initial $25K we had for him along with scholarships to attend U of U, and also became a resident assistant. He is finishing college this year with nearly $25K in the bank. An enviable and rare position, to be sure.

She is weighing her options. She is hoping for scholarships as well, and has applied for them. Utah has great community colleges. Salt Lake Community College, e.g. has a theatre program, but she's really quite interested to get far from Utah as she's on the LGBTQ+ spectrum and Utah isn't very friendly to her politically, socially, etc.

I have read https://www.biggerpockets.com/... and thought she could consider a 4 plex in the Bronx, e.g., but maybe the extra stress would be just too much for a Freshman, in a new city, trying to get college done, and worry about owning property.

My daughter wants to go to NYU. It's $55K/year (oh my). We saved up $25K for college, so we are short! However, I have a $250K of equity in my house in terms of a HELOC that has a 10 year deferred payment option at 3%. I'm looking to buy an investment property. I'm wondering if she could use the cash as an equity partnership in a deal that would allow her investment to gain nearly 40%/year until she graduates to help pay the loans that will be due. After 4 years, that initial investment, growing on this leverage 40% return would be nearly $100K

That would be quite a chunk against her $200K loans. 3 more years and she can pay off the whole thing, but she'd have to figure out how to pay her $2600/month student loans in the mean time.

Also, since it wouldn't be very liquid, I'm not sure how I could cash her out when she needs the money, besides selling the house at that point.

@Charlie MacPherson, I like your mission statement.  Perhaps the last few sentences are too guru-speak.  I do want to say something that tells you that we aren't looking to just create another job, but, rather begin to create true wealth through continuously defined business processes, systems and people.

Maybe I'll say just that.

I've been reading The e-myth.  So many recommendations for it from here.  To me, I can't see how I'd want to build a cluster of just more work that I can't get to work for itself when I go on vacation.

But, I'm definitely wanting to reduce it down to something someone would want to read!

@Account Closed, it seems you are right.  I look at it, and although I agree with it, even I feel tired when I think about reading it.  

So, how about....  actually, I can't see any reason to add anything more than Spencer wrote.  So, thanks Spencer!

Kind Regards,

Brent