All Forum Posts by: Benjamin Seibert

@Carlos Segura congratulations on the completed deal!

Hi @Demetre Dyse. Vacant plots of land are evaluated using the comp method (find comparable properties - in nearby location and size to compare the value to). The plot of land will need to be perc tested as well.

I am reviewing my current insurance and was potentially looking at switching policies (to a better policy which covers more). I was wondering if there were any recommendations on things to make sure are included in my policy?

Also, what is everyone's recommendation/viewpoint on an umbrella policy? Anything to keep an eye on or make sure is included in this?

Just want to make sure I'm properly covered up front. Thanks in advance!

Congrats on the successful deal @Ian Holtson! Definitely sounds like you've learned a lot and made some great headway in RE investing.

@Jarod McGovern there are a lot of great resources. RE books : Millionaire RE Investor, Long Distance RE investing (David Greene - just mentioned). Stock Market Investing Books - One Up on Wall Street (Peter Lynch), A Random Walk Down Wall Street. Morningstar is also a great stock tool (for pricing and data). 

I don't have a true "method." I just believe in being well diversified. Feel free to PM if you have any further questions.

@Jarod McGovern it depends on your goals. I would lean more towards maxing the Roth IRA out (investing the first $10k in index funds and the rest on individual stocks & some foreign markets - you're young so you can take the risk). The Roth IRA gives you better tax benefits than a brokerage. If you want to do real estate, I would use the funds you plan on putting into the brokerage for RE (or just keep the brokerage at a smaller amount - maybe $10k and the rest RE). The brokerage account just doesn't give you as many advantages as RE does (tax benefits, loss write offs, etc...).

In terms of markets, that is up to you. I am an advocate for having your first investment be nearby so you can learn and monitor progress (most first deals end up having one issue or another since you're still learning). After getting comfortable with the process then it could be great to invest out of state. There are other people like @David Greene who wrote the book on out of state RE investing (I recommend that book). So take my advice with a grain of salt. Anything can be done with proper preparation.

Hey @Jarod McGovern that's a great question. I was in your shoes a few years ago. I always recommend a well balanced and diversified portfolio. I would continue to max out your Roth IRA and use the rest of the saved funds for real estate investing (after saving up 3-6 months of reserves). Building your plan this early on will set you on a great path. If you end up at the age of 22 with $15k in Roth IRA, $6k in brokerage and $20k-$30k to use for real estate you will be in a great spot.

@Scott Stephens congrats on finishing up your first deal!

@Anthony J Ruma welcome to BP! There is a ton of useful information and other resources on the site.Best of luck with your investing journey!

@Aaron A Bitto there isn't really a rule of thumb for this. It depends on the property and the potential room for error in the deal. If there is a lot of required rehab and the property is older, then build in more contingency. If the property is new and doesn't need much work, then you may not need as much (this is just for the rehab side). You still may need contingency for holding costs and tenant turnover. I would just watch one of @Brandon Turner's webinars on how to analyze real estate deals. He shows you the proper way to bake in enough contingency and analyze a deal. Goodluck!