All Forum Posts by: Mike Terry

I don’t care if a poster is offering a service or product (for money) and provides an answer in a forum IF (1) he answers the question honestly (2) he answers only those questions he’s qualified to answer (3) the answer isn’t always to purchase his offering and (4) he takes the time to be a participant, not just a “bot” pushing his offering.  Oh, yeah, he also identifies his “bias” as full disclosure.

The biggest “annoyances” to me are

1- people with 1-3 posts aggressively supporting some guru and attacking people posting negative experiences with said guru

2- people pushing their offering only and not engaging in any other discussions

3- people participating in forums with a “hidden” agenda or undisclosed bias.

4- people asking simple questions the answers to which can be easily obtained with a Google search that they’re too lazy to work

5- salespeople that disguise their product to look like something else, fudge the "numbers" to show an inaccurate comparative return, name the offering "infinity (something) and claim it eliminates taxes, provides liquidity, replaces your banking institution, and creates a "wealth cycle" in a formula used by from Rockefeller to Musk. And all you've got to do is get a HELOC and pay all your expenses from the HELOC account rather than your checking account.
 

@Mike Terry Yeah, isn't this all about making money?  Now 75% of the posts here are all "up-sell" telling newbies asking questions to just "keep going."  I feel sorry for some of the OP asking questions and then, apparently, getting pummeled with messages with people trying to sell them something (sigh).

Finally got my headshot uploaded so I no longer have to lurk around the forums! XD

What are your thoughts on Starting Small (Cashflow) vs Going Big (Equity)?

Since I will invest in the Augusta, GA, I'm trying to figure out what strategy to take for the next 3-5 years. Here's the facts:
- I'm pre-approved for $330K but I can push it to $450K if I really need
- $10K-$20K Saved for down payment. $10K Saved for renovations
- Saving $800-$1400 every month
- I have access to the VA loan

(*preferred) Strategy #1: $100K-$200K purchase. ~$1000 Mortgage. Rent for ~$1000. Rinse/repeat once I can ReFi for 75% ARV. 1031 in 5 years.
Strategy #2: Buy a SFH in a subdivision for $300K+, waiting until I have enough cash/equity and buy again. HODL.

Here are my pros and cons for each:

### $100K-200K ### <-- More Active Investment
Pros
- Higher Price to Rent Ratio
- Fast turnaround to purchasing next property (6 month before ReFi)
- Value Add repairs can improve house value a lot
- 3-4+ purchases in 5 years = More Learning Opportunities/Networking

Cons
- Higher Risk of Bad Tenant
- Maintenance Repairs
- Lemon Purchases

### $300K+ ### <-- More Passive Investment
Pros
- More equity to draw from down the road
- Good Neighborhood
- Family Tenants are safer

Cons
- Higher Operational expenses (Taxes, Insurance)
- HOA Limitations
- Typically recent builds/renovations so not much room for Rehab
- 1-2 purchases in 5 years = Fewer Learning Opportunities

I know that there is no one solution. Also, specific advice depends on me providing more details. But I always like to hear more new perspectives! So hit me with everything you've got!

So I was curious and did listen to the podcast where this was mentioned. I believe he made his recommendation under the assumption that the individual with 1.5MM in retirement accounts would wait until the age of 59.5 so that there would not be a 10% penalty in withdrawing from the account. That being said, there would still be income tax liabilities due to withdrawing from the retirement account after 59.5, and a lump sum withdrawal like that would probably lead to being taxed at the highest marginal tax bracket due to it being 1.5MM (this was not mentioned in the recommendations). Also, I do find it interesting how no mention is made to the fact that that retirement account grew to 1.5MM over time probably due to stock appreciation where the individual did not have to touch a thing and probably averaged a healthy, tax-deferred return over decades.

I do agree that the podcast has turned a lot more salesy/pitchy in recent times. That being said, I think it is up to the listener/forum user to be able to critically think about the content they are consuming. Almost every content creator on social media looks to advertise their own brand and products, but that doesn't mean their content is inherently bad. Just have to be able to glean a little bit of benefit from each content source, including BiggerPockets. For example, just because most investors who have been successful on BP did so through Real Estate Investing doesn't mean investing in a 401k or IRA is bad because they said it is. Likewise, investing in a 401k/IRA is probably not the end all be all either.

 The guy sounds like a moron in terms of smart retirement suggestions. Don't listen to him.. It's a good way to go bankrupt and have a really large tax bill.

@Mike Terry

OK I'm curious

'I am in the middle of planning my own exit from W2 employment'

cool - to do real estate?  to do something else?

'I am agonizing over finding qualified and unbiased counsel on planning'

well, it's not going to be on a podcast =)

i took a break from W2 world and one of my biggest struggles was health insurance.  i had questions about the marketplace that not even my CPA could answer.

Essentially the site is a glorified reddit site as it stands now. Lots of ads, really basic questions that can be answered in a simple online search (how to setup a LLC in X as an example...), and self promotion.

What BP has turned into is what most online media is, a "what sells". For example they put out a post yesterday looking for people on the rookie youtube videos. I asked the question (since we are heading towards trouble times), what about experienced investors? Guess what response was?

Why? My assumption is they are chasing people who got rich quick so they can sell the story. 

Quality of the site has diminished significantly. 

I have never listened to David Greene so cant comment on it.. I think I was one of the last pod cast with Mr. Dorkin and Mr. Turner.. We were allowed to leave our contact info.. and for sure the pod cast can leap someones career by a lot..

However if its a pitch fest for the those running the podcast then well I agree that would be a little weird unless its their own pod cast not a BP company pod cast.

However its a plum gig for whoever gets it.. One just needs to look at Mr. Turner and the success he has had with ODC and I am fairly certain that being the face/beard of BP for all those years has helped him incredibly with raising capital for his funds.   And really nothing wrong with that one just hopes the funds are successful etc.

We do also have to remember this is entertainment. 

It's just advertising at it's core. It's a REI site and it's going to be pushed at any expense.

I mean ****, you don't see much better on the forums. There's threads daily about the nonsensical things people do to be a "REI" at the expense of their actual stress, daily lives, and families well being. There's turnkey providers with predatory 2-year balloon options on houses, one's with 50 1-3 post people show up to support them. Have you dealt with agents on this forum? Horrible and slimy, for the most part. It's just the core of this place, you need to filter through the ******** to really see the best of it. There are great people here and great sources, though.