All Forum Posts by: Craig Curelop

@Bradford G. - Before you go and spend $15,000 on anything. Why don't you take a few months and attend a few of the BiggerPockets webinars hosted by Brandon, listen to some of the podcasts, and read a few of the recommended books. I bet you'll learn just as much (if not more) for about 1% of the cost. 

There are hundreds of thousands of people in this BiggerPockets community who are very successful at real estate investing and are willing to provide you with the same information as these guys, but for free. 

@Princeton Brooks - It depends on what the interest rate on your current debt is and how much you currently have. If you have a reasonable amount of debt (less than $100k), you could probably purchase real estate. Here is how I look at it from an interest rate perspective: 

If your interest rate is:

Less than 4% - make the minimum payments and keep the debt outstanding. 

Between 4% and 7%: It's up to your risk profile and whether you think you can make a better return in real estate. 

Greater than 7%: Pay it off 

Greater than 10%: EMERGENCY DEBT! Pay this off immediately. 

I hope this is helpful!  

Nice! I'll be there! 

@William Kuczmera - I have been toying with this idea myself. I think the question that bases the shape of this argument is, how old are you? 

If you are in your 20s, it may make a whole lot of sense to cash out the 401k. If you in your 30s or 40s, you'll have a decision to make, and if you're in your 50s, you should not take it out.

I made a pretty simple spreadsheet calculating this out. Now, I'm almost 25 years old and I've got a decent 401k for someone my age (thanks to a company match).

If I were to take it out on my 25th birthday and take the taxes and penalty (48% of my actual amount), I would need to earn a ~7.5% annual return over the next 35 years to break-even on my 401k that would earn an average of 7% over the same time frame. 

Given that a real estate investment will have the 4 wealth generators working for me, there is a high likelihood I can achieve a 7.5% annual return over the next 35 years. For that reason, it probably makes sense for me to take it out. 

Let me know if you'd like me to share the spreadsheet. It's kind of just thrown together, but happy to share. 

@Josh Hawkins - Denver is an extremely competitive market to get into right now. Especially if you don't have capital or experience. There are people with a whole lot of capital and a whole lot of experience flipping and wholesaling in Denver. 

If you have no option but to move to Denver, let me know when you get here. We can sit down for a coffee and I can tell you some of the people that I recommend you meet. 

Keep reading and keep listening to the podcasts! There is no such thing as knowing too much. 

@Nicole A. - Sorry, I may have misspoken.  I didn't mean to say you "need" to provide a shuttle. I am thinking about for the older people in the community (i.e. 70+) who have frequent doctor appointments and all of that stuff. 

@Luke Albert - 55+ communities are becoming more and more attractive in my eyes. Here are my reasons:

1. Baby Boomers are getting older. There are going to be lots of them so vacancies should be low. 

2. Typically 55+ year olds are responsible and have money to pay rent. 

3. 55+ year olds will likely not be destructive to the property. 

Here are a few of the cons:

1. More health issues. You will need to be sure you provide a shuttle service to their doctor's appointments, etc. 

2. Higher risk of injury on your property. More likely they will fall down the stairs, etc. 

3. They might try to take advantage of you because they may think you're, "young and stupid." 

Depending on the location, there is a high probability that I would invest in a retirement home. However, I do not have any interest in doing syndications and I can't afford that myself so I'd likely pass due to lack of liquidity not due to the characteristics of a retirement home. 

@Dominique Irby - Welcome aboard my man! Glad you followed up and got onto BiggerPockets. Keep active here in the forums and be sure to tune in to the webinars, listen to the podcasts, read the blog/books, and you'll have a good feel for real estate in no time. 

@Matt Finneseth - I live in Denver about 5 blocks from the largest park and 1.5 to 2 miles from downtown. 

I started AirBnbing my place in mid-July and I have had probably 10-15 vacant nights in 4 months. It can be extremely lucrative. In the summer months, I was making $1,500 a month and that's in a shared apartment. Now, it is slowing down and I'm down to ~$1,000 per month. I'm expecting that to dip to ~$800 throughout the months of January through March. 

If I were to rent this bedroom out normally, I could probably get between $700-$900 for it. So in the summer months I'm making double and even in the winter months, I will be making comparable prices. 

It is a little bit more work. I do a hefty amount of sheet and towel cleaning, but if you don't want to clean sheets and towels, then you can always hire the cleaning out.  

I would definitely talk to some other AirBnbers in your area. I know very little about Fargo, ND and as to whether there are attractions there where people need sleeping accommodations. 

@Brad E. - I typically say 600 for my tenants. But that's only one part of the equation. If the tenants have good jobs that meet the income requirements, a clear criminal background, good recommendations from employers/previous landlords, and I get a good feeling when meeting them. I'd likely ask them about why their credit score was so low. 

It could be something silly that happened recently that they don't know about or are in disputes with. They also could have just started building credit. Amongst other reasons.