All Forum Posts by: Daniel McNulty

@Jason M.

If it were me, I would make paying down that high interest debt the main priority. The guaranteed 10% return is tough to beat. Most importantly, its not uncommon for the first property to be a head ache, a dud, just break even, or even a complete train wreck. 

@Joe Potenza

I dont think you will find any more consensus than @John Blanton provided above, especially without any insight into the property class, location, ect. 

You will also find most folks are as fee conscious as institutional investors. If you layer in mgmt fees with acquisition fees and disposition fees, we will throw a fit if the carry is substantial too. 

Similarly, GP commitments, frequent communications / transparency (arguably more transparency than institutional managers offer) and a verifiable track record will be necessary to name a few. 

"Buy Bitcoin"

Block chain technology may be life changing in the next decade, but bitcoin appears to be the next napster, netscape navigator, etc. It fails almost every test a reasonable people would consider in making an investment. 

Although, it makes for good CNBC banter.

@Kai Sato-Franks

Dave is full of great insights and tips, but purchasing your properties outright is not among them. If you have reached a level of comfort and are no longer focused on growth, then by all means keep that debt snowball rolling. Otherwise, that is not a one size fits all mantra. 

@Michael Aragon

If you are ever raising money from passive equity partners, you should anticipate needing to formalize the offering with a SEC attorney. 

@Megan Naioti

The most common problem is that at scale, you will only be able to acquire 10 properties in your own name through traditional lending. If you each held the properties separately, you would be able to approach 20.

That being said, acquiring them separately may present a less attractive debt to income ratio as you look for financing, let alone there are portfolio lenders that will rope all your properties together if you get to that point later on.

If one of you makes significantly more than the other, you may have to buy them together to qualify for financing.

@Nicholas Rado

Definitely always contribute enough to take the company match, its free money.

Most employer plans have Roth 401k options, so its worth looking into. Its a potentially easier and better option than a Roth IRA (larger limits and plan loans are available)

I would not stress out as much about your FICO strategy. Debt to Income ratios play a much larger role. I personally have a Lowe's card, but thats because my wife spends more than a small country's GDP there. Any card will do in reality, just be sure to pay it off monthly.

You are going to do great if you keep working towards your goals!

@Ryan Spearman

Gold is a decent store of value over many years and is a hedge against inflation. However it is more volatile than what I would consider keeping my reserves in. Further, gold has hit multiple all time highs and continues to be more prone to a pull back than continued appreciation in the short term.

I wont contest is value to diversify and hedge inflation, but it is not a great alternative for cash reserves in my opinion.

@Latasha Y. Lane

Fundrise is going through some struggles last I checked, so I would pass on that one. I am not familiar with Streitwise, so I won't comment.

Reits are a fine option with limited money to put down. The biggest downside is that they make it so easy, you will not be forced to learn anything about real estate unless you want to. If it would be helpful, I would be happy to share some of the Reits we like offline. Just drop me a message and we can chat.

I also use US Home Inspect. They have been great on multiple occasions.