All Forum Posts by: Dave G.

@Taylor FerrellSounds like a good property to research for delinquent loan or prop tax status...maybe a distressed purchase for you. 

@Scott MacI'd go with a sleeveless flannel shirt and dirty camo shorts!

@Scott V.

Some random comments to this thread:

• 110% agree with @Jay Hinrichs that you solely focus on your practice at this point. How many years did you just invest in education to become a dentist? I believe you should concentrate on becoming a successful, experienced dentist before learning another trade (successful, autonomous investing). Not sure how that would limit you from buying a ski home in your mid-thirties (unless you intend to pay cash?).
• Reference the Millionaire Next Door, my take from that book was not to have to live like a hermit and cut coupons until you become rich at 65. Does that work? Yes, but it does not have to be that extreme. My take was to focus on not wasting money on the artifacts that traditional society (and American marketing) considers a wealthy person should own and that you should optimize your financial resources to what brings you true happiness. Separate utility from excess & bling and stop trying to impress people that don't matter (like strangers on the freeway looking at your newly-leased $700/month Mercedes - foolish!). 
• A life-long friend of mine's dad has been an oral surgeon for 40 years. He focused on his practice early and became a highly compensated specialist by about his 10th year in practice. One time (in the 80s) I went to my friend's house and there was a new Ferrari in the garage. My friend humbly exclaimed that his dad had more money than he knew what to do with. More to the point on this though, was that his dad made some very shrewd investments including buying the building he operated his practice in. He managed it himself too. There were some obvious synergies with this as he was at the property everyday since he worked there himself, and most tenants (~15 suites) he knew personally and professionally (dentists & doctors). He purchased and managed at least one other successful commercial property that I was aware of. He also made some very poor investments (stereotypical bad Dr moves) such as a spec-home flop, land purchases out of state and scammed by a con-artist advisor for about a $1M (guy went to jail, not sure about $$ recovery). He did not perform appropriate due-diligence on these and/or maybe fell into the high-income Dr. mindset of "money is an easily renewable resource". Another source you may consider for learning about investing is https://www.physicianonfire.com/.
• My wife and I are also high-earning professionals. We had lots of fun in our 30s & 40s with lots of toys and travel. We own a fun vacation home now we go to 2x/month. We vacation internationally at least once/year now (more with work). We have fun "despite" still working. We could probably retire just fine now, but we enjoy our jobs still and will work for another few years at least (to mid-fifties). 
• My investment style is fairly conservative (multiple buy/hold rentals) balanced with low-cost index ETFs in our 401ks and brokerage account. I'm testing the waters with crowd funding now too, trying to find an alternate place to deploy idle capital in what I consider to be an expensive real estate and stock market. I continually seek to balance the work/time required to manage our investments with my 50+ hour workweek, recognizing what the highest & best use of my time is. Recommend others to do the same.
• Recommend starting small and building your knowledge. Maybe I'm just not that smart or hard-working, but I can't imagine diving into a Multi successfully out of the gate. There are many BP podcasts of people going from 0 to 100 properties in a year or two. I think these are outliers, not common realty....my opinion. Building wealth within reasonable risk takes time. Long, slow and steady is boring. No one wants to hear about the overnight success that took 10 years. That's why the guru's make money. You can still get your ski cabin, have lots of fun in your 30s and beyond, while building significant wealth. I just think someone should not expect to do it in 5 years.
• You're clearly a smart dude asking these questions, stimulating critical-thinking discussions. You have a lot of runway in front of you and will do very well I'm sure.

Best of luck,
Dave

@Mitch Brunette

@Mitch BrunetteSavor the moment.....you spending your time thinking about this "problem".

Seriously, if capex is separate from this I would take it as profit. And be assured it swings both ways going forward....

LTV 85% at prime seems good to me. I've used a HELOC on my primary residence numerous times to support cash offers/acquisition without messing with more cumbersome financing or partners. I am a proponent of this and highly recommend it.

It's early for me, but my Peerstreet experience so far is questionable. Invested in 3 loans in Dec 2018 and 2 more in Jan 2019. 2 of the Dec loans are already delinquent and this is just 45 days after origination! How does that happen right out of the gate when you have borrowers with credit ratings of ~700 and 25% plus equity?? 

I only put in $1000*5 positions to test the waters and am glad I did. Unless the water warms up some, I see a short and unpleasant relationship with Peerstreet. 

What measures are you taking to protect your situation from the anticipated/forecasted/feared (you choose) economic downturn / market adjustment? 

Sorry, couldn't resist....

Who shot Kennedy??

@Ronald Rohde 

Point taken. Would I have saved money paying for a legal review of the contract? Very probably, but not significantly as the slimy PM only had 3 of my properties under management and the deposits did not add up to much. Either way, I'm sure the lawyer would have pointed out the buried language and additional risks. I probably would have learned a thing or two to look out for.

I currently have 6 properties and it's hard with that low quantity to pay for some services vs if I had 20+ properties. Nonetheless, perhaps I need to reconsider going forward a legal review gate for future agreements.

@Darron Washington thanks. That's about the only other idea I had. Do you by chance have a contractor recommendation for this?