All Forum Posts by: Don Konipol

Hi everyone,

As a high-income earner, what is the optimal order of funding tax-deferred and tax-advantaged accounts to maximize tax savings? I am considering the following options: contributing to a 401(k), paying down high-interest debt, funding an HSA, and making a backdoor Roth contribution.

Thank you.

Best,

Zeni Kharel

Just a note on one small component of our Advertising efforts.

We do Self Storage.  One of our advertising outreach approaches is Sparefoot, who is a Self storage Consolidator.  When a person does a search for Self Storage in an Area, there are about 18 "channels" by which Sparefoot captures their search and then will direct it to one of the storage locations in a zip code, city or geographic area.  

Depending on a weighted factor Sparefoot will show you as a recommended location for an area, you might even be 15 miles away, but if their algorithm says you're the best then you will show up at the top or closer.  For our area we are generally number 1 for our city and even the larger city 1mm people area next to us.  We have used them for about 9 years.  As one of our locations gets close to 100%, we turn off that account, since our normal "funnel" of customers will feed our needs from then on.  

When we started it Cost us 1.5 months of rent for a "Reservation" that turned into a rental.  Their system is on the honor system. At the end of the month you have to say which reservations turned into actual rentals. It would be very easy for a location to take rentals and not report the rental so you don't pay the fee. But to be ranked at the top of their search, you have to show you converted a larger % to actual rentals. That is a part of the Algorithm. We have learned their Algorithm. We are small Mom/Pop versus industry REIT giants, but still compete at the top.

About a year ago they started charging you a minimum of 50% of the reservations they sent you.  To exaggerate, even if none turned into rentals, you would still get charged 50%.  You could tell the pressure at the call center was on, because you would get reservations, talk with them and they would decide not to rent from us.  After a while, I asked why?  Said they were just looking but the call center booked a reservation.  I have even had 2 and 3 reservations from the same customer for different sizes of units or the same on different days.  You call the center and they normally will take them off as bogus reservations.

Last year they moved our 1.5 months fee up to 1.75 months.  Then last month they moved it up to 2.0 months.  For each rental they charge us 2 months rental for that reservation.  Doesn't matter if for 1 month, a year or 10 years.  Plus, you pay 50% of the "Reservations" if your rental conversion doesn't go over 50%.

Last month I looked at our Rentals and saw how many come from Sparefoot and turned them off for our largest location.  We are about 82% full, use google ads, have a large bill board, plus our Vortex of community renters has picked up and we add renters organically.

This is really the story of a PE firm buying into an industry.  Pushing for revenue/income scaling on a shrinking market base.  But unfortunately, the industry is consolidating.  The Large REITS can build their own advertising systems, plus google ads, etc.  

If you're in Self storage, what other avenues are you using for marketing from a Consolidator standpoint?  We have website, SEO, Billboard, google Ads, Bus seats, covered.

If you're not in Self Storage, what RE industry trends are you seeing in your consolidator or Advertising methods? See if I can take some queues from AIRBNB, ST/MT/LT rental markets.

As we get close to 90% at all locations, we turn off Advertising, since our local Vortex feeds enough renters to us.

Start small and Make Your Big Mistakes Early.

Most investors and agents collect leads, but the real challenge is staying in touch until those leads are ready to act. If you don’t have a plan to stay visible, you’re leaving money on the table.

What is a Real Estate Drip Campaign and Why It Matters

A real estate drip campaign is a series of automated emails or texts sent to leads over time. Instead of sending one-off messages, you’re staying consistent and relevant.

Why it matters:

• Keeps you top-of-mind without constant manual effort

• Re-engages cold leads who might otherwise forget you

• Educates buyers and sellers with valuable tips

• Generates repeat and referral business

Done right, drip campaigns build trust while you focus on active deals.

How to Do It Right

Step 1: Segment your list – Separate buyers, sellers, past clients, and investors. Each group should receive messages tailored to their goals.

Step 2: Set a goal for each sequence – Examples: book a listing appointment, schedule a showing, or deliver a home value report. One clear goal makes the campaign more effective.

Step 3: Keep messages simple – One clear call-to-action per email. Avoid clutter and make it easy for the reader to take the next step.

Sample Templates or Scenarios

Buyer Drip Sequence

• Email 1: Welcome and expectations

• Email 2: Neighborhood guide

• Email 3: Financing checklist

• Email 4: Market update

• Email 5: Tour invitation

Seller Drip Sequence

• Email 1: Free home value report

• Email 2: Pre-listing prep tips

• Email 3: Marketing plan overview

• Email 4: Neighborhood comparison

• Email 5: Strategy session invite

Past Client Nurture

• Email 1: Home anniversary note

• Email 2: Seasonal maintenance tips

• Email 3: Local events and news

• Email 4: Referral request

Mistakes to Avoid

• Generic messaging – Personalization is key

• Overloading subscribers – Space out emails for balance

• No mobile formatting – Most emails are opened on phones

• Skipping the CTA – Every message should move the lead forward

Final Thoughts

Leads rarely convert the first time you talk to them. Most need reminders, education, and time before they are ready. Drip campaigns make sure you are in front of them when the timing is right.

This would not fly in Minnesota, not at all. 

State law on tenant rights supersedes any agreement otherwise, and thus you can make any contract you want but second it goes to court the Judge will say it's unenforceable and throw it out. 

Next, a 10% of purchase price Option Fee, wowzers that's expensive. That is way above market rate in MN. That's in-line with C4D down payments. 

And that's the rub, your doing a C4D, but calling it a LWO so you get the tax benefit's of a LWO and the benefits of a C4D. That may go under the radar in some markets but I have 100% certainty the AG's office would catch that right off the bat and then one would have a whole other level of legal hell to deal with. Because next there gonna start pealing the onion of ALL your transactions, even digging into closed ones for past years. 

Minnesota AG's office is no joke, you do NOT want to be a target of theirs. Keep in mind, this is the same group who took down Phillip Morris. 

I don't know enough of the legal in's and out's in every other state but I am willing to bet there is more like MN then not, which would find your work around for tenant laws doesn't hold water and throws that out. And would see straight through what your doing, and open to all the liability from such. 

I say not worth it. 

If gonna do a C4D, just do a dang C4D. Don't try to scam your way around things to squeeze some extra pennies out of it at risk of blowing up your everything. 

Honestly Ken, this is no better than what Pace is doing. Your better then that Ken. Take the high road. Don't try to scheme for every penny ignoring risk and liability exposure. Which BTW, last's for years and years on end even years after a deal is done and closed out. Because all it takes is that 1 instance, and then they dig through history to find every single potential instance for all years they can nail a person for. 

@Ken M. you promote: 

- Buy off-market: ok, obvious reasoning for that, no explanation needed there. 

- Buy via Sub2: I assume this is to mitigate $ outlay into securing inventory, correct?

- Sell via LWO: Why? Why LWO? Is this to "hack" the market for driving buyers where buyers are a bit thin? Or to "hack" the price you get on contract where current market price is a bit lower because your getting buyers chasing their hopeium of being able to buy in those near term years?  

Why LWO vs C4D? 

LWO opens one to all the downsides of tenant laws, and you loose uncapped earning potential because sold a purchase option on it capping self. 

Step 1, I 100% get and 0 qualms with, it's just factual. 

Step 2, ok, it's a method and while I have some qualms with it there all centered around the mechanics of who and how. Done right, 0 issues with it. The rub is so much BS promoting how to do it wrong out there. 

Step 3, the LWO has me confused. Buyers are tenants so held to all that jazz as a landlord, and concerns it drives the wrong kind of tenant/buyer. Making for a setup of non-closing buyers and a revolving door of damage repairs. 

While not really a loss, one of my biggest Ah Ha's in 18+ years of managing money professionally is that Financial Questions do not always need Financial Answers... 

Most are familiar with personality types etc.  All people process things differently.  

I've learned with time, to try to run a financial question through a, 

Financial lens, Behavioral lens and Emotional lens.  

IE - sometimes you want a financial answer. Like calculating ROI on an investment to see if it's worth it.

Sometimes you want a Behavioral answer - Will making this decision instill new/better behaviors... 

Sometimes you want an Emotional answer - Will paying off your house, increasing your savings etc. bring you more peace... 

More and more, I make less than optimal financial decisions in exchange for ones that are decent financial decisions, but great happiness decisions.  

Buying a 23 year old, high mileage convertable Porsche 911 is a bad financial decision. I'm totally underwater financially.  But... I could care less when I'm giggling like a school girl, or tossing the keys to someone else so they can take it for a spin. :)