All Forum Posts by: Ian Lockwood

@Account Closed I personally do not have a 401k. I am self-employed so I do not have the benefit of an employer match. 

@Joe Villeneuve I have considered the approach you are suggesting. Use the real estate investing as motivation to continually grow so that I can eventually also invest in paper concurrently. 

@Matt Millard Thanks for sharing! 100% real estate sounds appealing but I'm so used to hearing the script about investing in low-cost index funds and putting as much money in as possible - the sooner/younger the better.

@Dennis M. Thanks for sharing! I can definitely relate to your exact mindset!

@Ryan P. Kotschedoff I have thought of this approach as well but I'm admittedly still learning about different investment vehicles. My Roth IRA has been my only focus the last decade. What types of stock/bond accounts would you recommend investing in, with the goal of also growing a down payment? I know certain accounts have early withdrawal penalties and tax implications.

@Frank Wong Thanks for sharing your specific allocations! Very interesting. How did you arrive at 70/30?

@Craig Jeppesen I would love to be able to max out our Roth IRA's but saving for a down payment would definitely get put on the back burner. For us, at our current income level, it will definitely be a balancing act. Trying to figure out how to best walk that line. Or maybe figure out a way to do both as Ryan Kotschedoff suggested.

@John Morgan Thanks for sharing! I'm curious how you arrived at 65/35 which is almost exactly opposite of Frank Wong. $2,500 per month is impressive, nice work!

@Mark Sewell No employer contributions here unfortunately! I will have to learn more about Self Directed IRA's because I like the idea of investing in stocks/bonds until the right moment when the money can be pulled out for a down payment. Although I admittedly know nothing about Self Directed IRA's at this point.

@Christina Linn 19 rentals, wow! Impressive! This definitely makes me want to put 100% into real estate. 

@Account Closed Thanks for sharing your allocation between cash, stocks/bonds and real estate. I figure BP members would skew toward putting more money toward real estate, but I was hoping some might have a rationale for how they decide the amounts. I'm sure people aren't picking allocations arbitrarily. 

Hi all! Lately I've been contemplating this question and finally figured I should toss it out to the BP community. I'm curious how everyone decides how much of their money allocated for "investing" is put toward real estate acquisitions vs. stocks/bonds. For simplicity sake let's say "stocks/bonds" represent low cost index funds (largely hands-off), with an asset allocation that makes sense for a given persons age, geared toward saving for retirement. 

I not as interested in which is better (which has been debated at length in other threads), because I think they both have their place. Let's agree that they both can have value. What I'm curious about is are people putting 100% of their "investing" funds toward real estate and forgoing any stock market investing, or splitting it 50/50, or some other percentage? Diversification is always touted as an ideal approach, right? And what is the rationale for more or less in either direction?

Using a simple real world example, the maximum 2019 Roth IRA contribution is $6,000 per year. If a couple could max this out two years in a row, they would have contributed $24,000 toward "investments." However this also means that every two years they would have enough for a down payment on an investment property. Would you say put it all toward the investment property, or go 50/50 which would mean a $24,000 down payment every four years instead? Or maybe 75% toward real estate and 25% towards stocks/bonds? How would age effect this, since getting into the stock market sooner is always better to take advantage of exponential growth and to ride-out the highs & lows?

I realize this is an over-simplification of a complex question but I'm curious how everyone approaches this. I'm sure not every BP member is 100% all-in on real estate, so those individuals must have a rule of thumb for how much of their "investment" funds go toward different types of investments - real estate, stocks, other...

I'm eager to learn how everyone approaches this. I know I have been wrestling with it for some time now. 

Coincidentally this informative @Matt Faircloth video (https://www.biggerpockets.com/renewsblog/real-estate-investing-over-stocks/) was posted today and touches on this topic, but does not get into specifics about allocating different amounts of money between real estate and stocks/bonds. Unless of course the game plan is "All In" on real estate investing, which would certainly make me rethink my approach moving forward the next few years. 

@Ed Register, thanks for the quick reply. If I'm an agent under a WV broker than a percentage of the commission on deals I do will go to the Broker. The reason I'd like to be my own Broker is so that I can keep all the commission. If I understand correctly, the only way for me to do this is to help people buy/sell for two years and then become a Broker?

Currently I'm a licensed real estate agent in New Mexico. For the past two years I've been working as a licensed assistant to another agent in my office. His name is on all documents but I assist with all aspects of his business and we do about 25 transactions per year. In November I could become a NM Qualified Broker if I wanted (which is our highest designation). 

I will be moving to West Virginia in December. Upon moving I plan on being only an investor (not helping people buy & sell). Since I only plan to be an investor I'd like to become a Broker in West Virginia so I don't have to work under someone else. However the WV Real Estate Commission is telling me that to become a WV Broker I must submit two years worth of sales history and all the transactions I've help with as an assistant in NM won't count. Upon moving to WV since I don't plan on working with buyers & sellers, I'm wondering how I'm suppose to acquire this two year sales history. Is it impossible for me to ever become a WV Broker, unless I decide to work with buyer/sellers again, which I'd prefer not to do? I have to believe there are real estate investors in WV who became licensed for investing purposes only. I'm hoping some WV folks can weigh in on this and explain what my options are in. Thanks!

I'd actually be curious to know everyone's thoughts about @Stacy Weng's question - "are there specific areas in the Shenandoah Valley that you recommend looking into? Would Winchester be the main area?" 

What are people's thoughts regarding,

- Shepherdstown, WV

- Martinsburg, WV

- Strasburg, VA

- Front Royal, VA

- Berryville, VA

- Charles Town, WV

- And surrounding areas

What type of opportunities are in these markets?

@Ben McMahon I'll be moving to the Shenandoah Valley in about 6-months. Plans are to begin investing in Winchester, VA and the surrounding communities (roughly a 50-mile radius). Would love to pick your brain about the market there.

@Heather Hartsock Welcome to BiggerPockets! I haven't personally invested in property yet, but have been plugged into BP material for the last two years. Will be relocating to Capon Bridge, WV (~25 minutes west of Winchester, VA) in 6-months.

@Joan Partridgewhat type of team members are you looking for? Lenders, contractors, etc... I'm happy to connect you with specific people if you can elaborate on who you'd like to be connected to.