All Forum Posts by: Account Closed

@Andrey Y.

I highly suggest you read the millionaire fast lane by MJ Demarco.  It's around $14 and you can get the audio version to listen on your phone.  It will give you a different perspective.  It's considered a cult classic FYI.

401ks are addressed extensively and offers a counter opinion to the masses.  I try to be an independent thinker.  

I wish you continued success in your investing.

@Andrey Y.

https://www.cnbc.com/2017/07/17/why-high-401k-fees...

@Tom Hertel

I'm not debating the merits of equities vs real estate.  The op asked if the 401k is a good idea.  My opinion is no its not.  You see I may not be a physician but I'm still considered a high wage earner.  I'm aware of all the fabulous tax benefits.  Yet the lack of control coupled with the high fees do not make it a good vehicle for creating wealth.  

As for my partner no he did not get lucky. What he has is control.    As for the stock you posted with the amazing returns I don't see the point.  Had I invested in the stock via my 401k I still would not be able to access the money.  I would not be able to go to the Tesla dealership with my stock balance printout and buy a car.  Heck I would not be able to buy a happy meal with it.  You see the money is locked away unable to be touched until my hair is grey and I'm on my second hip replacement.  No thanks.  If 401ks work for you great keep investing in them.  But to proclaim them as an end all be all is a bit foolish.

@Tom Hertel

We will have to agree to disagree.  With 401k's your money is tied up for decades.  You absolutely have no control over the market.  If I turned 65 in 2008 and absolutely had to retire and depend on my income well guess what?  50% to 60% of my income would be gone.  This of course is after decades of penny pinching.  Now let's compare this to my business partner.  In 2006-2007 he sold his entire portfolio and kept cash in the bank.  In 2008 when the sky was falling and everyone was selling distressed property he purchased or wholesled everything he could get his hands on.  During the Great Recession I lost at least $300k while he made millions.  It comes down to control.  I can't control the market but I can control the real estate I purchase.  

In order for me to access my current 401k I need to leave my job. There are no exceptions except to cash out and take the penalty. I'm also aware I can access the money prior to 65 I have a self directed IRA. However once Again I can control the account but am unable to access it until I retire. Last I checked wheelchairs don't fit in Lamborghinis.

Oh and by the way I'm an accredited investor so I'm not talking out of my backside.  If people want invest in 401ks go ahead I'm not here to stop them.  But to say it's a sure fire way to make money is foolish.  The richest people I know offer 401ks they don't participate in them.

Good luck

I don't believe in them.  I have 500k in my 401k that I cannot touch until I leave my job.  I'm 46 so I need to wait until I have one foot in the grave before I can spend it.  Furthermore there's quite a bit of fees associated with them some of the hidden.  Be careful who you take advice from.  The majority of people will work until retirement at age 65 (55 if they are lucky).  It sounds like your on a track to make money fast.  I don't know if a 401k fits in that plan.

@Richard Ladenberg

Maybe the tenant can text the car insurance company that their deductible will be paid on the 11th as he has rent due the first of the month.  Just sayin

@Account Closed

As an example I'm working on a new build.  First thing that needs to happen is the old structure needs to be bulldozed.  So say it costs $10k.  I bulldoze the house, I pay the contractors.  The bank comes out to inspect the work.  They see it's been razed, I provide receipts for the work, the bank cuts me a check.  It's called a draw.  My monthly interest payments are increased by the draw (money borrowed) amount.  

@Account Closed

In addition you need to show proof of funds for the startup construction costs.  Some hml only fund purchase price.  Some fund both construction and purchase price.  Either way they will ask for your most recent 3 months bank statements (or wherever you keep your funds brokerage account etc).  They are looking to see liquidity.  If you are partnering on the deal the other person can show pof.  When you start construction you need to use your own funds to start rehab.  You then request the money from the bank in the form of a draw.   This can take a few weeks to a few months depending on the scope.  

My advice is you contact a few hml get an application and see the criteria.  

Good luck.  

Exotic dancing

@Viviana Ramirez

I have a couple of projects going.  One in marina del Rey and one in cheviot hills.  If I can help in any way let me know.

Good luck