All Forum Posts by: Justin Manges

@Avery Carl

95% stocks 5% cash…. I’m looking to figure out a way to leverage that into a down payment for real estate.

@Chris Mignone check out JBM home inspections and PM me if you want any more info.

@Max T.

You hold.

I wouldn’t use it for flipping. I don’t sell stocks when they’re down… and I wouldn’t sell real estate when it’s down either.

@Casey Mayton also when you say the ROI on stock is a lot better… are just counting cash flow on the real estate, or are you also including appreciation and debt pay down? I've personally averaged 18% in the stock market since I started (2010 was a great year to start :) ) but I don't think that beats what can be done when every dimension of real estate is examined.

Plus with real estate I feel like it’s much less volatile and can keep food on your table if your stocks crash… and if you’re lucky you can use your leftover cash flow to buy stocks at a market bottom!

@Casey Mayton BOTH because you can take a SBLOC out against your stocks to buy real estate at a low rate.

I just learned this recently and haven’t hammered out all of the details but the thought of leveraging stocks to buy real estate appeals to me, because you never actually sell the stocks.

@Brad Hammond there’s no fees. I currently keep my emergency fund in a ROTH. I keep a ledger of my deposits so I can’t accidentally withdraw the interest and get hit with a fee.

If I'm doing a BRRRR on a property, I likely won't have many cap-expenditures come up for the first several years, as most of the house will be new.

My question is, would anybody you consider putting your cap ex allowance in a ROTH IRA and letting it gain some tax free interest while it sits?

You would always have access to the principal, fee free. Just not the interest.

@Jack Orthman what market are you in where the homes aren’t worth more than they were in 2004? It’s definitely not mine. My current home is worth nearly double what I bought it for in 2010, with no forced appreciation.

Also, are you taking appreciation of the homes into account or just cash flow? I could be wrong but I was under the impression that multi family didn’t appreciate as fast.

@James Palassis sorry I have another newbie question.

Do people have these in place of LLCs, or in addition too? I've seen a lot of conflicting opinions on here about whether you should even do an LLC.

@James Palassis I’m a newbie… what is the umbrella policy for?