All Forum Posts by: Karen M.

Thanks for the book recommendation, Jim!

OK, this feels like a stupid question, but....

--do you run your rental investments as a business, and...

--therefore, do you deduct all your business expenses, such as your REIA membership, miles driving around to explore neighborhoods, etc. etc. etc.?

I am starting out with research, want to join a REIA, and am going to start exploring and planning. There will be expenses for books and miles and office supplies, etc. etc etc.

Are you set up that these are tax deductible, and should I start with a bank account for a sole proprietorship (and convert to an LLC when I actually am ready to pull the trigger and purchase properties?) Right now I'm in the learning phase, and this phase could take several months or even a year. I'm not spending a great deal of money, but if I should track and take deductions, then I'd like to.

Thanks so much!

Hi Everyone!

I'm a couple weeks into learning, and I have to say, Real Estate is fascinating and so far, it's been very fun to learn about.

Last night I went to a Milwaukee REIA meeting. I got to meet Dawn A. from Bigger Pockets! It was so cool!

Last night's meeting was a roundtable, Investing 101 and Strategy session. I learned some things and have some questions.

1. One person talked about owning a duplex in Indiana within an IRA account. This is fascinating... you can own a property in an IRA? It was explained that if you do this, you cannot "work for your IRA", so it seems that the property needs to be professionally managed. A few IRA places and "checkbook IRAs" were discussed. I'm not sure what a checkbook IRA is. I thought that my Real Estate investing would all be with non-retirement money.... we have IRA investments in equities and I'd like to learn more about how that works.

2. I learned a little bit about private money. I might like to become a private money lender, or at least look at that as a something to try. What kind of money do you need to do that kind of lending? What steps should I take to learn about private money and how to get started or better discern if this is the path we should take?

3. The meeting coordinator used a phrase "being a slave to the bank". My initial thinking is to become a buy and hold landlord, buy a suburban property and rent it out. 30-year mortgage. 25% down. We can only afford so much before we will run out of down payment money. I should ask the organizer what "being a slave to the bank" means.... but maybe you have insights.

Thanks very much! I appreciate your input and conversation!! --Karen

Hi Amy, I saw you at the last Milwaukee Reia mtg. I'm a newbie too, looking to get into buy and hold rentals. Are you going tomorrow night? I'm planning to go and check out the 101 and strategy session. I will look for you to say hi!

Hi Mark! I grew up in W. De Pere. Welcome!

I am not a real estate investor yet, but we have been savers for a long time and, our net worth is above average. (we're nowhere near you guys but the idea is to start working on that!)

My first new car was a Dodge Neon. Got rid of it after about 5 years when the a/c failed.

Second car was a 2001 Acura TL, a very ritzy car but we ended up getting a very good end of model year, last ones they're trying to get rid of special. My husband is still driving this vehicle with 220k miles on it and it is still a very nice car, it's been a great vehicle. We just had it totally detailed and having it super-clean was a nice treat.

I got the third new car, a 2007 Honda Odyssey minivan, after we had our second child. Now we have 3 kids, ages 8, 6, and 4 and having a minivan is great. It's got a few very unfortunate scratches but that's life.
We really love Honda / Acura. They have been reliable, good steady cars for us.

Our thing about cars is to buy new and drive a long time. My husband wants a new car, and our Acura may not last forever. I want to get a cash flowing house to pay for his next car. He loves the show Top Gear and would love a Porsche someday. I've always liked the idea of a little convertible but it's not too practical where we live.

There was an article in Better Homes and Gardens in the last 6 months or so that "gray is the new beige"... so this may be the next trend.

FWIW, the exterior of our house is blue, like a blueberry, and white and I love it.

I also love that tan is a little masculine. I've never been a "frilly" decorator.

Personally, I love tan. My husband disagrees, he would like me to have more color in our house. My kitchen is tan, opens to the family room which is off white but will get painted tan, my living room is tan/yellow decorative paint, my bedroom is tan decorative paint, one bathroom has tan wallpaper. Our three boys bedrooms are BLUE and one bathroom is purple (had to find some wallpaper that worked with our 70's harvest gold bathtub).

WHY I LIKE TAN: It's neutral, and it feels WARM and cozy. It goes well with leather furniture and wood furniture and wood floors. It's a great color to work with textures with. My kitchen is tan walls, wood floors, black appliance and off white cabinets. I think it's beautiful.

What color(s) do you like better?

Congrats on your graduation and welcome!