All Forum Posts by: Kevin S.

when you say 'approaching retirement,' how long are we talking? one option would be using it to BRRRR enough properties to generate the desired amount of monthly profit in the end. as far as cash vs down payment, if you want to build more wealth over time, i would definitely use debt so that you can buy 'more' ($) real estate. leaving it in index funds isn't a BAD idea, but if you have the resources (time/knowledge) to invest in RE & do it wisely, you will likely come out so much farther ahead. another question here is, how much monthly income are you looking for this nest egg to generate in retirement?

How much monthly income can 1M generate in about 9-10 yrs in RE (leveraged)? Try to leave 'it depends' out. LOL. Guesstimate based on normal, average, median, 50% percentile. Thanks.

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Thanks for your different input. So I gather couple of things from your response. Try to get a local accountant and that accountant doesn't have to own RE to offer solution.

Do accountants geared towards RE investors even want to handle non RE accounting needs? Zach said to keep only one accountant. I wonder what other investors here who have small businesses and invest in RE keep one or two accountants. Awaiting more responses.

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Quote from @Louisa Davis:

@Kevin S. This amount of net worth would generally make someone an Accredited Investor, meaning different types of investment options are available to them.

They could put some or all of that money into private real estate deals - like syndications - and make 14-20% Average Annual Returns.

This is what I'm focusing on right now!

How do you vet these deals so as not to loose money or end up holding properties you never intended to own? How risky is it? Thanks.

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Chris already answered that question stating "If you want to be a real company/syndication then do it the correct way". If it's within friends and family then probably a simple (preferably attorney drawn) agreement/contract will do. You did mention external investors. If you want to appear 'official and professional' the the cost of attorney is the cost of doing business. Can't have one without the other as they say.

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Columbus, Ohio

Does the 'specialized accountant' have to be within the state due to applicable RE state laws (if any) as it pertains to each state?

Do clients with 'regular' accountants now retain 2 accountants or switch regular accounting to the specialized accountant(under one roof)? Why and why not? Pros and cons. Challenges and benefits of each option.

Investors and accountants, please chip in. Thanks.

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Got it. Thanks.

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I realize there are lots of variables involved but can these two even be compared at any level or in any way? If they can be compared what factors do I take into consideration? What are the pros and cons? I read a post that said "Doors over roofs". Is that always or mostly the case? Thanks.

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Quote from @David M.:

@Kevin S. If your lenders pull your credit within the same time period, it counts as one pull. Say about 2 weeks, maybe three. So, wise lenders will ask first,and if they understand you are shopping, they will wait until you tell them. Basiclaly, you reach out to a bunch of lenders, give them your info, situation, etc. Once you've contacted whom you want, then you tell them to pull your credit say one particular week.

A credit check here and there doesn't kill your credit, and it recovers relatively quickly.

Thanks David. Btw I read another post here by Beth Johnson (lend2live) whom you referenced before and certainly piqued my interest. I will be checking that out too.

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Quote from @Timothy Hero:

Quote from @Kevin S.:

Quote from @Timothy Hero:

depends on the life you plan to live in retirement. In my opinion, buying homes all cash with no intentions of refinancing them isn't the way to go. You have dead equity that you never plan to ever tap into, which is arguably one of the best advantages of real estate.

Assuming you have $1M and are nearing retirement, I'd keep $250k in the bank and put $750k down on rentals with 80% financing. This depends on how connected you are for investment opportunities , of course.

The mortgages offer tax advantages and allow you to leverage your capital. Pay a management company to avoid having to come out of retirement.

There's no right or wrong. It's what works for you.

Pretty good input and I voted for it. I see you are a mortgage broker not a lender. What is your take on choosing between a mortgage broker vs lender? I am told broker can shop for better rates, has more choices(of lenders) and use one credit hard check vs more than one credit pull if shopping between 2 or 3 lenders. Thanks.

Being a broker, I may sound biased, but here's the reality: when you call a lender, they are going to sell you that they are the best option, because nobody is going to sell you on using their competitor.

But as a broker, there's no reason to be biased. If i quote you with 8 different lenders, I get paid the same amount regardless, so there's no reason for me to play a favorite.

To add, if you're working with an experienced broker, he or she will know the smoothest lender to work with.

Thank you. What about credit check? Do broker need credit pulled multiple times when shopping with multiple lenders?

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Quote from @Bob Stevens:

Quote from @Kevin S.:

I wonder what do someone approaching retirement do with $1,000,000.00? Buy a single property with cash and have about $65,000/yr in cash flow or use it for DP on a $4,000,000.00 property? Would the cash flow be the same? Or leave it in SP 500 ETF? The question is probably over simplified but a good starting point for feedback. Thanks.

Buy anything, as long as you get about 10% NET per year. Who cares if 10 SF, or one MF, money is money

Thanks Bob. That is a true but simplified solution. Because I am new to REI and have all assets in the market I was seeking a more in depth answer especially from seasoned RE investors who beat SP500. Isn't the return in RE more like 20% because it is leveraged? I understand RE is more involved as part of the deal.

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All Forum Posts by: Kevin S.

Kevin S. has started 24 posts and replied 393 times.

Post: What to do with $1,000,000.00?

Post: Do I need a CPA? ANSWER INSIDE

Post: What to do with $1,000,000.00?

Post: Syndication and structuring operating agreement

Post: Do I need a CPA? ANSWER INSIDE

Post: What to do with $1,000,000.00?

Post: Which one appreciates more/faster? Duplex or SFR?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?

Post: What to do with $1,000,000.00?