All Forum Posts by: Kurt Defenbaugh

@Reid Mathews Do you have any annuities where I can make >150% ROI on capital gains? Just learn this business. You'll feel dirty about pushing weak financial products on the middle class. You're inclined to be the leach on someone's investments bc that's what you know (financial products) Hahah. Just find your own deals and get some money working.

@Christopher Lane You need man advice and investor advice. :))

I would have been beyond grateful had my parents taught me what your parents taught you. They gave you the tools to break free from the corporate gig grip and build wealth, which can’t really be done via jobs that build others equity. Equity is the goal of business.

Your wife (while I’m sure she’s great and you’re only giving us the pain points) doesn’t know this because her parents probably both worked for someone else and were traditional worker bees. She may even be looking at your friend group saying, “Becky’s husband just bought her the LV bag I want...he makes so much money....blah blah...”

But does she realize that doing what you’re doing actually builds wealth beyond what any of your friends can achieve? Has she seen the numbers comparing your $17k/yr in a 401k growing @ 6% (if you’re lucky) for 35 years compared to buying rentals whether MF or SF using less cash, more leverage, while gaining equity using other peoples money? Lay it out for her bro. It’s astonishing.

Does she want to retire on 3-9m or 25m? Unless you become the CEO of a large corporation, you’re not going to sniff the 25m. And the odds that your corporate career blesses you w that trajectory are low. Whereas you’re in the driver seat w/ investments and can grow equity as fast as you can find deals.

I say no to financial advisors, because they don’t invest. They push financial products like any sales person. I take advice from other investors.

Have her read Rich Dad Poor Dad. She’s in Poor Dad thought.

I’m blessed because my wife is type A like me and tends to be Ray Charles when it comes to any risk. She’s been in real estate for 20 years and finally learned that investing is far more lucrative in the long term than selling retail.

We constantly discuss our goals like a team and work together to get there. She’s my #1 business partner, teammate, homie and friend. We want to be on beach spending time w our kids while our bank account is working for us. Period. Is there a job out there that lets anyone do that? No. You’ll trade all your time for a little money, but they’ll make you feel too comfortable to leave bc most will buy a bunch of **** that they then have to pay for and the cycle continues.

Be a team. It’s fun. Teach her. Cheers.

@Shiloh Lundahl These guys are big money guys. I think they’re right (what do I know) about the RE market, but at my level, there are always more and better deals to be found in RE than sinking dollars in a business w/ no assets and no real track record, which is what they can do w/ big money for big equity positions. Makes more sense for them. If you’re the average REI, just find good deals and hold out for the downturn when deals get even better. At least w/ RE, you own an asset whereas most businesses have no assets other than their AR. And if the AR is juicy, they probably don’t need your money. And does anyone want to rely on a startup CEO to get returns? Huge risk. Huge returns. I’ll take medium risk for medium returns w/ more predictability. My 2¢!

@John Warren John—That would imply that those earnings are on the same return as the LLC for the multifamily. But they would be separate. I’m starting to see why a lot of REIs have side hustles. You almost need a tax shelter to offset that SEI tax burden, right?

How can I create a tax structure that minimizes tax burden as a SEI? Is this even possible?

@Jerry Ta Really good feedback. Is it worth asking the bank prior to transferring title to LLC so that we don’t damage the relationship we’re trying to build? They’ll obviously see it on the next property when we refi...

@Richard Sherman Do you have clarification on what makes umbrella policy good or bad?

@Cody L. As I have to remind my innerlooper friends. I’m not THAT FAR outside the loop. Give me a shout when you’re in town.

@Cody L. The Freemasons are getting their pitchforks as they read this. Let’s grab coffee sometime. I’m in Spring Branch area. We are actively looking for 30 door MF now, but you bring up a good point about finding that gap where the numbers still work and the competition is people like you and me.

@Richard Sherman Great feedback. What’s your advice on scaling? At the moment, my wife (industry pro) has to source everything and its slow. We have our own capital and access to capital from investor(s). Finding the deals that work seems to be a slow process. How do you source deals? In a perfect world, we would prefer more doors and less roofs ;) but a door is better than no door for our long term goals of spending less time working for others and more time working growing our net worth.