All Forum Posts by: David Jayne

Welcome aboard! I'm a Navy guy, but my brother is AF. Of course, we all know which service is better... :) I actually think a military career can compliment RE investing well if done right. I wish I had done it right from the start!

@Dawn Anastasi is correct. Positive posts and people have a lot more success. Let everyone know how your 2-plex/4-plex plan pans out!

David

I was listening to a recent podcast, and the guest indicated he would advise liquidating IRA/401(k) acounts, transferring to a solo 401(k) and then investing in discounted real estate notes. He also advocated not making additional contributions to company 401(k) plans, regardless of their matching policy.

I realize there are some pretty horrible IRA/401(k) plans out there, but I think that is dangerous advice. If you liquidate a 401(k) before age 59 1/2, you incur taxes plus a 10% penalty. Adding that one-two punch together can easily equate to a 40%-50% reduction in your retirement account. If you're young and you don't have much in the fund, maybe it's not a big deal. But...if you're 50+ and retiring in a decade or less, you would have to significantly outperform your current investments to make it worthwhile (roughly double the rate of return). Not impossible, but a little too risky for my blood.

Also, if your employer provides matching contributions, that's an automatic 100% return! Tough to beat a doubling of your investment overnight. Even if the available investments suck, you could at least contribute enough to get the match. You could always take your funds and make a run for the RE border when you leave the company.

Anyways, I guess my point is, you can't make just broad-brushed recommendations. The best answer is likely dependent on the individual's circumstances.

i've used it several times, but i didn't know about the monthly limit. thanks for the info!

I've been reading a lot about purchasing RE with self-directed IRAs. This topic intrigues me, but I'm concerned about all of the restrictions, particularly regarding prohibited transactions and disqualified persons.

Has anyone set up an arrangement with another person to address those concerns? i.e., my SDIRA will buy your properties for $x, while your SDIRA will buy my properties for $x...

Maybe it would be better to bring in a third partner and set up an LLC in order to keep everyone's % below 50%, which would get around the disqualified person issue?

These funds just seem like such a gold mine if you can tap into them. Legally...

i must admit upfront, i hate social media. i was the last person i know to get a cell phone, the last to get a smart phone, the last to sign up for facebook, twitter, linkedin...fortunately, i never did set up a myspace page.

not that those aren't great inventions, but i don't like to have my life consumed by gadgets, gizmos, and social websites.

with that said, i see the value of maximizing social media in the real estate investing business. but i'm not sure my once-a-month login to facebook will quite do the trick.

so my question is, how do you effectively utilize social media without letting it overtake your life? if i only chose to use one site, which should it be? the thought of keeping up with 4-5 media modes is totally overwhelming to me.

thanks to all for your insights. i think the demise of detriot really got me thinking, but kansas city is a fairly diverse economy. the natural disaster concern is a consideration, though. two of my properties are practically right next to each other, which isn't the best idea i guess.
@Account Closed

@Account Closed i have heard memphis is a solid area, but i've never seen that breakdown. thanks for sharing. i don't know the economics of the city or any of the neighborhoods there, but it would definitely be worth some investigation.

Robin,

Welcome! I'm new as well, but the BP website truly is a gold mine.

I've lived in very similar locations (grew up in KS, stationed in Yorktown/Williamsburg, VA, Ventura County, CA), but KC is definitely the only place I would look to invest out of that lot. I have a few properties, but I'm always looking for more.

Managing from a distance is not easy (still haven't found a property management company I'm happy with!), but I know all the heartache will be worth it down the road. I get back maybe once or twice a year, but I'd like to get involved in an REIA when I'm back.

As long as you become a Yankees fan while you guys are in NYC, all will be well...

David

I've been considering getting my real estate license (probably online) in order to enhance my real estate investment business. I could probably also make a little petty cash on the side. I'm not even certain which state to get it in, and I understand that not all states have reciprocity agreements.

Is it truly worth it? Does anyone track your ROI for getting your license?

Hello BP community!

I have eight rentals, seven of which are in the Kansas City area. I'm looking at my next purchase, but I'm not sure if it's better to focus on Kansas City, which I'm just starting to learn, or diversify into another area (Memphis? Milwaukee? Detroit? NO!!!). I understand the concept for stocks, but I'm not sure it's as applicable in real estate.

Thank you for your insightful thoughts.

David