All Forum Posts by: Mindy Jensen

@Kyle Scholnick, I have hopped back and forth between real estate and the stock market most of my adult life. I make money flipping houses, and then take a break for a while and put the money in the market to grow (hopefully) while I look for another deal. I have made money both ways and consider both valid investments.

If your employer offers a 401(k) match, I would put as much as you need to into their program to get the entire match. It is free money that you are throwing away if you do not.

After the match, you can decide whether to add more to the program or not. Some companies give great 401(k) options, while others offer really bad programs, and you just have to choose the best of the worst.

The 401(k) is pre-tax, which can help reduce your tax obligations at the end of the year, so there are benefits to that program. You pay taxes on the money when you take it out. After retirement perhaps you are in a lower tax bracket, saving you even more taxes.

Post-tax investments are self-directed. I read a lot of personal finance blogs, and almost all recommend the same thing, Vanguard Index Funds. Vanguard was started by a brilliant investment mind named John Bogle. Like Warren Buffett and Charlie Munger, I would follow John Bogle almost blindly, he is so good. 

Trying to time the stock market, or trying to pick individual stocks to purchase is just another way to gamble. You can make a lot of money, but you can also lose a lot of money. 

But as @Brent Paul stated, a diversified portfolio is the best way to go. I wouldn't recommend all your money in any one thing.

Welcome to BiggerPockets, @Andre Albano! You are in the right spot to learn about real estate.

@Brent Paul had some great questions. Another thing to think about is PMI or Private Mortgage Insurance. PMI is required if you put less than 20% down on the house, and it can cost you hundreds of dollars every month. The old mortgage terms allowed you to remove PMI once you hit 20% equity in the property, whether by paying down the loan or the property appreciating. New regulations since the housing crash state PMI stays with the loan for the life of the loan, meaning you must refinance into a new loan to remove the PMI.

Brent also recommended you check out the Learn tab at the top of the page. You have already found the forums. Have you checked out the Blog or the Podcast yet? Both are filled with great information about real estate.

If you are brand-spanking new to the site, go to the Start Here page.

Another strategy you may not have thought of yet is house hacking. You are currently renting a room in someone else's house - have you thought about purchasing a home and renting those rooms out? It would be possible for you to live free or almost free by renting the rooms and using the rent payments to pay your mortgage.

Good luck!

Thank you, @Account Closed! 

You have found the forums, have you read the Blog or checked out the Podcasts yet? There is even more information to be found there.

Welcome to BiggerPockets!

@Paul Brown jr, you are taking the first step by joining BiggerPockets.

Have you read through the Ultimate Beginner's Guide? That is a great first step.

Browse the Forums, reading everything you can on the niches that interest you. Same with the Blog. Listen to the Podcasts - they are very informative while being entertaining.

Find a local REIA group and go to a meeting. You will meet like-minded people and start making connections. Good luck!

I think you would find yourself regretting the decision. Why do you want to tear it down?

Short term rentals can be done, but if there are habitability issues, you would have to fix them, putting money into something you will very quickly destroy. 

Welcome to BiggerPockets, @Euan Swan. What a small world, my cousin goes to IU. Go Hoosiers!

I love that you are thinking about money at this age! I don't know what age you can get a mortgage. Perhaps your parents could co-sign? 

House Hacking would be a great opportunity for you, especially while you are still in college. Here is an article that Brandon Turner wrote about House Hacking. There are also at least 4 Podcasts on the subject.

If you could find a 4-plex or smaller, you could live in one unit while renting out the others. Four or fewer units allows you to get an FHA loan, which can be had for as little as 3.5% down.

Welcome to BiggerPockets, @Account Closed. You have already found the Podcast and the Forums. Have you read anything in the Blog? So much amazing information there. You have already done many of the things I would recommend, joining an REIA group, checking out the podcast.

What is your niche? What sort of investing are you looking to do? 

I would tread lightly with this request. She could move in, discover something she doesn't like, and ask for concessions after the fact. She would already be in, so it would be difficult to walk away from the sale if she starts asking for a little this, a little that, then soon it is a big this and a big that.

Perhaps you could have something drafted through an attorney that the property will be conveyed in the condition as of May 21 or whatever. 

Some people just want to move in and be done with it, but others could become really difficult to deal with, knowing they are already in.

How has she been to deal with so far? If she has been problematic, bet on that behavior to continue. Would love to hear more...

@Joshua Dorkin, when does BP go public? I want in on that.

@Bob H., I truly hope you take the advice of every single person who is saying no. This is a massive headache in the making. It isn't a question of WILL it happen, but WHEN will it happen. Keep in mind you are in this business to make money. This will end up costing you money. I can almost guarantee it. You want renters who will give you the rent payment, not an excuse for why they don't have the rent payment.