All Forum Posts by: Kevin Kaczmarek

If they do not respond to your inquiry in a professional and detailed manner I would immediately seek a new pm firm. That might be harsh, but if you are already starting to feel the up-charge and lack of communication from your new contact, you need to make a change before it costs you more. When I entered my new market I hired and fired 5 PM firms in less than a year. We now do it in house because of our volume, but I know if I were in your situation, I would want to make sure someone was putting my financials in their best interest. That to me is a very questionable charge. That really is not a maintenance issue. Depending on the state of your property, the tenant should be required to pay bill.

no spoilers Bryan. :-)

Homework is a good thing!

Isaac,

Although I cannot comment on the California market I have experience in entering a new market and learning the real estate ropes.

A couple of years ago, my family and I moved to Indianapolis. I had already been a very active investor in another market so I wanted to hit the ground running fast in my new market. Here are a few of the most important things you need to consider:

#1.) Drive your market as much as you can. I know in Cali that is difficult but you need to be an expert of the neighborhoods and area. Use a map whenever possible instead of a GPS so you can remember the area
#2.) Network with active investors and learn about their experiences
#3.) Do not be quick to partner with anyone in a new market.
#4.) Learn the layout of the area. Things like how properties age, what type of soil properties are on, future economic and educational initiatives.
#5.) Build your team of solid A players

It will take some time to get accustomed to a new area, but the knowledge gained will help you make informed and profitable investment decisions.

Bryan, I know you are an avid reader. Pick up a copy of "LEAP" by Robert Castiglionge and let me know what you think.

Great dialogue by all!

that is the beauty of investing. We each can have successful strategies to get to the end goal as long as we know what the goal is.

Can't do that. If I have one company with employees that disqualifies me from contributing to a Solo 401k period. I do have a few companies and a few of which do not have any employees but because I own a company with employees that disqualifies me.

@Bryan,

I have absolutely nothing against a Solo 401k. I have one myself, unfortunately there are two limitations for me and for many others. #1. I employ people now, so I no longer can do the Solo 401k. I contributed to it when it was only me but now that I have a staff that is not an option. If I setup a self directed 401k plan for my company I would still have two limitations. A.) I would have to pass some plan testing to make sure I was not contributing out of balance of my team and B.) I would have a cap on how much I can contribute each year.
With a whole life policy I can contribute an infinite amount to my policy. I could do a one year lum sum contribution and close out that particular policy. I could buy a universal life policy and flex my contributions or I could do like I am currently doing, sending a healthy premium to my investment each month.

Where people get in trouble with whole life is they cannot afford the premiums over time. Hence you should only do a whole life policy if you know for a fact you can afford the higher premiums.

Great read! I think if you enjoyed The Big Short you would also enjoy Liar's Poker. That was a fascinating look into the dark side of how Wall Street has operated for a long time. I have to say Michael Lewis has a way of turning financial issues into deep stories. I gotta run now, need to go pickup Boomerang.

@Kyle,

I prefer Whole Life for shorter term of my premiums (120 months), the consistent premium that I pay, the accumulated cash value, the consistent return, the ability for the dividend to carry on the account value growth after 120 months, the ability to borrow from myself, many benefits of which are also available to universal life. For me its a matter of discipline and getting all the heavy lifting done right away, and let the account work for me going forward. If I had flexible premiums I might not fund the life insurance policy until I got around to it.

@Bryan,

Trust me, there is absolutely nothing sexy about life insurance, but for my investing strategy and my clients we prefer to have our investment with a foundation of stable steady returns with cash flexibility in the future. I cannot find any other investment that can be so tax advantageous going forward than a life insurance policy with cash value. I know it is en vogue to bash the market and its returns, but the pure fact of the matter is this. If you invested $10K in 1975 in an S&P 500 index fund, by the start of 2011 you would net just over $44,000 after, taxes, management fees and market fluctuations. It just doesn't make sense to invest in mutual funds or the market as your primary source for retirement planning. I would argue that your risk goes up every year you invest in the market because you have more to lose.

@Wesley,

No worries. I didn't take any offense, I just wanted to provide more clarification. A Whole Life policy is not for everyone, and you have to know going in that you can afford the premiums, but as long as you can, I like the idea of investing in something that has a life and death benefit for my family and I. Bryan, if I bought term insurance I am betting on myself dying by a certain point. I would rather build a life and death benefit. I don't believe in buying a whole life policy with premiums for life. I like a 10 year pay premium and let the dividends pay the rest of the policy for me.

It took me years and many mentors to uncover this powerful investing strategy. I thought life insurance was a foolish investment until I really learned the power of the investment.