All Forum Posts by: James Park

I had no idea you had twins. I think Mark Ferguson is also a father to twins. My twin boys are 5 years old and I am looking to opening up a Utah 529 plan to due to its low fees and vanguard funds. I have been contributing to my Roth IRA since I was 21 and I actively manage my Roth IRAs like my personal hedge fund and have always thought of using my Roth IRA funds to pay for college as I will self insure my retirement with rental properties than qualified retirement programs. I like the idea of having a Utah 529 plan with the Roth IRA being my umbrella for any college expenses over what I have in the plan. Any non qualified education distribution from the 529 will be hit with a 10% penalty and taxed as ordinary income if there is any money left over. What state did you open up your 529 plan at and how did you go about estimating the amount you will need in your 529 plan?

For Georgia residents, we have special program here called the Hope Scholarship where the state pays for the tuition for any in-state school in Georgia if your children maintains a certain GPA in high school. In a perfect world, I would be extremely happy if my twins got into Georgia Tech on the HOPE scholarship where I would not need very much in my 529 plan, but you and I know that is not the way the real world works :)

Originally posted by @Bryan Hancock:

I have been contributing to my oldest's 529 plan for about 6 years now. We had twins about 3 years ago and I have used the same plan for their college fund as well. Vanguard is the best of breed for this type of plan IMO and is what I would recommend to anyone looking for a way to grow their child's college fund using securities. If you plan to invest some money for their plan in your lucrative real estate projects make sure they're done properly and I would recommend using a TPA to have things at arms length.

Note that you can "supercharge" their college fund if you're a high income poster and can afford it. IRS Form 709:

IRS Form 709

is what you need to look into if you plan to do this. Apparently the gravy train stops at $300k per account. That should be far more than you need to send your kid to a quality college.

1 Vote

Just curious to see if any of you have contributed to an education IRA 529 plan for your child's future college expenses. I have heard that the 529 plans in Utah and Nevada area the best as you can select low fee Vanguard funds.

Thanks.

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@London Stewart,

Personally I believe that there is perhaps no better point of entry into the real estate game than the real estate brokerage. That being said, you are very young, I would personally recommend that you get some experience under your belt working for corporate america related to finance that allows you to apply what you learned in college. Also read as many books you can get your hands on real estate investing and finance. Don't pigeon hole yourself this early and explore different opportunities in your early 20s and try to find a vocation that you are truly passionate about.

Good luck.

1 Vote

Tricia, what high school cluster are the sfrs located that you are researching?

james

Originally posted by @Tricia O'Brien:

When researching a city out of my home state, what's the best way to research a zip code or a city on the internet for good schools? I'm looking for SFRs in the Chicago area that are in B locations with good schools. Any input would be greatly appreciated!

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@Scott Trench, it is interesting you can add titles like the CFA and CFP which are primarily titles for Financial Advisors, Analysts, and Wealth Managers, but don't see the CCIM designation, which is one most respected designations among real estate professionals. I think that the CCIM designation would be nice one to add here. Just a suggestion.

3 Votes

@Vincent Crane,

Atlanta has a great future ahead in terms of business climate and building your real estate empire. If you find the cash flow to be tight in the Atlanta market, I can assure that is even worse in Austin, Houston or Dallas for same class properties. There is no need to force the deal, just wait for the right deal and opportunity to arise and let the prices cool off a bit. When I was 25 I bought my first primary residence which was a small 2 bedroom condo in the northwest suburbs of Chicago, then once I moved out, I turned it into a rental. Perhaps your first step is buy your primary first 3.bed / 2 bath SFH in the best neighborhood you can afford. Once you get married and have kids of your own, you may neeed to move to a bigger property where you can turn your first primary residence into a rental.

Wayne Gretzy said, "Do not go where the puck is, but go where the puck will be." This is same in Atlanta real estate. Prices are already expensive inside the perimeter because the puck has already been there. You have to now figure out where the puck is headed in the future in Atlanta.

Also keep in mind we have two fine public universities in Georgia: Georgia Tech and University of Georgia - Athens. Children of the Georgia residents are eligible for the HOPE scholarship where the state will cover the tuition. From an early retirement standpoint. this can either set you back or set you ahead by 10 years vs going outstate or to a private institution if you have three children.

3 Votes

@vincent crane,

You are not going to leave us for texas are you? What we should be trying to figure out is how to own real estate in Georgia for less than 1% property tax and own a corporation in florida for the zero state income tax benefit like Texas. Get the best of both worlds.

1 Vote

@Natalia Latsios,

Good for you!. I can already tell that you are going to be a successful person in the making. Anyone considering to drop out of college should read this post.

If you don't mind me asking, "At what university are you taking your business classes at?"

Originally posted by @Natalia Latsios:

Personally, I am in college, have started my own company and have a part time job. Due to the fact I have my business set up I can now apply all my business classes to real estate investing. Yes, college is a good chunk of change and that is why I also have a part time job until my investment company generates enough income for me. I hated my GEN EDS but my business classes are valuable to learn the basics of finance, accounting, business law and managing. Which can be helpful in this field.

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@Nicholas Patrick

If you are passionate about starting an innovative tech company and know that you are going to build the next Apple, Facebook, Microsoft.... my answer would be "Perhaps you should drop out", however if you are dropping out to become a full time investor... my answer would be "Absolutely Not?"

I think the advice @Mark D gave you is good. With a 3.2 a transfer to MSU or Umich is a real option and you get in-state tuition. The college name will stay with you for the rest of your life and I believe it is priceless. The key is you have to find what you love and have passion for, and it seems like you have found it before most of us have. Warren Buffet found his passion at the age of 8... Steve Jobs at the age of 20. If you don't love what you do, naturally a sane person will give up when times get really tough.

I studied business as an undergrad and got my MBA with a real estate concentration even though I was in a completely different industry at the time. I had no idea that real estate would become my lifetime profession although I was working in a completely different industry. The two courses that i took that I really enjoyed was: Real Estate Market Analysis and Real Estate Investment & Finance. Looking back now, I can see how my education now ties into my full time career, of course back then I was not able to see this. I think getting your RE license is the greatest entry into real estate entrepenuership, but I recommend that you complete your undergraduate degree first then your RE license.

Getting your RE license is very easy, but building a sustainable RE business is not. From an education standpoint, the barrier of entry to become a commercial or a residential agent/broker is extremely low where one only needs a high school diploma. Indirectly, I have no doubt that my education has greatly helped me vs just having a high school diploma.

Are you a full time broker now? Did
Originally posted by @Account Closed:

Central pedigree might not allow you to reach your full potential. With a 3.2 a transfer to Broad or Ross at MSU or UofM is a real option and would increase your chances of landing a job with a blue chip company exponentially. Having a W-2 job will allow you to invest in real estate at a much higher velocity. food for thought.

0 Votes

All Forum Posts by: James Park

James Park has started 152 posts and replied 856 times.

Post: Planning for your child's future college expenses. Vanguard 529

Post: Planning for your child's future college expenses. Vanguard 529

Post: Planning for your child's future college expenses. Vanguard 529

Post: What is the best way to get into real estate after college?

Post: Good Schools ... Best Ways to Locate for RE Investing?

Post: Update to Signatures on the BiggerPockets Forums

Post: Texas - No income tax, but higher property tax. Worth it?

Post: Texas - No income tax, but higher property tax. Worth it?

Post: Should i drop out of college to be a real estate investor

Post: Should i drop out of college to be a real estate investor