All Forum Posts by: Randy Bloch

@David Barnett

Interesting point in using the real state professional statue as part of your rollover to ROTH. I am going to roll my 401k to a ROTH over time, but didn’t think about this

@Hart Pearson

Completely agree. I am about 15 month away from FIRE at age 47. Could I have gotten there quicker with real estate? Maybe....not sure...by time I figured out the real estate game I was already a high W2 earner and it didn't make sense for me to quit and go all in on real estate. So I have my 3 buckets of money and am quit happy. And like I said I like the diversification. When I quit working I am going to still do real estate, but diversify a bit more....hope to move some to syndication (passive) more aggressive returns, 1031 into some NNN (passive) conservative and the manage some STR that allow me to travel. I Will hold my 401k 100% in equities, the combination of these three will yield more than my current annual salary which is far more than I need to survive.

For others going 100% Into real estate might make more sense or combo it with real estate career like RE agent, mortgage broker or appraiser. However, if one chooses the combo and has W2 income I would recommend the diversification of an IRA or 401k. Just my opinion.

Regardless of approach...401k are not a scam as some have posted

I agree with @Mike Dymski and invest in my 401k for the diversification, match and tax benefits.  I am saving very aggressively so I max out my 401k and also save quite a bit in high yield saving account.  I like having my money in three different bucket:  tax deferred (401K), real estate, and after tax (ROTH and brokerage account).  This offers a lot of flexibility from a tax perspective when choosing where to withdraw money from.  Also, agree with Mike that there are ways to access 401k prior to 59.5, but I can also keep my 401k invested and growing till 59.5 and use real estate and after tax to live on in the meantime.  

I definitely do not agreed with the posters on BP calling 401k's a scam.   I have watched the videos and article they attach and am amazed that people believe this stuff....please someone explain to me how they are scam.  

I agree with @Mike Dymski and invest in my 401k for the diversification, match and tax benefits.  I am saving very aggressively so I max out my 401k and also save quite a bit in high yield saving account.  I like having my money in three different bucket:  tax deferred (401K), real estate, and after tax (ROTH and brokerage account).  This offers a lot of flexibility from a tax perspective when choosing where to withdraw money from.  Also, agree with Mike that there are ways to access 401k prior to 59.5, but I can also keep my 401k invested and growing till 59.5 and use real estate and after tax to live on in the meantime.  

I definitely do not agreed with the posters on BP calling 401k's a scam.   I have watched the videos and article they attach and am amazed that people believe this stuff....please someone explain to me how they are scam.  

Seems a bit strange, is this with like rocket mortgage? Or some automated underwriting system?

Was wondering how you feel about furnace inspections/tune up on you rental properties.  Do you do them annually? or not at all? 

I miss understood your point on the capital gains, seems you understand the personal residence capital gains exception. 

Everyone is saying it is a good idea to keep it as a rental. Do you have a desire to get into real estate investing? Answer this question first. 2nd run the numbers, what will be your cash on cash returns and total return with an appreciation assumption. You have a lot of equity tied up in this property so returns will likely be fairly low. Then decide if u want to invest in real estate for this return or something more passive like the stock market. You could also refi and then IRR will be better.

I'm not trying to talk u out of it...just trying to educate you on how make the decision. I invest in class A condos myself in Minneapolis and have done well with appreciation, cash flow is thin, because I am more leveraged, but overall IRR has been good. happy to answer any questions u might have. I am a big believer in that there is a decade long trend of people moving to more urban living in Minneapolis which bodes well for urban condos. The numbers don't work too well for new investments though.

This is your personal residence? There won't be any capital gains as long as you have lived there for 2 of the last 5 years. Do you want to be REI, decide this first.

You are in great position with your REI and on great path. I would think twice about making yourself so house poor. Why do u need a 700k house? I don't know where u live so just asking...where I live that is bit much, but obviously in San Fran or NYC that is nothing. I bought a nice condo to live in, Perfect location and just what I wanted, But it is way more than I really need to pay to live...I have significant more w2 income than you but still regret the 3k house Payment I have. It is slowing down my path to financial independence which is way more important to me than having a nice house. Now your priority might be nice house (happy wife) or good school district for your kids.....so it is all relative. It is personal decision.