All Forum Posts by: Randy Bloch

George, my post was not directed at u.  Also, I originally did not read the details that you just reiterated, which is very good info.  But even if a person has until their tax filing to repay...if they have a 50k loan, this might not be easy?

Are you saying that a person should not consider long term employment with their 401k employer before making this decision?  I want to make sure I understand your point as I considered taking 401k loan in the past and have decided against it for this reason.

please read his question, he is not looking to invest in real estate, but buy a personal residence.  These are two very different things.  how does a syndicator help this???

Get your logic on the stock market and the chance for it to go down and earning 1% above prime is not bad....but is it a good assumption that Bay Area real estate only goes up?  Buying a property with high leverage could also result in a huge net worth hit if prices fell.

There are two thing you need to analyze

1) are you comfortable enough with Bay Area real estate prices to buy?

2) if you buy and house hack how much more can you save per month versus current rent situation?

How much will you need to borrow from your 401k? This amount an answer two will tell you how long to pay back the loan.

Also, how secure is your job? If stock market tanks it most likely be because of a recession and people lose jobs in recession.  As previous poster mentioned 40lk loans are due on upon leaving your employer.

@John Banaski

As someone who made several post pro stay in school....I agree with John that school is not for everyone. If this is the case, learning a trade or project management could be another good option. Some people are overlooking the value of having a good W2 paycheck to accelerate you REI and making money as real estate agent at the age of 20 is not that simple.

@Sam Battaglia. Great posts Sam. And sound advice for young people.

It doesn't have to be mutual exclusive. I house hacked in college at 19. you have to have certain level of maturity to handle responsibility to manage college, house hacking and work at the same time. These are life skills. There are things u learn from W2 job as well. And I would have liked to learn the in/outs of commercial real estate using my company'sdimes versus reading a book. You can read 10 books and do it on your own and have some costly mistakes. Obviously, I'm talking about something a little more complicated than buying 1-2 SFR or duplex. But your right, it is personal, and to each their own.

Agree, it is not that hard to make 45k without a college education, but respectively disagree with the idea that there are not people who are successful in real estate that regret getting a degree. I will reach FI next year at 45 and made half my net worth from real estate and have from W2, and am glad I got my degree. If I had to do it over I would have concentrated on real estate in college and sprinkled in some classes of finance, urban planning or construction. My degree is in finance and it has served me well for life financial planning and real estate. I wouldn't be reaching FI at 45 without my degree. Would like to get more involved in commercial real estate and it is bit more complex than residential and some real estate classes in college and going to work in that field would have been great experience to REI on the side. Like someone said ealier, it is a personal decision...but for me I would still have have gone to college

@Dennis M.

Could not agree more with the thread. Best carpet is no carpet!!!!!

@Eric Veronica

Lots of great advice on this thread, especially this post by Eric. Let me add a couple thoughts from someone who has had a similar debate in my head.

1) real estate investing with a solid W-2 earning is lot easier than without.

2) college is about more than a piece a paper. You will mature, grow your network, broaden your horizons and learn how to think.

3) Having options in life is good. Financial independence usually comes with developing multiple revenue streams and a conservative lifestyle

I would say stay the course. House hack during college, buy a place and get some roommates. As someone who knew after college they had passion for real estAte. I am happy I got my degree and would not have changed that if I could go back.

Randy

I would say you need to get aligned with your wife on goals and objectives. Buying more properties with leverage has some risk.... if you buy all cash and are good property manager then that is conservative approach...she might not see it that way though.  Some people hear rental property and see all risk and some see security, depends on mindset.  Financial advisers might be able to get aligned on goals...but most wont understand real estate and will recommend u liquidate and invest with them in stocks and bonds.     I would highly recommend fee only advisor and find one with real estate experience, easier said than done...I’m looking for the same .  

Thanks Paul...I think you misunderstood, I want to pay someone to tell me I am crazy   :) I will connect this summer

Randy