All Forum Posts by: Andrey Y.

I work with a majority of millennials, many of whom I encounter complain that they are not being paid enough to cover their living expenses so they split rent with 1 or more roommates. The living wage here in Raleigh, NC is $23,629 per person annually; this is about half of their $46,985 average earnings (at my job). It seems there is a perception gap more than anything. My thought here is that Millennials have normalized a lifestyle of heavy consumption which is unsustainable if seeking long term wealth.

I agree with many of the comments above, there is no question that owning a home is a better long term financial investment than renting. House hacking is a good starting point and I will champion this BiggerPockets PSA to my fellow millennials.

I've used Ken Lau to do my evictions. I almost needed one done recently on homeowner/residents in Ewa but got them out without any cash for keys - just the threat of being foreclosed on and kicked out on the street. I'm moving toward lease options - Hawaii might have some possibilities, but I'm doing them in Alaska remotely. Tenants pay on time because 1) I give a modest rent credit for doing so, and 2) they pay a non-refundable option deposit so if they play games they're risking a 5-figure loss.

There is an economic term called diminishing marginal rate of return. Meaning for every one more unit sold the benefit becomes less and less. With the rise in college tuition costs and the strong emergence of availability of online education and trade schools, at what point does a college education stop making sense? 

I went to college and I got my undergraduate degree in social work (although I started out in business). Then I went on to get a master's degree in social work. I believe my whole education cost about 40k (if you count up all of the associated costs relating to my degrees) and it took me 6 years. My first year out of college I made 40k which is high for a social worker, especially right out of school. After a few years I became a supervisor making 55k a year. A few years later I started and built a private therapy practice where my income is now well over 100k. So my return if it were calculated on a cash on cash basis would be 100% my first year and 250% now, however, I was making little to nothing during the 6 years while I was going to school. So if you divide it by the length of time it took me to get my education (I believe that would be the IRR) then after the first year my return over the 6 years would have been 17% per year. Of course with more time that rate goes up. Now my return from when I started college until now 17 years later (let's say for simplicity's sake that years 09 and 10 I made 40k, 11 and 12 I made 60k in years 13 - 19 I made 100k for a total of 900k over a 17 year period with an initial investment of 40k). So my new IRR would be 132% per year now. But what about the social workers who never go into private practice but work for local or state agencies and continue to help out the community but their income is averaged out at around 45k per year. Following the same scenario, their IRR would be 73% per year (45k x 11 / 17 / 40k x 100).

Now the expenses come into place such as student loans and interest on those loans along with debt accumulated during the time one is going to college even with the “bare minimum” expenses to live during college and after while one is starting out. So if the 45k a year is living pay check to paycheck and barely coving student loan debt, and after the 11 years since school you are not in much of a better financial place then you were when you started, was it financially worth it to go to college?

Comparing this scenario with maybe someone who goes to a trade school for 20k but afterwards is able to start making 45k a year starting year 2, IRR would be 113% after the second year and 150% after the third year and 169% after the 4 year, etc., with only 20k in debt to pay off. Now imaging professions that have a lot more debt for the required education. Does there become a point where it no longer makes financial sense to get a college education?

What are your thoughts?

So recently I've been incredibly excited about this new journey of REI. I've been looking at properties in the Indianapolis/Louisville markets and have found some places I'm interested in. No one in my family has any experience in REI and quite frankly have been very discouraging in their remarks about my goals. I'd love to start in a duplex/triplex/fourplex using house hacking, however when I tell family that I get looks like I'm crazy. Any hints/facts I can give family that would help them see the upside that is REI? Thanks!

 Hm. My post shouldn’t have offended you as the point of this entire thread is asking for opinions on Cardone Capital. I made a connection as to how I believe they both have the same personality type. But thanks for sharing your opinion/propaganda/emotion as well. I know people stand on all sides of the spectrum and I respect that. 

Thanks so much for your insight! This is just what I needed to read. 

I am almost done with his book "How to create wealth investing in RE" where in the introduction he states his goal is to "one day take my holdings to Wall Street as a REIT" like you mentioned. and in the very first paragraph of Chapter one he admits to mortgage fraud: "I put $5k down and got a loan saying I would live in the house. But by the time I closed the deal I changed my mind (wink wink) and rented the property..."

As of today, 24 oct 19, CardoneCapital  has a very long negative review that was rated as five star. It was someone that had previously given their rating of 1 star, where it obviously wasn’t posted, so they rated 5 stars and their negative review was posted.

After watching just a few YouTube videos I’ve seen stuff that doesn’t make me trust him too much. For ex, I just finished watching a video where he goes over a deal. He’s multiplying 10x600x12 and he says it’s 84,000. A voice in the background says “no, it’s 72k.” Grant is adamant it’s 84k. GC uses the calculator and still says its 84k! Then does it once more and after realizes he’s wrong, writes 72k and says to the person who said the correct number all along “it’s 72,000, what’s wrong with you?” To which the voice responds “you’re right.”

This may be super super small. But that type of mentality: not admitting when you’re wrong, sidestepping when you’re at fault and in return putting someone else down sounds like 1) our president and therefore, 2) not someone I automatically want to give my money to. 

1.  Pay off my mom’s student debt.  She got her doctorate from an Ivy League college.  She’s mounds in debt.  She’s an OG that makes a ton of sacrifices.  

2.  Give my dad a solid way to retire.  He’s been a cop for a long time.  He’s always been a bad spender.  Hopefully I can help mitigate that with some extra monthly cash flow. 

3.  Teach my brothers how to invest.  That way, whatever they do, they have their own insurance Incase anything goes south with their regular jobs.  

4.  Create a legacy for my family name.  I want to build something great that keeps growing long after I’m gone.

@Scott Blackwill my comments come from my background of working with a lot of RE investor clients in my tax practice.  I currently have SF and smaller MF investments so completely understand your thinking on this.  I just want to point out that they are different business models and both have their positives and negatives.  The older I get (turn 35 next month lol) the more I value time.  Someone scaling a smaller investment portfolio is not going to create time, they are going to create a full time job.  I have several clients who have done this to themselves, they are happy and excited about the growth but they are creating more work to manage.  You can try to process up but it isn't as easy as it seems.  For this reason I don't want 75 properties to manage and I don't have goals based on number of doors.  My goals are on cash flow and creating time for family and other more enjoyable areas than property management.