All Forum Posts by: Sam Yin

I second this post!... Mostly... This is probably one of the most informative response in a while. 

Not knocking on you Henry, but as a Vet myself, and I do agree people should join the military as it provides so many benefits in the future, I also feel that sometimes even the core training of the military will not stick with everyone. People have inherent personalities and traits that are difficult to change. The military will make many people much more resilient and courageous, but not every soldier. At the same time, it will provide every soldier the same future financial benefits, but not every soldier will take advantage of it. Even when it is fully explained, an individual must have the courage to take the plunge and jump off that cliff.

I would like the note #5. For any first time vet on the fence, reread the last 2 lines of #5. I  personally did not do that, but I wish I did!!! I was in the military in the mid 90s, a slightly different time with zero Internet information and the world was very active.

@Charles Granja

@Charles Granja please do return and continue to post. It's the dialogue that will add the greatest value to this forum.

Yup. I get it. It not for everyone, but it was/is for me. Looks like it was/is for you too.

Im living it and enjoying it. My routine, 1-2 hour breakfast/coffee with my buddy. Then 2 hours at the gym. Followed by taking the wife out to lunch. Now about to pick up kids from school, feed them, and off to Jujitsu. Might hit the gym/sauna again in the evening with a friend. That's what the REI grind provided when people said it was a bad time to buy. And trust me when I say this, MANY people told me it was a bad to invest in RE and "bad timing" MANY times over. I was too stubborn and I just did not listen. Thank goodness! Because they are still at their 9-5 by sheer necessity.

Seriously though, there is no true right or wrong. It just has to fit for each individuals lifestyle and expectations. Buying businesses and buying into the stock market can be just as lucrative and I respect those that do it. I just happen to chose REI for the monthly cash flow rather than stock dividends and valuations.

Hi Bruce, very neutrally posted, and wise. I respect you for that Bruce.  I totally agree with the perspective. Interest rates are not high. Prices are still low. And deals are out there and flying off some shelves. One only has to actually look. I see deals everywhere, I just whish I had the capital, the time, and the motivation to grab them all. I'm just in a cruise mode at the moment.

Just as what makes a man is not his age, but his experiences, the same applies to real estate. For some context, I'm Gen X. And as such, I have come to understand that some people are just not made for REI, all the time. Where there's a will, there's a way. But it takes WILL, and not just skill, to find the full benefits of REI. Assigning a risk for comparison between two totally different asset classes is not wise investing. This is especially true for REI. And it appears that there is a lack of WILL to find and make deals happen.

Take a moment and think about this... Staying out of the market just because you feel the easier path is in the stock market can hurt you in the long run, if you want to be in REI or use REI to achieve FI. One big difference is leverage. And that's a BIG difference. To get that leverage, as you grow, or aspire to grow, in REI, will require a resume. You just wasted a few lines on you resume because you feel it's safer in the stock market for now. You will destroy so many opportunities for future growth. That resume will determine your future.

Prime example, buy a few lower than desired cash flow properties now and into the next few years vs. investing in a good yielding stock/fund at 7-10%. Now, fast forward a few years and both people are in REI. Who do you think will excell in REI quicker? The guy in the trenches, or the newly minted stock holder with higher cash money? Let me be more clear, who will the lender trust with their money? The guy with a resume, or the guy with $ and stocks? One guy will be able to jump a few times higher than the other.

I would not be able to cruise with just a few years of REI, had I not put in MAXIMUM EFFORT. But it also had to be deliberate moves and a better understanding of real estate. It was all done before I discovered the forum or BP. It comes from experience.

Experience is earned, not studied or debated. But then again, I defer back to my foundational theory... what's your risk tolerance? How much WILL power do you have? Opportunities will always present itself, but only YOU can dictate the EFFORT you will put in for your desired outcome.

@Nathan Gesner

Set parameters early on. Create a rough list of what you will respond to right away, and what can wait. Response time should be reasonable, but not immediate. Train the tenants to understand that you have a life as well, or else you be taking on another job.

The biggest one... Limit the DIY. find a way to transition it to contractors/handyman. You can still self manage, but repairs should be hired out if possible. I did a lot of work myself earlier on... I mean just about EVERYTHING, minus brazing in new copper lines. It was not worth my time. DIY, but don't DE(verything)Y.

I made many mistakes early on. I got to know tenants and was way to accommodating. I responded to things that I could have made them wait until it was convenient for me. I did not have standards to hold them to. These are all lessons learned early on.

Create standard templates early so you save time when similar issues repeat themselves. Rehearse your approach and conversation so you know when to guide the conversation to a predictable outcome.

@Chris Seveney

I was going to use your first and last line, but you beat me to it.

DITTO! High energy in your post, but tread carefully.

 Its always a good feeling to be in control and have draw the line for potential buyers in case you need to take it back. I think they just do not realize that you are looking out for YOUR property as long as you are carrying.

Congrats on the 17 years. That's a good run for a Lux life with HH.  When I got married, I did keep my roommate. I wish I did because she got use to not having any roommates and refused the idea later. There were 3 rooms and 2 bathrooms I forgot I had for 3 years.

@Steve Vaughan when I look back at the time I did it, I was at the age of modern day Gen Zers ... Many of my age at that time did it. We just did not have the Internet to go around shouting about it.

Heck, my favorite TV shows thought me. The Facts of Life and Threes Company. They just called it roommates.

@Anthony Swain

I think that the proliferation of the Internet, quick exposure to information, AND the fact that people have adopted the name "house hack" is the only reason we talk about it today. It's now a focal point of articles since it's a sexier subject than just plain old getting some roommates.

It's been around as long as real estate has been around. I gotta believe it's been around hundreds, if not thousands, of years. I was the "roommate" when I first moved to the US. Then I became the guy collecting the check long before the term house hack was coined.

 After reading Act 60 more thoroughly, you do indeed get some immediate benefits if you become a resident in Puerto Rico. Mainly, capital gains tax at 15%. But you have to be there 10 years consistently after obtaining the proper residency and approved permits AND meet the annual donation requirements, THEN it will be reduced to 5%.

However, after reviewing this again,I feel all the other details associated with Act 60 is not really worth my while. But it may work for some. You just need to look deeper into it. Valuations prior to establishing residency is tax at different rate. Thus moving there and selling that year or the next is not very beneficial overall.

my 0.02