All Forum Posts by: Scot Howat

That is 100% fraud.  DO NOT DO THAT

Buy conservatively, and make sure you have cash flow.  Equity is nice too.  Luckily in the lower priced house ranges around Chicagoland the rents don't really go down.  They're pretty flat.

Having your real estate license is just another tool, you have to know how to use it.  It does cost a lot to maintain it, so you'll have to do at least 1 deal a year to pay for it.  Personally, I don't think it's necessary.  

If you're interested in fix & flips then you'll probably be buying at the auction anyways.

Welcome!

What part of Chicago are you in?

Ok cool.

@Derek Tellier

I'm not saying you should withdraw, just that real estate could be more lucrative.  You could take a 401k loan (not withdrawal) and use that towards the purchase of real estate.  Then you've got both!

If you're putting in 5% and your employer is putting in 4%, then your employer is funding ~45% of your retirement.  If you bought a bad rental property and ended up netting $0 profit every year, then your tenants would be funding 80% of your retirement (assuming you put down 20%).

Would you rather take the 45% contribution, or the 80% contribution?  

And we all know, that if we cost effectively manage and maintain our portfolio, then the tenants will end up paying for more than 100% of the property (over time).

I should clarify though, my 100% HELOC bank was for a primary residence (not investment property)

Condo's work out way better in this area.  It's all about the net.