All Forum Posts by: Account Closed

There's no real controversy, but there is a lot of confusion.

The situation Reed is talking about is a very common one with small real estate investors.

Holding assets in an entity can be a very important part of an asset protection strategy. I do not hold any investment properties in my name, never have and never will.

But, no matter what eneity you set up, if you are the one performing all of the functions an employee of the entity, you have negated much of the protection the entity provides.

If you are the owner of the entity and you take some action or failt to take some action, you absolutely could be held personally liable for your actions or inactions.

No matter how to choose to structure your holdings, having adequate liability insurance is critical.

I meant to include this earlier. These types of threads come up over and over again and the following checklist is really worth paying attention to when looking at something like this...

http://www.johntreed.com/BSchecklist.html

I promise I will now stop beating this very dead horse.

Well, we are going to definitely have to agree to disagree on this one.

The options available in a 401k aren't all that limited any more. But the biggest leverage is that it is tax deferred.

If the employer matches, that is an added bonus. But, if you run the numbers of someone contributing 15% of their income in an unmatched 401k verses someone who doesn't, the numbers are striking over ANY ten year period.

For every $1 you could've put into a 401k, you will only be able to put about 65 cents to work elsewhere. Then the profits your $1 in your 401k are tax deferred and will compound. The profits on your 65 cents in other investments is taxable.

The only time I would not recommend participating in a 401k is if you are heavily in debt or just hanging on by your fingernails. In all other cases, you are hands down much, much better off putting as much as you can afford and the law will allow into a 401k.

The other thing to remember is your possible IRA contributions are severely limited if you are eligible for any kind of employer sponsored retirement plan, whether you participate or not.

Originally posted by David Alexander:

This whole thing reminds me of the scene in the movie...

"The Princess Bride"

http://www.youtube.com/watch?v=TUee1WvtQZU

I'm done with this thread as it is...

I have been compared to many things, but I have never been compared to the Dread Pirate Roberts. I am most humbly honored.

You know it didn't turn out well for the Sicilian, right?

Damn! I just got all the coffee cleaned up from last night.

ROFL!

Originally posted by Brandon E:

On this foreclosure listing, the bank has clearly stated that it won't allow "surveys, inspections, as-is" blah blah; My question is for the bank to accept, do I have to make an offer with no contingencies or due dilligence?
I plan to get my inspector to just do a quick walk-thru with me but it would be AFTER the contract is submitted; If this is done, would backing out result in anything more than losing EM? Thanks - Brandon

You will need to do any DD before you make your offer. If that is there, they will not accept any contingencies.

Originally posted by Dan O'Connor:

On one side there are those who seem to believe that they know everything about real estate investing and there's absolutely no possible way that they may have overlooked even one iota or strategy.

Not even one? Really?

That's not really an accurate representation of what has transpired. I don't think anyone would disagree that David probably thinks this is new and innovative and no doubt some who take his course are blown away with what he presents to them.

However, just because David had an epiphany and learned something new by putting parts of a puzzle together in a new way for him; doesn't mean it is really new or different. Nor does it mean millions of people haven't "discovered" what he has over many thousands of years.


Yeah, again, not an accurate representation of what has transpired.

You admitted you have not read the thread and yet you are lecturing both sides based on suppositions and assumptions that are, shall we say, representative of your incomplete knowledge of what has transpired in this thread?

There is nothing wrong with him having a course to sell. Perhaps he is able to present this information in a way some can understand where they haven't understood from others before. That is a good thing.

It is a whole different story to claim he has some super secret technique that no one anywhere in all the expanse of time and recorded human history has ever been thought of before.

A toddler taking a paperclip and poking an electrical socket with it will "discover" that it hurts when you do that! That does not mean he has discovered anything previously unknown to the rest of world.

You must remember "Extraordinary claims require extraordinary proof" and he has certainly made some extraordinary claims in this thread and on other forums.

Amazingly, on another forum he says this in answer to someone asking about sub3:

Find buyer...

Find seller...

Put the two together.

Get Paid...

Later discussion talks about the "financing fee" and creating the note for the difference between the balance of the underlying financing and the sales price.

Owner financing, no matter what you want to call it, is not new and even with the "twists" he claims this is owner financing. The only difference is you never took the deed, just created a note and took a financing fee to "Get Paid."

Originally posted by Ralph Scott:

An unmatched 401(k)? What's the point?

As Jon noted, the only way to roll is to quit. Borrowing is allowed, but must be repaid, I think, in 2 years, so you won't borrow much.

I would shun a non-matching 401(k). Unless someone else can point out an advantage I'm not aware of, it's just a traditional IRA with limited investment opportunities (contribution limits and other minor differences aside).

Ralph

You can put more $, a lot more each year into a 401K than you can a traditional or even ROTH IRA.

Originally posted by David Alexander:

But, not by brute force...

Nope not by brute force OR slave labor. They were built by professional engineers and construction workers just like we do today. They had inclined planes (ramps :roll:), wooden cranes and trusses and everything.


Nope, I won't touch that one, you can't make me, you can't make me.


Now, the Molenator is absolutely real. He was a big part of Santa Clause 2, the Mrs Clause and we all know Hollywood don't lie.

Originally posted by MikeOH:

Sorry Taz,

Today has not been a good day for me. First, I let it slip that there are no SECRETS in real estate investing. Then, I let the guru playbook slip and lost my membership in the Tin Hat Society. Now, I've blown the SECRET about the Bigfoot; the Loch Ness Monster; and the pyramids. I guess a top secret, eyes only, CIA clearance isn't in my future.

However, in all fairness, you did blow the SECRET about the Sub 3. Can't blame me for that one!

Mike

Damn! There goes my hat.