All Forum Posts by: Tony Kim

 It'll cost around 38,400 to sell anyway. Just keep it if you're going to come back and live in the place after 4 years.

My company has a plan whereby we are able to take a portion of our year-end bonuses in the form of an employer contribution to your 401K. This enabled us to put in 55,000 (combined employer and employee contribution) in our 401K. Over a period of two decades or so, I can see how this can really set someone up for a comfortable retirement. Unfortunately, most companies do not offer something like this.  And a lot of people aren't eligible for a solo 401K or whatever the other plans are that allow for higher annual contributions. If you're limited to 18K or whatever the amount is in a typical 401K, along with the very limited type of investments that can be made, I would limit my contribution in an amount that would maximize the company match. That is, of course, if your goal is for financial independence as soon as possible.....not when you're 59 1/2 years old.  This is exactly what I've done my entire life and I've also emptied my 401K twice (this part, I would not give my wholesale recommendation. Only do it if you're sure you've got a great opportunity). I basically double my money thanks to the company match and once I'm vested, I withdraw everything and use that toward RE purchases.

30 years? My goodness, if only I were that lucky. If anyone has owned a home in the west coast for the past 30 years, 2 HVACS, 2 water heaters, 2 roofs and any other things you could throw at us would be peanuts compared to the tax-free capital appreciation you'd get from your primary residence. The $500K exemption might not be enough for a lot of people...

Whatever you do, don't pull equity from that prime La Quinta property to invest in C or D class property in the Midwest. I would even be cautious with properties labeled as B class from the folks trying to sell you the property. Do your research, take your time, define your goals. There is no rush....... much better to do nothing than to make a mistake. Also, realize that CA newbies and their "what should I do with my money" mentality can be somewhat of a target here. If you buy turnkey, just know what you're getting into. 

By any chance, do you qualify for the definition of an accredited investor? Acquisition of properties in Los Angeles, while probably good in the long term from a capital appreciation standpoint, would make me nervous right now simply because of where we are in the RE cycle. For this reason, I have stopped looking for properties to purchase (but will keep my existing LA properties) and have started to put my money into syndicated deals and investment funds that are a bit more conservative and by their nature (i.e., hard money lending, litigation settlement funds, etc.) might hold up better in a downturn and aren't correlated with the RE market. 

By the way, I tried living in the valley because I was enticed by the lower home prices, but that experiment only lasted 2 years. If you are used to the paradise like weather of the Westside, the summers in the valley will be a difficult adjustment. I moved back to Wilshire Park two years ago and am loving it. 

Sorry for the thread hijack, but did you see Josh Thompson's response to the white coat investor's criticisms of the infinite banking concept? I'm still trying to educate myself on this concept...the problem is that I haven't been able to find any website or youtube video that will properly explain it. There's plenty of talk about how great it is, but there are never any details. I need concrete details on how long it will take for the policy's cash value to catch up to my contributions, etc.

Based on what you wrote above, I think there are deeper issues at play here. You obviously have no respect for her when it comes to financial responsibility. Don't mean to be harsh, but I would never talk about my wife like that in a public forum... even if it is a relatively anonymous medium. 

Also, if she were to read your initial post, do you think she would agree that you painted an accurate portrayal of the issues at hand? I would bet that she would say NO and that she would also have plenty more to say on the issue. 

And to answer your title question, the answer is yes.... you should get a W-2 job. Either that or give her an equal say in how all finances are treated.

I took a peek at your website.  Looks very nice!  

One thing I noticed is that it states in the FAQ section that house prices have taken a huge hit in the past 5 years. Was that intentional? 

That's great. How many distressed properties have you prospected? You seem to have good writing skills so I'll bet you will put together some very nice verbiage for your mass mailings. 

If anything, I truly admire the fact that you were willing to expose yourself and post your bold plans here on BP. I believe that one of the biggest impediments to success is the fear of failure or being criticized or worrying about what others will think. And based on the way you tried to answer as much as you could in this thread and the way you acknowledged that you were still working out some of the details of your plan, I don't think fear will impede you. And this is important when working in an area like this where networking is so crucial. You're a lot braver than I am and I would fail miserably as a wholesaler. But you have a history of success and nothing was handed to you. I'll be following you and wish you nothing but success. 

Based on the way the question was written, I'm guessing you and your husband blow the MAGI limits out of the water. The short answer is yes, all your deductible expenses borne from depreciation can be carried forward indefinitely until you either sell the property or until you start earning net income on the property.