All Forum Posts by: Kyle K.

Rich,

Could you elaborate on this Irrevocable Family Trust issue? My understanding is that trusts offer no liability protection. I'd love to learn about another possible layer of protection.

You hit the nail on the head. I think most people getting significantly more than the "1% rule" are purchashing properties in undesirable areas with suspect tenants and built-in functional obsolescence.

10% yield on equity, huh? It seems to me that obtaining a 7% yield in good areas (read: quality tenants) is more likely. I'm thinking it will take roughly $2Million (free and clear) to obtain my goal.

Not easy, but definitely attainable.

Yeah, fairly lofty but certainly not unattainable. I know I can get there; the question is, do I want to work as long as necessary to get there or would I rather enjoy financial freedom earlier with a smaller residual income. These are the real life questions.

$150K annual passive income.

Can anybody recommend a CPA in the Chicagoland area that actually knows the ins and outs of real estate investing?

It's a popluar state with high Cap rates that most believe is the key to Cash Flow. It's also cheap.

No matter the market, there are always deals to be found. So, as Rich said, buy great deals. Great deals should allow for a substantial amount of appreciation (15-25%) within a realatively short amount of time (2-3 years). [also note, I'm not talking about single family residences whose values are far too subjective for my tastes-- I'm referring to residential income producing property].

No one is going to be able to substain those high rates of return (appreciation) year after year-- at some point they will level out and provide you with an avearage return...which is fine if you're satisifed with average.

What I suggest is that you sell your property after a relatively short holding period (with a substantial return) and do a 1031 exchange into ANOTHER great deal with the potential to earn another 15-25% return.... see where I'm going with this? You're able to accelerate your gains by employing this strategy. This is certainly a little tougher to do, but it is a more lucrative strategy.

And never pay tax on capital gains! Keep doing those 1031 exchanges and, as Rich mentioned, funnel those properties into a trust for future generations.

i think we absolutely need health care reform-- or more specifically, health care insurance reform. Our system is seriously flawed, but the current health care reform bill is a joke.

What we need to do is break down the barriers that prevent a truly free market for health care insurance. Then, we need to make some elementary-leven of health insurance mandatory (like liability auto insurance). Of course, you can only do this after a truly free marketplace for health care insurance exists. That way we can get some competition going. We all know anything the government touches is not efficient.

However, I'm not for the idea that government should be COMPLETELY removed from health care. There needs to be some basic, minor level of regulation (to keep the free market machine running smoothly). That's why we have good capitalism here in America vice the bad capitalism in a country like Albania.