All Forum Posts by: Tushar P.

What kind of IRR are you expecting after 5 years? Is it better than hands-off investments like the stock market and real estate syndication?

It was very common just before the financial crisis in 2009. Just google 2009 financial crisis, MBS, negative points, etc

@Gabriel G. great job asking for feedback. I think you may struggle with 1 and 3. What you mean by high paying W2 job can be a relative thing, but if you get a high paying W2 job then you will find that you will need several hundred doors for the cash flow to replace your W2. Once you have several hundred doors, it’s not going to be passive (I don’t think it will be passive with just one door either). Which means you may be putting as much effort (if not more) than your W2 job. That is fine as long as you are passionate about managing and growing your real estate business.

It comes down to being passionate about what you do. Passionate enough to persevere, never give up, and become progressively better at what you do. If you spend your 20s dreaming about retiring at 30, then you may not become good at or passionate about anything. You will get a high paying job if you are good at something and have a passion about your work. No one will offer you a high paying W2 job for hanging out so that you can retire at 30.

I don’t think people become financially independent early in life by doing something half-heartedly. They become financially independent “while” doing what they really like. By the way, being a millionaire may have been a big deal in 1920s, but we are in 2020 now. Though I know some folks from FIRE community are content to live as students for the rest of their lives and $1-2k/month income makes them financially independent.

I personally invest in real estate only for diversification, and I see real estate investing as a capital preservation strategy rather than capital growth strategy. I think it should be clear by now that I am not really into real estate with all guns blazing. But I am disciplined enough to passively invest in real estate for the sake of diversifying my risks. Anyways, this is just my opinion - you need to find out what your passion is. Good job if you know already that it is real estate.

Looks like the sellers agent was working for you and got you a great deal that you couldn’t have gotten yourself! Why not give him the credit that he deserves 😉

It’s totally possible to use the cash flow from any investment (real estate or otherwise) to live a middle class life, as long as the investment is at least 5-10 MM$. But those who have 5-10 MM$ to invest are not looking to live off the cash flow from the investments - they have enough cash holdings and other income streams to keep reinvesting the cash flow.

Though I’ve heard the folks from FIRE movement can live off $1k/month since they are happy to live as students forever.

If the landlord knows that a crime was committed in their property but doesn’t report it to the law enforcement, can they get in legal trouble when it is found out later that the landlord didn’t report the crime?

Can realtors share what's the profile of the majority of the sellers - builders/investors or home owners who were hesitant to put their homes on the market at the start of the lockdown (creating low inventory)? Or are home owners back to take advantage of the bubble? I read somewhere that NAR has called the current situation a bubble which is expected to pop in mid/late 2021 or early 2022.

I guess it’s a good time to sell, especially for home owners under forbearance. Just like how airlines were waiting to lay-off staff after sep-2020, banks and investors are supposedly waiting to capture the equity in homes when the foreclosures start. The govt can always print trillions of dollars again though...

@Adam D Rinehart what area/zip is this in? Northeast part of the inner loop already has newly built turnkey duplexes (3/2.5 each) going for $275k. But that area, although inside the loop, is probably more risky than sunnyside or acres homes...

Can you not just represent yourself or get your own real estate lawyer?

@Brian Nel good for you for not using a realtor. I guess even if someone uses a lawyer ($150-200/hr), the cost will be less than 3%. And that would also provide a counsel with no conflict of interest.

So what’s the point of using a realtor for someone on biggerpockets (assuming people on Biggerpockets are savvy)? Not enough time to find deals?