All Forum Posts by: Mark S.

Offer submitted at price higher than suggested here (no disrespect to those who have contributed), however, one reason is the built-in equity that appears here. I will keep everyone posted.

$100 in real estate AND $200 in a 401(k).

I max out my 401(k) at $17,500. I also put $5,500 into my Roth IRA, although I'm getting to the point where I may no longer be able to contribute directly to a Roth and may have to go the back door route instead and convert. My company matches dollar-for-dollar on 6%. They also provide a cash balance pension plan where they contribute 6% of my annual earnings. I've always been obsessed with maxing out my retirement accounts, HSA, etc. Due to this, I'm quite a bit shorter than I want to be in after-tax available cash for REI. I'd prefer NOT to touch my retirement savings for REI, and to instead do so traditionally with after-tax cash. Even though REI returns can be substantially more than, say, stock market (by the way, I am young and nearly 100% equities in my retirement accounts), I would rather have the tax benefits, use leverage, etc., with real estate without having to touch these funds. That way, if things go wrong, I didn't sabotage my retirement accounts at the same time. I'm also starting to invest in taxable accounts and hope to use THAT (non-retirement money) for REI once I build it up a bit more.

Bill Bonds , if you were 64, I may feel differently, but at the age of 24, you could absolutely do better than 4.5% over the long term. It depends on the goal for the $50k you mentioned. Can you give us more details? It's hard to say exactly, without looking at the policy. Generally, for someone that's 24, unless you have a huge amount of surplus cash and have maxed out all available retirement plan options, etc., a cash value life insurance policy may not be what you're looking for. Don't get me wrong, they have their benefits, but it just depends on what you're looking for. As for annuities, most 24 year olds do not need an annuity. If you inherited millions of dollars that you were afraid to invest and wanted to convert that, or part of that, lump sum into a stream of guaranteed income payments, then you could possibly look at purchasing a SPIA or immediate annuity, however, this is fairly uncommon and can get quite a bit complicated.

Chris Stromdahl , not sure exactly what you're looking for, but I'm guessing liquidity with a higher interest rate than most deposit products are paying. I do not know you or your personal financial situation, however, I'll mention two things: 1.) High Yield Checking Accounts: I have a high yield checking account that pays me 3% on my cash (up to $10,000). You can have up to three of these account types with them. Yes, you have to jump through some hoops, but it's not too bad. Some institutions have more requirements than others. 2.) Senior Floating Rate Funds: this is not a deposit product, but an investment (via mutual funds). Yes, there is some risk, however, many people think it's worth the potential for higher returns. You can do your own research on these types of funds, but they tend to do well in rising interest rate environments. Depending on how long you can hold on, and what your view is on interest rates over the coming years, this may be a possibility. Most funds have liquidity after 1 year, but this can vary. Hope this helps.

I am seeking rental property located in Central Kentucky.  I am a new investor that will be financing the purchase.  Seeking 1-4 units under $125K with positive cashflow and minimal upfront rehab needed.  

Feel free to PM me if you have anything.  Wholesalers, show me what you got!

Off topic, but how much, on average to billboards rent for monthly? I know, I know, "it depends," but what are some ranges? Sorry to hi-jack the thread.

Aaron Pat , I am interested in learning more. I went to check out the website you listed and was surprised to see ROI percentages quoted based upon only rent - PITIManagement. Maybe, because repairs and maintenance are unpredictable, these cannot be factored in, but it seems a tad misleading. Please do not take offense, this is just what came to mind at first glance. Also, I didn't see anything regarding the cost of property management. What is the cost? Is this always or only when property is occupied? Is there a charge to place new tenants? If so, how much? If you're not comfortable posting on the forum, feel free to message me directly. However, I would imagine you'd enjoy the exposure if what you have to offer is competitive.

@Zack Dunn,

I am a new real estate investor, about to (hopefully) get my first rental property under contract.  Although I'm not sure about the answer to your question (I'm sure others will chime in), I may be interested in checking out your property management company in the future.  I plan to acquire many rentals and would really like it to be as hands-off for me as possible - hence, property management.  I'm in the Lexington, KY area.  Not sure what areas you're planning to cover.  Most of my properties would likely be within 45 minutes of Lexington.  Feel free to PM me to connect further.  Best of luck.

Thanks, all. Michael Noto , that is correct. I'll likely get $650, but figured I'd be a tad conservative. Also, I'll likely self-manage at first, but wanted to include prop mgmt for future.