All Forum Posts by: Mark S.

@Katy Poulton, Spend a few dollars on an attorney and tax advisor upfront.  You’ll need them eventually.  Not doing this now could cost you a lot more (not to mention the headaches) down the road.  If you can’t afford to do this, maybe you should reconsider your financial ability to get into real estate right now.   

@Lana Friedland

I did and did so with quitclaim deed. The title company claims title insurance is still intact. I transfer to my single member LLC. Who told you it's invalid? Is your LLC single or multi member? Maybe that's why?

One of my friends is getting divorced. She and her husband currently still live in the home. Both of their names are on the deed but only her name is on the mortgage. She is wondering how to remove him from the deed incase he stops contributing since she is the only one on the mortgage. What rights do each of them have? My friend will be seeking legal counsel but trying to seek advice beforehand. Property is in Kentucky. Thanks.

1.) Park Community Credit Union in Kentucky.  

2.) Other credit union in Kentucky, I think out of Frankfort.  I honestly can’t recall the name because the person I spoke with was pretty much a waste of an individual that stopped returning calls/emails, so I just gave up and decided 99 bips is worth building a relationship with an institution that I already do business with and may need to get a portfolio loan or something from in the future. 

@Javier Marchena

This! I am also planning a two phased retirement approach. Currently, probably about 65/35 REI/marketable securities (100% equities, no bonds).

Next 5 years: scale rentals with leverage.  

Following 10 years: pay them all off. 

During this 15 years: continue high-earning W-2 position, max fund retirement plans (primarily Roth contributions), take advantage of employer match, etc.

“Retire” at 50 and live off passive income from rentals. Pursue passions and generate a little income that way, but with no pressure.  

At 60+, use retirement assets as fallback / healthcare buffer / etc., as needed. 

@Victor Robinson,

Lots of good opinions on here. I would make sure you have adequate reserves (not only for PITI, but also cap-ex, maintenance, vacancy, etc.). You should be setting aside a portion of the rents each month for this. Once you have a level of reserves you're comfortable with, then look at how the car payments affect your ability to further leverage rentals (assuming that's what you want to do). The rates are good, but do the payments negatively affect your DTI to the point where you cannot qualify for another loan? If no, consider keeping the vehicles and continue to make payments. If yes, get rid of the loans. Either way, take a look at other options for less expensive vehicles and proceed accordingly. Only you can make that call. I have a similar dilemma with my 1.74% interest car loan with $680/mo payment. It's almost paid off, so doesn't matter much now, but I often think about whether or not I could have bought a less expensive car (obviously I could have), but would I have been happy with that (probably not). Did it stop me from acquiring rentals with leverage? No, so I kept it. Not so sure I'll do that in the future, but you live and learn.

1.) Build an emergency fund

2.) Pay off all credit cards, if any

3.) Get full employer match

4.) Max out Roth IRA

5.) Live like a college student as long as possible

@Kyle Wells

Exactly. I never have, and never will, manage my own properties. Factor PM fee into your numbers and do better things with your time than be a landlord. I’m a property owner, not a landlord. Big difference.

Yup.

@Jessie Nunley, thanks for the kudos.  I’m with you on the retire early at 50(ish) plan.  I go back and forth, but my thoughts at this point are that I’m planning for a two-phased retirement:

Phase 1: Continue to build up turnkey real estate portfolio (also do some syndications, etc.) and have that cover my basic living expenses in about 15 years.  In the mean time, I’m focused on reducing unnecessary expenses, increasing savings rate, and continuing to build assets (both retirement plans, rental properties, etc.).  At a minimum, I’m thinking to scale up to 10 SFRs over the next 5 years and then (possibly, this is what I am always debating) killing off those 10 mortgages over the following 10 years (ROE is low, but cash flow should sky rocket).  Then I can focus on passions, etc., for a little additional income.  

Phase 2: At traditional “retirement age,” I will have the option to take distributions from qualified assets I’ve built up over the years that will have compounded nicely over multiple decades.