LJ Posted February 21, 2019 Report Share Posted February 21, 2019 Even with consolidation, interest, and my scholarships... the grand total was around $176,000. The worst was the government loans. they started at $62k and then with interest they grew to $92k. I will be paying this shit back with reduced payments until im ~50 or so. The price of a B.A. by friend! Damn, that's what my wife paid for a DVM Quote Link to comment Share on other sites More sharing options...
Jewtoys Posted February 22, 2019 Report Share Posted February 22, 2019 Rentals if you’re looking for another job Quote Link to comment Share on other sites More sharing options...
Zx2guy19 Posted February 22, 2019 Report Share Posted February 22, 2019 I started with $30k when I got into real estate investment. 14 rentals, 1 AirBnb, 10+ flips and 1 flop later, I wouldn't make any change a single thing. Even the flop- was the most expensive lesson I've ever learned, but it taught me a lot. If he wants to talk to someone with actual experience, he's welcome to reach out. I see a lot of questions in here about managing them...there are seriously properties I haven't been to in 2-3 years. Same tenants depositing the same rent every month. I drive by them to make sure they're maintaining the exterior, but that's it. I have one house I haven't been to in over 5 years. Had some ceiling work done the other day and my contractor said it was in perfect shape. It's all about your processes and finding good tenants. The worst advice in here is paying off debt. That's not an investment. Quote Link to comment Share on other sites More sharing options...
Franchi Posted February 22, 2019 Report Share Posted February 22, 2019 Agree to disagree on the above (paying off debt part) as getting rid of basic debt is always a solid step towards long term financial success. But hey, if what are doing is working for you, rock it! :-) Quote Link to comment Share on other sites More sharing options...
Dharris89 Posted February 22, 2019 Report Share Posted February 22, 2019 The worst advice in here is paying off debt. That's not an investment. Paying off debt is an investment in you not necessarily an investment to make money. Start of long post (sorry) I recently paid off my house and am completely debt free. My mortgage interest rate was 3.125%. I know I could make more than that in the market but it’s a lifestyle choice for us. For me, since I am the primary support for my family, if I die, my family has a permanent place to live in a good suburb. Future plans are to invest further into real estate including flips and rentals buy we are going in with cash not debt. Unless it’s a big commercial property where my partner and I can’t cover it, we don’t plan on financing anything. Brad - It’s great that you’ve done well and I would appreciate picking your brain some time but for those with families, I don’t think paying off debt will ever “hurt” you in the long run. Thanks Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 22, 2019 Report Share Posted February 22, 2019 ..there are seriously properties I haven't been to in 2-3 years. Same tenants depositing the same rent every month. I drive by them to make sure they're maintaining the exterior Same lol. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted February 23, 2019 Report Share Posted February 23, 2019 Same lol. +2. Quote Link to comment Share on other sites More sharing options...
10phone2 Posted February 23, 2019 Report Share Posted February 23, 2019 I started with $30k when I got into real estate investment. 14 rentals, 1 AirBnb, 10+ flips and 1 flop later, I wouldn't make any change a single thing. Even the flop- was the most expensive lesson I've ever learned, but it taught me a lot. If he wants to talk to someone with actual experience, he's welcome to reach out. I see a lot of questions in here about managing them...there are seriously properties I haven't been to in 2-3 years. Same tenants depositing the same rent every month. I drive by them to make sure they're maintaining the exterior, but that's it. I have one house I haven't been to in over 5 years. Had some ceiling work done the other day and my contractor said it was in perfect shape. It's all about your processes and finding good tenants. The worst advice in here is paying off debt. That's not an investment. If you wouldn't mind, can you talk to what your 1st property story was like? initial cost, remodel budget, etc? You mentioned about your processes and finding good tenants... any insight into that? Yes I know those are in depth questions and I appreciate your time Quote Link to comment Share on other sites More sharing options...
10phone2 Posted February 23, 2019 Report Share Posted February 23, 2019 Paying off debt is an investment in you not necessarily an investment to make money. Start of long post (sorry) I recently paid off my house and am completely debt free. My mortgage interest rate was 3.125%. I know I could make more than that in the market but it’s a lifestyle choice for us. For me, since I am the primary support for my family, if I die, my family has a permanent place to live in a good suburb. Future plans are to invest further into real estate including flips and rentals buy we are going in with cash not debt. Unless it’s a big commercial property where my partner and I can’t cover it, we don’t plan on financing anything. Brad - It’s great that you’ve done well and I would appreciate picking your brain some time but for those with families, I don’t think paying off debt will ever “hurt” you in the long run. Thanks Kudos for you being a cash investor. Quote Link to comment Share on other sites More sharing options...
kirks5oh Posted February 23, 2019 Report Share Posted February 23, 2019 Depends on your level of risk you like to take Tons of good answers so far—reduce debt, pay off any credit cards, money towards mortgage After that, it’s up to you. I’ve done a fair amount of everything below Conservative route—municipal bonds. Pretty much guaranteed money, and you’re not taxed on this. Company 401 plan—our hospital matches up to 3%. This is free money, you’d be crazy not to take advantage of this if your work offers it Health savings account—this is tax free money taken out of my paycheck that I can use to pay health costs, and it’s not taxed. Any extra at the end of the year, i can invest. 529 college plans—life/enjoyment through giving your kids the opportunity to be better than you. Kids=greatest investment ever. Mutual funds—you get taxed on capital gains and have to deal with the fluctuations of the stock market Property/rentals—dealing with tenants, or have a rental company handle it for you. I bought a $65k hotel room next to road America 5 years ago. It’s managed by a rental company that takes care of everything. I have the equity of it being paid off, it nets me $2-3k per year, and I can write off all the fees/taxes/expenses/etc. I use the place a couple times a year and use the pool with my kids whenever I want. Vacation house—much bigger investment, but bigger reward if you rent it out. Again, using a rental company (Wyndham resorts) I don’t have to deal with people, repairs, cleaning, etc. all the rental income can be written off at tax time, and you have a cool place to visit when you want. Ira’s—this is a no-brainer. I don’t have the patience to deal with tenants so I’d never own a rental property without a rental company managing it. And I don’t have the expertise to deal with playing the market solo, or buying marijuana stock or bitcoin, or anything else that is not mainstream. I hate seeing losses, so I don’t typically do high risk things Quote Link to comment Share on other sites More sharing options...
Mensan Posted February 23, 2019 Report Share Posted February 23, 2019 This is the go to flow chart for how to properly spend your money to set yourself up for conservative investing. The upper areas are for everyone, then when it talks about more aggressive methods of long term investing, use the riskier ideas mentioned in this thread. Build your foundation first (i.e., pay off higher interest debt, have an emergency fund, etc.) https://i.imgur.com/lSoUQr2.png Quote Link to comment Share on other sites More sharing options...
Zx2guy19 Posted February 24, 2019 Report Share Posted February 24, 2019 Agree to disagree on the above (paying off debt part) as getting rid of basic debt is always a solid step towards long term financial success. But hey, if what are doing is working for you, rock it! :-) For sure- I mainly just don't like Grant. Paying off debt is an investment in you not necessarily an investment to make money. Start of long post (sorry) I recently paid off my house and am completely debt free. My mortgage interest rate was 3.125%. I know I could make more than that in the market but it’s a lifestyle choice for us. For me, since I am the primary support for my family, if I die, my family has a permanent place to live in a good suburb. Future plans are to invest further into real estate including flips and rentals buy we are going in with cash not debt. Unless it’s a big commercial property where my partner and I can’t cover it, we don’t plan on financing anything. Brad - It’s great that you’ve done well and I would appreciate picking your brain some time but for those with families, I don’t think paying off debt will ever “hurt” you in the long run. Thanks That's awesome you've paid off your mortgage- I will never do such a thing (I have 7 figures worth of mortgages), but again, congrats. However in response to having your family live a comfortable life, that's what life insurance is for. If I die tomorrow (fuck I hope not), those important to me will be more than covered for the rest of their life. All for the low cost of $137 a month. Same lol. ...you get it. If you wouldn't mind, can you talk to what your 1st property story was like? initial cost, remodel budget, etc? You mentioned about your processes and finding good tenants... any insight into that? Yes I know those are in depth questions and I appreciate your time It's kind of a long story, and there are hundreds of ways to get started, but I loaned $25k from my dad's credit card when I was 20 years old (and for what it's worth, my parents make a combined total of $50k a year, so this wasn't a rich daddy story). Bought a condo in Canal for $25k, put $5k into it and sold it for $65k the third day on the market. Paid my dad back (and all fees), had $28k left and bought another condo for $33k (I had to sell my Legacy GT and buy a fucking Geo Prizm to make it happen) and sold it for $63k...the only thing I did there was paint and new appliances. Flipped 2 more houses, lost my ass on one and panicked so I cashed out and bought 4 rentals. Refinanced them all and did it again. Refinanced it all and did it again. I follow the "BRRRRR" investment strategy. I was just featured on a local podcast about my story. If anyone is interested, here is the link: https://takeactionrealestate.podbean.com/e/episode-31-investor-brad-clarizio-does-it-all-rentals-flips-and-airbnbs/ Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 24, 2019 Report Share Posted February 24, 2019 Can anyone briefly explain about why you would want to put more/max into HSA? We are doing ~20% towards retirement now, split between 401k (what we need to match) and nearly maxing out Roth IRA via our investment adviser. Why would it make sense to shift, or in the future when we increase put it towards HSA? Note: We are far from maxing 401k contributions, and at least I can do traditional or Roth 401k. Quote Link to comment Share on other sites More sharing options...
Limitedslip7 Posted February 24, 2019 Report Share Posted February 24, 2019 Your HSA contributions are tax-free (like 401k contributions), distributions for health care are tax free, and all investment gains are tax free as well. I think you can typically invest anything beyond $2k in the account. My employer puts $1200 every year into my HSA and I've got it invested in index funds similar to my 401k. It's really starting to build up a decent balance since I've been lucky and haven't had to use it. I've got a high-deductible health care plan (is there really a low deductible plan anymore?) so if ever need it, which I'm sure I will eventually, I won't have to pay anything out of pocket. Quote Link to comment Share on other sites More sharing options...
Dharris89 Posted February 24, 2019 Report Share Posted February 24, 2019 My experience with my company’s medical program was unpleasant and they called it a FSA or flexible spending account. When my daughter’s braces bill was a flat fee every month it was very easy to use it for that. When the ortho decided to take a break it became a major pain. Any money in the account had to be spent by the end of the year. Then most of the receipts I turned in were rejected. I had to fight paychex nearly every month for them to approve the payment. At one point I submitted the same receipt three times. I finally wrote “go to page 2” and they finally approved the $28 claim they had previously rejected because they were too lazy or stupid to look at the next page. Bottom line just make sure you know what you’re in for. We saved several hundred on taxes but I’ll never use it again because it wasn’t worth dealing with Paychex. Quote Link to comment Share on other sites More sharing options...
Limitedslip7 Posted February 24, 2019 Report Share Posted February 24, 2019 HSA and FSA accounts are different Quote Link to comment Share on other sites More sharing options...
HotCarl Posted February 24, 2019 Report Share Posted February 24, 2019 HSA and FSA accounts are different My employer switched from an FSA to an HSA and its great. They only give $750 a year b/c I'm on an individual plan not a family plan. I use it for optometrist appointments, dentist, etc... and still save a bunch of money in it. In our plan if your balance goes over $3000 you can then invest it in mutual funds or some other investment vehicles of your choosing. And like someone said before, pre-tax money and if you contribute enough it can actually lower your taxable income. I have a friend that does this but I only contribute $20 a week. HSA you can roll over the balance to the next year, I don't believe you can do this with an FSA. Quote Link to comment Share on other sites More sharing options...
Dharris89 Posted February 25, 2019 Report Share Posted February 25, 2019 Got it. That sounds a lot better than my FSA. Thanks Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted February 25, 2019 Report Share Posted February 25, 2019 Can anyone briefly explain about why you would want to put more/max into HSA? We are doing ~20% towards retirement now, split between 401k (what we need to match) and nearly maxing out Roth IRA via our investment adviser. Why would it make sense to shift, or in the future when we increase put it towards HSA? Note: We are far from maxing 401k contributions, and at least I can do traditional or Roth 401k. Jesse, without me Googling an article for insight....I am curious with that much going towards qualified (retirement) investment, why not max out the 401(k) pre-tax first? Is it the investments in the Roth that are more attractive to you? Quote Link to comment Share on other sites More sharing options...
Widow Posted February 25, 2019 Report Share Posted February 25, 2019 Jesse, without me Googling an article for insight....I am curious with that much going towards qualified (retirement) investment, why not max out the 401(k) pre-tax first? Is it the investments in the Roth that are more attractive to you? I am assuming Roth is more attractive because he plans to be in a higher tax bracket at retirement , if this is not true he should max out his 401(k) first. Plus in a pinch, he can pull out any of his contributions penalty free( not recommended). Quote Link to comment Share on other sites More sharing options...
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