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Financial Freedom Sooner Rather Than Later
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#11
Family Finances / Re: How much did you spend on ...
Last post by Shredder - April 25, 2022, 07:38:02 PMWell... I spent a $1k for every year that we were dating prior to getting engaged. Ended up spending $9k
#12
Real Estate Crowdfunding / reAlpha
Last post by Mobius - January 28, 2022, 10:53:34 AMhttps://invest.realpha.com/
Has anyone invested in / done additional research on this company?
Website is... flashy and their claims/hopes seem very aggressive.
The old fake it til you make it tech type mentality.
I do like the idea but without more data, it's been impossible for me to get a good feel for their model.
Has anyone invested in / done additional research on this company?
Website is... flashy and their claims/hopes seem very aggressive.
The old fake it til you make it tech type mentality.
I do like the idea but without more data, it's been impossible for me to get a good feel for their model.
#13
Managing And Investing In Physical Real Estate / Help in figuring out my next m...
Last post by Kalliste - January 23, 2022, 07:02:53 AMHey forum, I have a family of 3 and potentially leaving TX for Europe (France) this summer. I have a house paid for with 11K$ of taxes that could net 1300-1500$/month (rent-property management-maintenance-taxes-etc) if rented. I could also sell into the market for say 500$-530K...My house is about 16% of Net worth. I plan to rent in france for a while until i find the right place (2-5 years probably). I have about 600K in other real estate investments as well in US (multifamily, hard loans, mobile homes, etc), rest is stock market in tax deferred and after tax accounts.
My Pros and cons of renting vs. selling
1) Pros Renting
- Cash flow positive
- favorable tax if i reside in emea
- continue long on real estate trends in US / TX
2) cons
- Wil get taxed big time when I sell and cannot get 250/500K tax waive for primary home
- maintenance. In TX, lots of issues (tornadoes, wood house not as strong always need maintenance) and thus will be quite complicated to manage from EMEA ( i would dread having to talk to insurance company if something wrong with my roof/pool, etc)
- sell now and i get the cash and can try to deploy in other investments
How should I think through this decision?
Thanks for the pointers.
My Pros and cons of renting vs. selling
1) Pros Renting
- Cash flow positive
- favorable tax if i reside in emea
- continue long on real estate trends in US / TX
2) cons
- Wil get taxed big time when I sell and cannot get 250/500K tax waive for primary home
- maintenance. In TX, lots of issues (tornadoes, wood house not as strong always need maintenance) and thus will be quite complicated to manage from EMEA ( i would dread having to talk to insurance company if something wrong with my roof/pool, etc)
- sell now and i get the cash and can try to deploy in other investments
How should I think through this decision?
Thanks for the pointers.
#14
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by Allover - January 12, 2022, 09:06:16 AMHello and Happy New Year.......
RS and the successor company continues to astound me by reaching new levels of incompetence. What a pack of nitwits that got skelled by a pack of thieves.
Speak to you attorneys : the people on the board of directors should have had what is called Directors and Officers (D&O) coverage. Plenty of president for people suing directors and officers of companies that sunk and getting pay outs from D&O coverage. After all, if the Federal Govt can put Charles Keating in PRISON for being a bad banker ( S&L Crisis).....then we should be able to get a settlement from the D&O coverage.
Speak to anyone you know with a badge. Even if its a local player cop in your part of the world. They can move it up the line. Ambitious prosecutors are always looking to make names for themselves. Sad but true. Only when people with badges start asking questions are we ever going to get in any real answers.
Regarding my investments at RS : What a goat rodeo. As I have mentioned before its just too coincidental that these people could lose money on real estate in both FL and CA.......during the biggest real estate boom in the history of this country.
I have basically "written off " the $$ that I gave them. I might get a few pennies here and there.....but I doubt it.
Hard earned......easily lost.
Ultimately : the fools at RS and the crooks that hosed them will have to answer for their sins. I have found in life that people always " get theirs" in the end.
I wish all of you the very best of luck.
#15
Financial Advice From The Community / Reader Profiles / Re: Pay down debt or save? Int...
Last post by aILaGend - January 08, 2022, 06:47:42 AMQuote from: Irish247 on June 16, 2020, 09:14:00 AM
This decision was probably made long ago, but I'm confused on the 8.3% personal loan. Why don't you get a different cheaper loan and knock that down? You could use the additional funding to lower the gross value and maybe leverage your house with a HELOC to get a better rate. 8.3% seems high to me...
Hi! Thanks for your comment!
Yes, you are right. The interest rate seems high, but that is the best I could get. I live outside the US, so interests are higher relative to the US
#16
Financial Advice From The Community / Reader Profiles / Re: Pay down debt or save? Int...
Last post by aILaGend - January 08, 2022, 06:44:36 AMHi Everyone!
I hope you all have a great 2022.
Just wanted to update my balance sheet and get your thoughts, if possible. Any thoughts and suggestions are more than welcomed.
Since my last post, I ended up allocating cash following the rule of higher return. That is: (1) top up savings with tax benefits, and (2) pay down debt.
Starting 3 months ago, I've decided to focus cash allocation on building a 12 month emergency fund, changing the allocation to (1) top up tax benefits savings, (2) build emergency fund. Current job is taking a toll on well-being, while job prospects look dim.
PD: If numbers seem off (amounts and interest rates), is because I'm not from the US, so things are different
I hope you all have a great 2022.
Just wanted to update my balance sheet and get your thoughts, if possible. Any thoughts and suggestions are more than welcomed.
Since my last post, I ended up allocating cash following the rule of higher return. That is: (1) top up savings with tax benefits, and (2) pay down debt.
Starting 3 months ago, I've decided to focus cash allocation on building a 12 month emergency fund, changing the allocation to (1) top up tax benefits savings, (2) build emergency fund. Current job is taking a toll on well-being, while job prospects look dim.
| Assets | Value | Liabilities | Value |
| Cash | 2.0 | Credit card (0% interest) | 10.0 |
| Short term investments | 17.8 | Personal loans (8.3% interest, yearly) | 24.2 |
| Car | 4.7 | Student loans (CPI + 2% interest, yearly) | 13.3 |
| Long Term Investments (restricted) | 135.6 | Mortgage (CPI+3% interest, yearly) | 257.4 |
| House | 290.1 | ||
| Total Assets | 450.3 | Total Liabilities | 304.9 |
| Net worth | 145.4 |
PD: If numbers seem off (amounts and interest rates), is because I'm not from the US, so things are different
#17
Stocks And Index Funds / Re: Motley Fool
Last post by hznpgolfer - November 30, 2021, 01:40:03 PMCan you please reach out to my email, I am about to buy the MF subscription and would like to talk with you on how you used it so successfully. I appreciate your time!
Regards,
Bob Herczeg
winonabh@gmail.com
Regards,
Bob Herczeg
winonabh@gmail.com
#18
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by Greg - November 26, 2021, 07:01:33 PMAre you guys filling New Jersey State taxes as well? I live in California and i am not sure if this is gone be problem. Thank you
#19
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by daletucker50 - November 24, 2021, 03:57:25 AMJust got this:
ROIPGM Unlevered Diversified Fund:
This investment is being moved to Closed status.
IRM was engaged by RealtyShares to manage this investment in June 2019. Since then, IRM
has used every possible resource at our disposal to try and maximize the possible return for
investors. In certain problematic investments, IRM has deployed Asset Managers to physically
tour the property, commissioned third party appraisals, held discussions with local brokers,
competitors, and potential buyers. IRM has used third party forensic accounting, private
investigators, senior leadership negotiations and both in-house and out-sourced legal teams in
an attempt to extract the best possible financial outcome for investors. IRM does not endorse
the underwriting, investment agreements or asset management work provided previously by
RealtyShares Inc., but IRM is bound by those original terms as signed by investors.
As mentioned in prior updates, IRM has been able to negotiate a settlement with the sponsor.
There is no personal guarantee associated with this investment, and the sponsor entity is an
LLC organized under Wyoming law, the provisions of which make it very difficult to "pierce the
corporate veil" to obtain recovery from individual assets. There was no legal process by which
the individual LLC members would likely to be found liable for the debts of the entity. Attempting
to obtain a judgment against the entity would require substantial and expensive litigation, and
that judgment, if obtained, would likely not be recoverable. For these reasons, it was decided
that a settlement was the best possible outcome for this investment.
The sponsor did provide a lengthy letter describing in detail why the investment failed (the
"Explanatory Letter"). The terms of the settlement agreement require compliance with a
Stipulated Protective Order (SPO) that maintains the confidentiality of the settlement terms.
The SPO prohibits third-party disclosure of the Explanatory Letter. Any investor who requests a
copy of the Explanatory Letter must also execute a statement acknowledging they have read,
understand, and will comply with the SPO. In the event an investor violates the terms of the
SPO by disclosing the Explanatory Letter to a third party, he/she could face legal action by the
sponsor. Accordingly, IRM recommends that any investor who obtains a copy of the
Explanatory Letter take all reasonable measures to maintain its confidentiality and prevent its
disclosure to third parties.
This investment will now terminate as all possible payments to investors have been collected
and distributed to investors, less fees and expenses. Please note that, as is common practice,
certain funds may be held back in order to cover property related expenses, such as legal fees,
back taxes or other invoices. Once all possible invoices have been paid, any remaining funds
will be distributed to investors in full.
IRM will now close this investment, no further updates, payments or distributions will be made
for this investment (except for Held Back balance distribution, as applicable). IRM has not
waived any rights, by any party or manager, to file claims against the original sponsors in this
matter
*** Investment Closed ***
ROIPGM Unlevered Diversified Fund:
This investment is being moved to Closed status.
IRM was engaged by RealtyShares to manage this investment in June 2019. Since then, IRM
has used every possible resource at our disposal to try and maximize the possible return for
investors. In certain problematic investments, IRM has deployed Asset Managers to physically
tour the property, commissioned third party appraisals, held discussions with local brokers,
competitors, and potential buyers. IRM has used third party forensic accounting, private
investigators, senior leadership negotiations and both in-house and out-sourced legal teams in
an attempt to extract the best possible financial outcome for investors. IRM does not endorse
the underwriting, investment agreements or asset management work provided previously by
RealtyShares Inc., but IRM is bound by those original terms as signed by investors.
As mentioned in prior updates, IRM has been able to negotiate a settlement with the sponsor.
There is no personal guarantee associated with this investment, and the sponsor entity is an
LLC organized under Wyoming law, the provisions of which make it very difficult to "pierce the
corporate veil" to obtain recovery from individual assets. There was no legal process by which
the individual LLC members would likely to be found liable for the debts of the entity. Attempting
to obtain a judgment against the entity would require substantial and expensive litigation, and
that judgment, if obtained, would likely not be recoverable. For these reasons, it was decided
that a settlement was the best possible outcome for this investment.
The sponsor did provide a lengthy letter describing in detail why the investment failed (the
"Explanatory Letter"). The terms of the settlement agreement require compliance with a
Stipulated Protective Order (SPO) that maintains the confidentiality of the settlement terms.
The SPO prohibits third-party disclosure of the Explanatory Letter. Any investor who requests a
copy of the Explanatory Letter must also execute a statement acknowledging they have read,
understand, and will comply with the SPO. In the event an investor violates the terms of the
SPO by disclosing the Explanatory Letter to a third party, he/she could face legal action by the
sponsor. Accordingly, IRM recommends that any investor who obtains a copy of the
Explanatory Letter take all reasonable measures to maintain its confidentiality and prevent its
disclosure to third parties.
This investment will now terminate as all possible payments to investors have been collected
and distributed to investors, less fees and expenses. Please note that, as is common practice,
certain funds may be held back in order to cover property related expenses, such as legal fees,
back taxes or other invoices. Once all possible invoices have been paid, any remaining funds
will be distributed to investors in full.
IRM will now close this investment, no further updates, payments or distributions will be made
for this investment (except for Held Back balance distribution, as applicable). IRM has not
waived any rights, by any party or manager, to file claims against the original sponsors in this
matter
*** Investment Closed ***
#20
Financial Advice From The Community / Reader Profiles / Re: Breaking the Financial Sam...
Last post by curiouschad - November 05, 2021, 08:11:58 AMHey everyone, had some down time and remembered I had made this post a couple of years ago. I wanted to provide a follow-up because it was fascinating reading some of the comments back in February 2019.
I ended up buying a home at an even larger purchase price ~$475k closer to the city center. I'm now 26 years old and lateraled to a larger bank in an Associate level role in the same city in the Southeast. I took the plunge and put down 10% on that home which wiped out most of my cash savings at the time, as you can imagine I was pretty nervous taking that large of a risk but felt confident in my career trajectory.
I made this decision because I had an old college buddy who agreed to room with me and pay $1,200/month, however he eventually backed out. After further consideration I got too used to living alone and didn't want the headache of searching for a roommate. Luckily my income has continued to rise and as we all know the housing market has boomed (25%+ since I closed).
I guess my key takeaway is that it may be worth taking a risk to purchase a more expensive home early in your career if you're confident with your career and income growth. I definitely consider myself lucky and don't recommend blindly levering up without strong conviction that you can comfortably meet your monthly payments.
Posting my updated financial stats below to display how things have changed since my home purchase. I still wish I had the risk tolerance to buy crypto back then instead of real estate, ha. Looks like I'll be on the banking grind for the foreseeable future.
Income: $175k base, bumping to $200k in January; 2021 bonus expected to be an additional ~$150k
Assets
401k (50/50 roth/traditional): $130k
HSA: $5k
Real Estate: $150k (net of ~$410k mortgage)
Wealthfront (after-tax): $125k
Cash: $40k
No other debt outside of mortgage
I ended up buying a home at an even larger purchase price ~$475k closer to the city center. I'm now 26 years old and lateraled to a larger bank in an Associate level role in the same city in the Southeast. I took the plunge and put down 10% on that home which wiped out most of my cash savings at the time, as you can imagine I was pretty nervous taking that large of a risk but felt confident in my career trajectory.
I made this decision because I had an old college buddy who agreed to room with me and pay $1,200/month, however he eventually backed out. After further consideration I got too used to living alone and didn't want the headache of searching for a roommate. Luckily my income has continued to rise and as we all know the housing market has boomed (25%+ since I closed).
I guess my key takeaway is that it may be worth taking a risk to purchase a more expensive home early in your career if you're confident with your career and income growth. I definitely consider myself lucky and don't recommend blindly levering up without strong conviction that you can comfortably meet your monthly payments.
Posting my updated financial stats below to display how things have changed since my home purchase. I still wish I had the risk tolerance to buy crypto back then instead of real estate, ha. Looks like I'll be on the banking grind for the foreseeable future.
Income: $175k base, bumping to $200k in January; 2021 bonus expected to be an additional ~$150k
Assets
401k (50/50 roth/traditional): $130k
HSA: $5k
Real Estate: $150k (net of ~$410k mortgage)
Wealthfront (after-tax): $125k
Cash: $40k
No other debt outside of mortgage