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SHOW NOTES FOR EPISODE 124: ASK BILL! ANSWERS TO LISTENERS’ QUESTIONS
The Old Dawg’s REI Network receives many questions from podcast listeners via email, through our website at olddawgsreinetwok.com, through other outside websites (like Quora, etc.), by phone and in person. In this episode, we are introducing a new monthly Fun Facts Friday feature called “Ask Bill” where Bill will answer, on-the-air, some of the top questions received during the month.
Introduction
Hey Old Dawg listener’s how’s it going today? I hope all is well. I am so very encouraged talking to some of you.
I’m introducing a new segment here, hopefully, once a month called “Ask Bill.”
You see, I do talk with a lot of our listeners out there via email, phone and in-person meetings and I am asked some great questions. So, I thought I would introduce this segment as a means to share these some of these great questions and my responses.
And, since I don’t have lots of time on Fun Facts Fridays, I can refer you to previous podcast episodes for additional information and I’ll provide the links on our show notes located at olddawgsreinetwork.com/blog.
So let’s get ready.
My first letter actually is not a question but, instead, a few words of encouragement for all old dawg investors! And it’s not really from a “old dawg” but actually a young couple living in Southern California.
An Encouraging Email
Bill!
Hey there! It’s Brian. Thank you for your podcasts – they mean a great deal to reinforce we are on the right road. My wife and I got a big laugh out of the “Prostitutes” episode!
On our front – I’m thrilled to report that literally today we signed docs on our first rental as a married couple! (A single-family in Indy). Tomorrow the property should record – which is on Aug 1st – my wife’s birthday. Our getting her a house for her birthday makes me feel like a high roller indeed! Most celebrities stop at jewelry…lol
If and until then, thank you for all you do and God Bless.
Brian
Isn’t that awesome news! See, if this young couple can pull this off so can you. BE ENCOURAGED!!!!
Ok, on to my first question:
A Question About When to Get Started
Stephanie Asks
“May I ask.. is it reasonable to assume that a Old Dawg can get into the real estate business a few years prior to retirement? or is that too scary? I would really appreciate your opinion. While I have been somewhat on the outskirts of investing, I am interested in jumping in head first… …please tell me if it is reasonable.”
Thank you in advance
Old Dawg S
Hi Stephanie,
Thanks for writing.
Yes, you can get started before you retire. In fact, there are some real advantages of starting your real estate investing activities before you retire, such as:
- You can get lines of credit and mortgage loans easier while you are still employed in a W-2 job
- You can start generating rental income before you retire. That way, you can get a jump start so that you have the cash flow income coming in before you retire
- You can get through most of the learning curve before you retire so that you can concentrate more on growing your rental property portfolio when you are retired
Here is one of our podcasts about a guy who quit his W2 job with earnings for real estate investing: http://olddawgsreinetwork.com/getting-into-apartment-investing/
I hope I answered your question. If you have any further questions, please feel free to write.
Blessings,
bill
Question on Biggest Real Estate Investing Mistakes
Steve asks:
What is the biggest mistake people make when investing in real estate? (Rental property)
Not buying more real estate! I have a podcast where all I do is interview the top real estate investors in the nation and the number one complaint is that they didn’t buy more real estate sooner. Here is an interview with Samuel K. Freshman, a Stanford Law grad who wrote the book on real estate syndication and who has been investing in real estate for 60plus years. Listen to his answer about his biggest mistake: 091: Real Estate Syndication for Dummies
A Question on What to do With Sales Profits
Omar asks:
Where do people invest profit from their sold rental property to save themselves from huge taxes?
The best place real estate investors put there profits is in a 1031 exchange, which allows you to buy more real estate without having to pay capital gains. It’s a fantastic vehicle that allows you to continue to invest profits and expand your real estate holdings. I did a podcast on 1031 exchanges that will give you more details at 082: What is a 1031 Exchange?
A Question on How to Make Enough Cash Flow to Quit Day Job
Barbara asks
How do real estate investors make enough money to quit their day jobs?
The trick is how you invest. Think – Economy of Scale! If you purchase 22 houses it is much more involved and complicated than buying a 20-unit apartment. With 22 houses you have 22 insurance policies, 22 property tax payments and 20 roofs to worry about. With a 22-unit apartment, you have one insurance policy, one property tax payment and one roof. A lot less complicated. Plus, with multifamily investing you can control the value of the property. With a house you can’t. That 22 unit apartment pulls in $200 a door, just like the houses (after mortgage and expenses) but that one property nets $4,400 per month. Could you live on that? How about 50 units? 100 units? Do the math. Here is a podcast we did with a young man you accumulated $28 million in real estate in only 3 years. Check it out at Old Dawg’s REI Network.
If You Have a Question You Would Like Bill to Answer
- Write to Bill at bill@olddawgsreinetwork.com
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