[BostonBMW]

For those who have student loan debt weighing them down, check out this guys blog: http://nomoreharvarddebt.com/

Disclaimer: I don't know this person nor can verify his data. It is detailed and inspiring.

[jimukr104]

Ok I don't want to make this into a debate becasue any investment plan CAN work if done correctly and a bit of luck.
But I want to point out a few things:
You assume that MOST Americans get a tax deduction from the mortgage interest. I know for a fact that most don't, they make off better with the standard deduction. So happens that the average home price in America doesn't create a mortgage large enough when added to other deductions to beat the standard deduction. In fact its in places with expensive real estate where people are more likely to itemize. But as others agreed in these 1st tier cities the rent to buy ratio often favors renting.If you don't believe me go ask a CPA. We are talking about the AVERAGE American.Making a list of advice that others should follow is only good if it affects the AVERAGE person not just yourself.
The reason others agreed with me was because they understood the difference. What you can accomplish is specific to you, BUT the average person has other issues. Certainly more likely to happen than a vat(states would complain) or a large general tax increase.
For example, you mentioned you change your workout in the gym, that's GREAT. But if we are talking about how the AVERAGE person works out and what is needed for the AVERAGE person to keep fit then my idea to save money is GREAT.
Basically the 401k rollover is great for some people NOT all because some of us are in the same tax bracket regardless of how much we roll out and would use yearly. I specifically like roth Ira's.Plus I mentioned that most 401k have boring investment choices.

I am NOT trying to be a jerk...your ideas are GREAT and I told you that.But you committed the "GREEK KAMAKI"(this should be a new term) of advice. You generalized and assumed what is good for you , would be best for the AVERAGE guy.
I remember you are wealthy so people should listen to you no doubt.
MY aunt was multimillionaire, never owned property, retired since her 40's
my father is a millionaire, owns only a cheap vacation home.Retired at 55
I am a millionaire (will make it to multi) and only own cheap vacation properties.Retired at 37
My brother is a multi millionaire and owns a home, BUT he owns because he has a family and wants to live there .He doesn't consider it a nest egg or investment.He retired last year at 42

Other than not owning a home..you know what ALL of them have in common? No cell phones lol

P.S. Most people have NO desire to be a landlord. Its NOT fun and when you only have one property , you are very dependent. Not owning a multi unit building is another story.i once heard a great piece of advice never rent out a property that is further away than you can walk over to.

Also realize if people in congress get thier way... the interest tax deduction will go away. Since they know it mostly helps the rich, the democrats are targeting it as a way to save money.

[BostonBMW]

(08-21-2013 02:36 PM)jimukr104 Wrote:  

Ok I don't want to make this into a debate becasue any investment plan CAN work if done correctly and a bit of luck.
But I want to point out a few things:
You assume that MOST Americans get a tax deduction from the mortgage interest. I know for a fact that most don't, they make off better with the standard deduction. So happens that the average home price in America doesn't create a mortgage large enough when added to other deductions to beat the standard deduction. In fact its in places with expensive real estate where people are more likely to itemize. But as others agreed in these 1st tier cities the rent to buy ratio often favors renting.If you don't believe me go ask a CPA. We are talking about the AVERAGE American.Making a list of advice that others should follow is only good if it affects the AVERAGE person not just yourself.
The reason others agreed with me was because they understood the difference. What you can accomplish is specific to you, BUT the average person has other issues. Certainly more likely to happen than a vat(states would complain) or a large general tax increase.
For example, you mentioned you change your workout in the gym, that's GREAT. But if we are talking about how the AVERAGE person works out and what is needed for the AVERAGE person to keep fit then my idea to save money is GREAT.
Basically the 401k rollover is great for some people NOT all because some of us are in the same tax bracket regardless of how much we roll out and would use yearly. I specifically like roth Ira's.Plus I mentioned that most 401k have boring investment choices.

I am NOT trying to be a jerk...your ideas are GREAT and I told you that.But you committed the "GREEK KAMAKI"(this should be a new term) of advice. You generalized and assumed what is good for you , would be best for the AVERAGE guy.
I remember you are wealthy so people should listen to you no doubt.
MY aunt was multimillionaire, never owned property, retired since her 40's
my father is a millionaire, owns only a cheap vacation home.Retired at 55
I am a millionaire (will make it to multi) and only own cheap vacation properties.Retired at 37
My brother is a multi millionaire and owns a home, BUT he owns because he has a family and wants to live there .He doesn't consider it a nest egg or investment.He retired last year at 42

Other than not owning a home..you know what ALL of them have in common? No cell phones lol

P.S. Most people have NO desire to be a landlord. Its NOT fun and when you only have one property , you are very dependent. Not owning a multi unit building is another story.i once heard a great piece of advice never rent out a property that is further away than you can walk over to.

Also realize if people in congress get thier way... the interest tax deduction will go away. Since they know it mostly helps the rich, the democrats are targeting it as a way to save money.

I see your points here. Fair enough, some of the points may not be valid for the average guy.

Shifting things a bit, do you have any ideas, plans that can help the average person? If there is a legal, creative way to maximize the dollar, do share with us!

[Cattle Rustler]

Another tip for student debt:

Take 6 hours at a community college, it should cost about $250 per semester or 750 per year. Most loans are about $110/month. You can learn a new skill such as: programming, cooking, a language, etc.

Your student loans will accrue interest but you won't have to pay your loans while you're taking 6 hours. After 20 years any remaining debt will be forgiven.

My professor did this: Bachelors, community college, masters, community college, PhD, community college. He managed to game the system long enough to get a well paying job and make minimum payments until his time runs out.

[BostonBMW]

(08-22-2013 12:03 AM)Cattle Rustler Wrote:  

Another tip for student debt:

Take 6 hours at a community college, it should cost about $250 per semester or 750 per year. Most loans are about $110/month. You can learn a new skill such as: programming, cooking, a language, etc.

Your student loans will accrue interest but you won't have to pay your loans while you're taking 6 hours. After 20 years any remaining debt will be forgiven.

My professor did this: Bachelors, community college, masters, community college, PhD, community college. He managed to game the system long enough to get a well paying job and make minimum payments until his time runs out.

Good post. Definitely takes commitment to take classes for 20 years.

[MunichSux]

jimukr401, thank you for a very motivating post. About investing in property - John Paulson says "Do it".
About the man : http://en.wikipedia.org/wiki/John_Paulson
The video : http://www.youtube.com/watch?v=YD3wJyZx6ZI

[Teutatis]

(08-20-2013 04:12 PM)jimukr104 Wrote:  

Ok I am GOING to make a few comments here and there..nothing discounting what you said.

Definitely agree with you on the buying vs renting a house thing but not on the gym thing.
Some guys can work out alone in a basement for years without any problem and have great results with that type of training for sure, but other guys, like me, actually like and enjoy to see and be around people. I prefer going to the gym than working out alone on some hidden basement or garage, and this is coming from someone who has done countless solo workouts at home or in parks with no one else around. The social aspect of it and the mental break I get from going to the gym more than pays off whatever I spend on it, not to mention that there are lots of things you can only do at the gym, or at least it's much more practical and easy to do them there.

[jimukr104]

BMW i wrote a whole thesis of what i thought was good...and cablevision connection went out right when i pressed the send button lol. That was a few days ago.But one thing i mentioned is i really think the economy is in trouble and 2-3 crashes per decade in the future is likely. I am also fearing a commercial real estate crash that will make the housing bubble seem small.
i THINK having skills is very important in the future environment..being a jack of all traders to an extent. Also i still believe in index funds and yes cash. I know the interest rates are going to shoot up . Fed cant keep pooping up the stock market and housing forever.

[Cattle Rustler]

(08-23-2013 08:43 PM)jimukr104 Wrote:  

I am also fearing a commercial real estate crash that will make the housing bubble seem small.

Three words, student loan crash.

Many kids are brainwashed with going to college and getting rewarded with an automatic job. They don't want to learn trades or get dirty.

[jimukr104]

^^ to be honest i have 200 credits , like the = to a phd and it was a job that required 2 years of college where i worked.
I think student loans ruin everything. They allow college grads to be overpriced because they know students can get loans. If there were no loans universities would have to become more affordable to survive.
Also everyone with a shitty college degree chasing same job sucks. Why the fuck do guidance counselors only push collage? why not push trades?
Anyone ever see an out of work plumber?
see the salary of union electricians?

[playa_with_a_passport]

(08-20-2013 04:12 PM)jimukr104 Wrote:  

Ok I am GOING to make a few comments here and there..nothing discounting what you said.
I agree bit with Worldwide.
For adults having a roommate doesn't work. To be honest I don't know one guy who ever had a roommate situation that was ideal and when they are close to ideal you end up losing the roommate anyway. Ok for guys in thier early maybe mid 20's though.
Buy a home??WRONG.Buying a home to live in isn't a good investment. Almost every financial investor agrees. In some markets after the bubble(Ls Vegas,Florida) it was cheaper to own but in most 1st tier cities it is NOT.
That whole you are paying your self BS line is just that. In most charts unless you are staying in the same home about 10 years ...you will lose money.You also lose money by not having it available to invest someplace else.
Second.... on average in most areas home appreciation barely beats inflation... you can take the money and earn more in other investments.
third.... A single person will rent a small flat. If you buy you end up either in a condo with high fees or a large house with large bills. Its not like you are moving from your 1 bedroom into a 1 bedroom home.It ends up being an upgrade that costs more.

I concur...

If you get more ass than your room-mate, then its only a matter of time before he becomes a Hate-mate. Even your own family, you get older and you realized that they have a lot bitch ways about them.

Not to hijack your thread but my 2 centavos for success for young NYC pups. Remember, there are no short cuts.

1. Stay at your moms house and stack your paper.
My first few years living alone I actually got less bangs that I did when I was living at my momma's crib. The reason? having your own place in Brooklyn is expensive even if you live in the guetto. So, I had less disposable income and time to be out there chasing 'em hoes. Plus because of the great recession, 18-25 crowd aren't really going to penalized you for living at the your parents because chances are they do too.

2. Get nice used car that has a roomy interior.
You can just park around the corner from the club and get your fuck on. Plus, you'll save a ton on motel fees.

3. Stick to CUNY(public university).
Start at their community colleges and then transfer to their 4 year schools. Even if you are paying full boat without financial Aid, your total expenses going to be about 5k-10k for a bachelor. Unless you got into Columbia or Cornell don't even waste your money on private colleges.

4. If you have a choice between entry level fast food job or retail, pick fast food. At least with fast food, food is free. That's at least 10 bucks you saving a day. Also, hours are easier to come by than retail because of high turn over. Get 2 jobs if you need so you can clear at least 19k a year(more on this later)

5. Apply to every single civil service job in the tri state area.
Buy "The Chief" newspaper every Monday. That's the paper that has every single civil service job in the tri state area. Apply for everything even if you aren't interested in the work. Sewer worker, mailman, police, fire department, etc.

6. Once you make around $20,000 a year, apply for low income housing lottery.
Now you hear "low income housing" you thinking projects with Brothas walking around with Du rags, piss on the hallways and shootings. Nah, NYC govt is moving away from public housing and embracing what they call 80/20 housing and Mitchell Lama developments. Basically NYC promises tax breaks to developers and streamline construction permits if they reserve 20% of their units for low income people. This is the only way that anything gets built in the NYC. http://www.nyc.gov/html/hpd/html/apartme...ries.shtml Your rent should be in 500 bucks for a 1 bed room.

7. 4+ years later Once you have your degree; the civil service jobs should be calling you by now for processing.
pick any career that pays by overtime rather than salary. Keep stacking your paper, you are almost there.

8. Check NYC's Department of Housing development for home owning opportunities.
They have quite a few first time home owners programs out there regardless what Fox News says. Get a multi family(2+ family plus basement) regardless of area provided that is near the subway. You have to live there 10 years before you can sell. Rent the two apartments and "move" into the basement. You can still keep your subsided 500 buck apartment or sublet it on the low. Personally I would keep it as a smash pad.

9. After you done all of the above, you should be close to 30.
You have your own crib, money in the bank, debt free degree, superb job security and light speed ahead of your competition. If you need reassurance, go get your HS year book and plug in the names of your peers on Facebook or equivalent and see what they are up to.

Sure, there's nothing wrong with having an online hustle and hoping to be the next Zuckerberg or Mark Cuban but let's face it, the odds are that's not going to happen regardless of how many self help books you read.

[Deepdiver]

I just happened to be driving through one of the neighborhoods in Boston Friday Aug 23 and noticed all the mint condition triple deckers in the Boston area - come to find out their is a triple decker society and owners group in Boston... My mother and father started with nothing and retired (passed away now) millionaires by buying and renting 2 and 3 families (Triple Deckers) for the long haul - over 30 years. The key is if you make less than $150K USD a year you can deduct all of your depreciation against the rental income and with a 15 20 30 year even new 40 year mortgages you pay off the mortgage slowly over time the rents pay off the mortgage and mortgage interest is tax deductible along with all maintenance expenses and capital improvements go towards the basis for determining capital gains... property taxes - huge in Masswilltaxittoyou are also deductible.

Real strong alternative to Roommate renting - I live in SoNH right now and have my primary care with the VA in West Roxbury - triples run between $500K+ in "Dot" to $1M+ mint condition in Boston near Longwood, JP, West Rox, Cambridge, Somerville and rents can run $2400 for a two bedroom near the T or easy walk to a bus line so many folks avoid car ownership and exorbitant parking and just pay more to live near the T. Even the Triples up Mission Hill near NE Baptist Hospital (Orthopedists to most Boston Pro Athletes) are in near pristine condition - just saying.

Hint when 9 of 10 Triples are in mint condition in any given block it is a strong sign of owner occupied pride of ownership and strong economic cash flow from rents. Anything near a Uni attracts grad students and visiting program students and young or old profs looking to be frugal - well located to the T trains or Buses and great job prospects afterwards.

Lots of owner landlords now using Airbnb and the like and if you are creative might be able to load up on a stable of 10's as well and leverage them into your side online hustles - like I am working on. May even turn one into a wing woman - basically keep her running your side $ ventures and never marry her up and only have YOURSELF on the mortgage and or deed.

Point is Boston is booming - been on the silver line to the Seaport or design or innovation districts lately?

A triple is a solid way to live sans roomates and be centrally located and pull tens off the T game for short term (students or new grads with new jobs) or long term wing women - when they invariably push to be wifed up - either make sure she is making a lot more than you (female plastic surgeon or PharmD etc - I dated both in Boston - a friend is banging a sweet PT PhD) and will have to pay you alimony and child support if a marriage breaks up - got to love Boston 51%+ of all professional grads now women - or cold next her for the next 10's in rotation. NYC has to be even better with a high concentration of 10's both domestic and international and most neighborhoods improving with laser focused community policing.

Everyone wants a penthouse suite bachelor pad when the path to slow riches is all around you.

With your tax advantaged cash flow your kids will be going to private schools if the Dad route works for you and you will have a country place on the Cape or In NH or Maine lakes mountains or seacoast areas as well - also rent-able on Airbnb when you are not using it. Oh and when your incomes grow and you are working your primary career because you like it and are xpert at it you can simply rent your flat and buy that suburban McMansion or move permanently to your vacation place if you like. Or just travel the world knowing your stuff is handled by one of your wing women property managers.

[BostonBMW]

(08-23-2013 08:43 PM)jimukr104 Wrote:  

BMW i wrote a whole thesis of what i thought was good...and cablevision connection went out right when i pressed the send button lol. That was a few days ago.But one thing i mentioned is i really think the economy is in trouble and 2-3 crashes per decade in the future is likely. I am also fearing a commercial real estate crash that will make the housing bubble seem small.
i THINK having skills is very important in the future environment..being a jack of all traders to an extent. Also i still believe in index funds and yes cash. I know the interest rates are going to shoot up . Fed cant keep pooping up the stock market and housing forever.

No worries, I hate it when that happens!

You do raise some good points:

- Should we see the crashes as buying opportunities?
- What will be the impact of interest rate increases on the RE Market? Particularly in bubblicious areas like NY/SF/BOS?

[BostonBMW]

This thread is gold, not because I started it but rather due to Playa and Deepdiver's insights on NYC/BOS.

Definitely keep this thing going -- fellas from other parts of the country (West Coast, in particular) please contribute as well.

[Damedius]

(08-24-2013 11:49 AM)jimukr104 Wrote:  

Why the fuck do guidance counselors only push collage? why not push trades?

Probably biased. Most counselors have some sort of degree. Most of the people they work with have degrees. They probably think I have a degree, you need a degree.

Then you probably have universities sending them a bunch of promotional stuff.

[Cattle Rustler]

(08-26-2013 05:10 AM)Damedius Wrote:  

(08-24-2013 11:49 AM)jimukr104 Wrote:  

Why the fuck do guidance counselors only push collage? why not push trades?

Then you probably have universities sending them a bunch of promotional stuff.

This.

Counselors have relationships with college recruiters. And the only thing a HS wants is the same thing that a college wants....recognition. If they can send Joe Schmoe to UT, G-Tech, or a 2-tier state college then they can brag about it, parents will like it, move nearby, and send them to that HS. Remember, counselors report to the principals and aren't independent.

Even HS with good trades programs (auto mech, construction) don't promote their programs that much compared to AP/Dual-Credit.

[jimukr104]

But in addition to those trades you have the allied health fields. At one time the hospitals use to train ,now the community colleges do it. Nuclear technologist for example makes over 60k. Respiratory tech also. These programs are basically originally were tech/trade programs that went to 2 yr college route.

[bacon]

(08-20-2013 04:12 PM)jimukr104 Wrote:  

Buy a home??WRONG.Buying a home to live in isn't a good investment. Almost every financial investor agrees. In some markets after the bubble(Ls Vegas,Florida) it was cheaper to own but in most 1st tier cities it is NOT..

Relevant story in the news
Southern California renters have an edge over home buyers