Afford Anything

Tag: real estate investing

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#379: Invest Anywhere: 4 Benefits and 5 Challenges of Long-Distance Real Estate Investing

Welcome to our First Friday bonus episode.

Once a month, Afford Anything presents a special feature called Invest Anywhere, in which we teach our audience how to invest in real estate from thousands of miles away.

We kickoff today’s episode by discussing current market conditions. Yesterday the Fed raised interest rates by another 50 basis points, which means mortgages are more expensive than they’ve been in years. Additionally, jittery investors worried about an impending recession led the stock market to its worst day of the calendar year so far.

How should we interpret the current market conditions? Is this a good time to buy an investment property? We cover this in the first 20 minutes of today’s episode.

Next, we discuss 5 challenges associated with investing in long-distance real estate investing: (1) fear, (2) accountability, (3) traction, (4) stress, and (5) relationships.

We elaborate on each challenge and offer solutions.

Finally, we discuss 4 benefits to investing out-of-state: (1) competitive ability, (2) diversification, (3) returns, and (4) repeatability. We elaborate on four types of diversification: economic, strategy, business cycle, and asset based.

Enjoy!

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#373: Invest Anywhere: The 5 Ways Real Estate Makes Money

On the First Friday of each month, we air a special bonus episode.

Historically, these episodes have been the same as our normal weekly shows. They alternate between interviews and community Q&A episodes.

But for more than a year, I’ve wanted to create something special, something that makes these monthly bonus episodes stand out […]

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#372: Ask Paula: I’m 33 and Want to Retire at 45 – What Should I Do?

Eve has been investing in her brokerage account and the tax liabilities are starting to add up.  She wants to retire in 12 years and is wondering if she should invest in after-tax contributions and plan on a Roth conversion.

Anonymous has rental properties and wants to start building his kids credit histories.  Is it a good idea to add them as co-borrowers on the mortgage?

Lily is really excited about investing in real estate, but househacking wasn’t the right fit.  She’s looking for advice on investing in opportunity zones through crowdfunding platforms.

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#368: Ask Paula: Talk Crypto To Me

Alex is curious about cryptocurrency. How should she analyze the returns promised by different platforms and where can she go to  learn more about crypto in general?

Grace wants to buy a manufactured home for rental income. Should she calculate her returns differently for a manufactured home?

Thomas and his wife have parallel goals of saving for a down payment and contributing to retirement accounts.  How should they balance both of these goals?

In today’s episode, former financial planner Joe Saul-Sehy and I tackle these tough questions.

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

Enjoy!

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#358: Ask Paula: Should I Invest in Index Funds More Actively?

Where is the balance between the risks and potential returns of actively and passively investing in index funds?

Where do you place your savings after you max out your retirement and HSA accounts?

How do you finance building a rental unit when there’s already a home on the lot?

Is it more beneficial to buy back pension time with post tax deductions or a 457b plan? Or should I not buy back pension time at all?

In today’s episode, former financial planner Joe Saul-Sehy and I discuss the purpose and practice of mindful money.

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

Enjoy!

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#352: Ask Paula: Should I Pull Money from My Emergency Fund to Invest or Pay Off Debt?

Anna and her husband have volatile income, but Anna thinks that having 18 months of living expenses is unnecessary. She’s torn between paying off her student loans ($30,000) or investing the money. Mentally, she always figured she would pay off her debt first, but wouldn’t investing pay off in the long run?

Charlotte and her husband are taking a phased approach to financial independence, where they need to bridge two gaps before they each turn 59 ½. How can they calculate how much they need at each phase?

Elle has a retirement plan in place, but her company is adding a Roth 403(b) option soon. Should she stay the course or adjust her strategy in these last five years before retiring?

Sara wants to purchase land and build her dream house by refinancing her rental property and turning her current home into a second rental. How can she improve this plan?

Joe Saul-Sehy, my friend and former financial planner, joins me to tackle these questions on today’s episode. Enjoy!

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#348: Ask Paula: How Should We Invest to Retire By Our Mid-40’s?

Julia and her husband, both 27, want to retire by their early to mid-40s. Is there a point at which they should stop contributing to tax advantaged accounts and only contribute to taxable accounts?

Ana and her family like their home, but it needs to be bigger. A cash-out refi didn’t give them enough funds for their dream renovation. Should they put their money into the market in the hopes that it will grow large enough to fund a future renovation? Or should they move into a bigger house, rent out their house, and fix it up years down the road?

Anonymous from MA is flummoxed by HSA-compatible health plans. His copay and deductible are awful, and even bronze plans seem better. Are HSA plans overrated, or does the math work out?

Aja’s mom is 75 and has to take required minimum distributions from her IRA. She doesn’t need the money. Where should she put it?

Nick has a seasonal business. Can a sweep account help stabilize him?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy!

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

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By Paula Pant

#342: Ask Paula: How to Make Smarter Real Estate Decisions

Russell is a busy professional who’d like to invest passively in real estate. Is there data he can use to compare this approach to owning and managing their own properties?

Laura wants to purchase her first investment property in Miami. Should she cash out some RSUs and stock from her company to use as a down payment? And what type of mortgage is she eligible for since she already owns a home?

Jordan and his wife own three properties and are under contract on a new house since they have a new baby on the way. Should he sell any of his existing properties to be in a stronger cash position, thus mitigating the risk of future fluctuations in his income as a real estate broker? Or should he keep his rental properties since his goal is to reach financial independence through rental income?

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

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By Paula Pant

#336: Ask Paula: I’m Barely Breaking Even on My Rental. Should I Sell?

Paula standing outside by a wall wearing a blue shirtAnonymous and his partner have a one-bedroom condo that they rent out in Pasadena, CA. The problem? They’re barely breaking even. Should they keep the condo, or sell it and make better use of the profits?

Sam wants to know: how much of an emergency fund does a rental property need?

Michael and his wife expect their taxable income to be less than $10,000 this year. Should Michael (age 56) take distributions from his 401k to minimize or eliminate their income tax burden?

Shanon wants to switch to an ethical bank with values that align with hers. How can she create a framework for making decisions about financial institutions when authentic information is scarce?

Sharon’s husband purchased a property with a below-market loan in 2008. They now have an extra $4,000 per month, and Sharon wants to buy a property as a first-time buyer. They’re torn between keeping the property or selling it. What should they do?

Former financial planner Joe Saul-Sehy joins me to answer more of your questions.

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

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By Paula Pant

#332: Ask Paula: What’s the Point of Financial Independence if I’m Not Going to Retire?

Ginger’s financial independence (FI) number is $2 million, but she doesn’t want to fully retire early. Once she hits ‘coast’ FI, she wants to 1) buy her time back with outsourcing, 2) take a mini-retirement, and 3) buy a vacation home. Does it make sense for her to divert retirement contributions to these goals, or should she aim to save $2M?

Wilson plans to have a two percent withdrawal rate in retirement. Given this low rate, should he go all-in on stocks? Or should he split up his retirement funds and invest one half conservatively and the other half aggressively?

Jennifer has a low-stress doggie-daycare, but she needs a bigger space to scale up. How the heck can she find a property to suit her needs in Austin, TX?

My friend and former financial planner Joe Saul-Sehy joins me to answer another round of listener questions.

(If you have questions on business, money, trade-offs, financial independence strategies, travel, or investing, leave them here and we’ll answer them in a future episode.)

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