Search found 479 matches

by riverguy
Sun Jun 16, 2019 5:26 pm
Forum: Personal Investments
Topic: Opportunity Zone Funds
Replies: 9
Views: 638

Re: Opportunity Zone Funds

Looked at them extensively and decided to pass. Cap gains rates are low now. Enormous exposure to the laws changing between now and ten years from now. The trend is going to be to eat the rich. Hard to see how cap gains rates get lower but super easy to see them going up. The basis increase is rathe...
by riverguy
Wed May 29, 2019 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Italian traffic fine with U.S. debt collector
Replies: 60
Views: 4651

Re: Italian traffic fine with U.S. debt collector

Just one of many reasons not to drive in a foreign country.
by riverguy
Sat May 18, 2019 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Multi owner property sale with missing owners
Replies: 12
Views: 1502

Re: Multi owner property sale with missing owners

Exchange money and a deed from them to you five.
by riverguy
Mon May 13, 2019 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does spouse get spousal SSN benefit if she had her own SSN
Replies: 20
Views: 2190

Re: Does spouse get spousal SSN benefit if she had her own SSN

Do people really put that much thought into SS thirty years out?
by riverguy
Sat May 11, 2019 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Potential Real Estate Rental Investment
Replies: 11
Views: 1081

Re: Potential Real Estate Rental Investment

At best you have 8% cash on cash return. Not good.
by riverguy
Mon May 06, 2019 4:46 am
Forum: Personal Finance (Not Investing)
Topic: Compensation negotiation strategy (rocket ship tech)
Replies: 27
Views: 3503

Re: Compensation negotiation strategy (rocket ship tech)

Stock is up 5x in 12 months, you joined 6 mo ago and your total comp is only up 10%? Sounds like you did not negotiate very well or wanted more cash than stock when you signed on.
by riverguy
Sun May 05, 2019 6:24 am
Forum: Personal Finance (Not Investing)
Topic: How to increase deductions on a rental property (HELOC?)
Replies: 15
Views: 811

Re: How to increase deductions on a rental property (HELOC?)

"I'm making money on my rental, help me spend a dollar to save 30 cents"
by riverguy
Sun May 05, 2019 6:18 am
Forum: Personal Investments
Topic: Oil Company Investment
Replies: 19
Views: 1398

Re: Oil Company Investment

The preposition of "why don't they fund it themselves if its so good" is nonsense too. SO many legit reasons people offer up portions of their projects. List those multiple legit reasons please. More opportunities than money, increased returns with investors, reduce risk in a single project, etc.
by riverguy
Sat May 04, 2019 9:10 pm
Forum: Personal Investments
Topic: Oil Company Investment
Replies: 19
Views: 1398

Re: Oil Company Investment

For those with expertise in this area of horizontal drilling in places like OK and TX, what do you think of investments in small independent companies like this? Roxexploration.com This would be with money purely destined for the "green felt table". Has anyone had good or bad experiences in this li...
by riverguy
Sat May 04, 2019 8:10 am
Forum: Personal Investments
Topic: Oil Company Investment
Replies: 19
Views: 1398

Re: Oil Company Investment

You’re not investing in the company. You’d be participating in wells. Seems like typical terms from their projects page. You can make a lot of money but you should probably know something about decline curves and the ability to analyze the deal and determine your range of outcomes based on well perf...
by riverguy
Thu May 02, 2019 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Giving two week's notice before stock options vest
Replies: 91
Views: 5764

Re: Giving two week's notice before stock options vest

Two days notice. Look out for yourself. They would not give you two weeks notice if they let you go.
by riverguy
Wed May 01, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: My solar investment experience
Replies: 100
Views: 8705

Re: My solar investment experience

Solar only makes sense with generous subsidies and super high electric rates.
by riverguy
Wed Apr 24, 2019 2:04 pm
Forum: Personal Investments
Topic: Sell or hold onto small land investment?
Replies: 10
Views: 624

Re: Sell or hold onto small land investment?

A standard piece of advice seems applicable in this situation: Ask yourself if you would buy it now for $70k (or, if you like, for whatever you would net after the sale). Therein lies your answer. The concern I have is that the real estate agent may be misleading the listing price in an effort to g...
by riverguy
Thu Apr 18, 2019 8:55 am
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10992

Re: $1.1 million rental portfolio, but tired of being a landlord

If he's tired of managing rental properties, what's the point of even considering a 1031 exchange? Sort of defeats the purpose doesn't it? Given the numbers you put up, I think the 1031 exchange is questionable anyhow after transaction costs and associated risks. ---> There's more real property out...
by riverguy
Wed Apr 17, 2019 10:49 am
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10992

Re: $1.1 million rental portfolio, but tired of being a landlord

Scenario: - Individual investor owns 10 single-family rental properties. The total market value of all the properties is about $1.1 million. - The properties are all paid off, free and clear, with no mortgages. They were all purchased about 10 years ago for a cost basis of about $500k. - This inves...
by riverguy
Mon Apr 15, 2019 3:36 pm
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10992

Re: $1.1 million rental portfolio, but tired of being a landlord

4-5% cap rate without a property manager is pretty terrible. With that low of expected appreciation, I think you would have a hard time finding a buyer for them at that price. An investment mortgage on those is going to be higher than that cap rate, aka leverage actually hurts in this case. You need...
by riverguy
Tue Apr 09, 2019 5:59 am
Forum: Personal Investments
Topic: Real Estate Investing - Actual Property vs an Index fund
Replies: 10
Views: 1521

Re: Real Estate Investing - Actual Property vs an Index fund

If you’re willing to wait five years to redeem, which seems reasonable with real estate, then I might also consider Fundrise. Fees are higher than my index funds (although much lower than a mortgage!) and returns have been good with no effort on my part. I think it’s a way to get more of the upside...
by riverguy
Tue Apr 09, 2019 5:57 am
Forum: Personal Finance (Not Investing)
Topic: Family business buyout
Replies: 5
Views: 673

Re: Family business buyout

Whatever is in writing.
by riverguy
Sat Mar 23, 2019 10:58 pm
Forum: Personal Investments
Topic: Surprised on tax benefit after first year as landlord!
Replies: 20
Views: 3447

Re: Surprised on tax benefit after first year as landlord!

Most likely it's a poor rental if your taxable income is negative without one time items.
by riverguy
Thu Mar 21, 2019 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Commercial Building Owned by 85 year old dad
Replies: 2
Views: 414

Re: Commercial Building Owned by 85 year old dad

1031 into something else. Why do you want a REIT? Lots of other options. Just would need to title the replacement property in the name of the LLC.
by riverguy
Wed Mar 20, 2019 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Patent an idea and find investors.
Replies: 31
Views: 1824

Re: Patent an idea and find investors.

Create a "poor mans patent" by writing the product description and taking pictures of what you have built (a paper/cardboard prototype) and the drawings that describe the item. Show this paper to a trusted friend and get him/her to sign each page. Then sign each page yourself. Then put all this pap...
by riverguy
Tue Mar 19, 2019 3:42 pm
Forum: Personal Investments
Topic: 1031 from duplex to land?
Replies: 5
Views: 423

Re: 1031 from duplex to land?

If you exchange improved property for unimproved property, you must recapture the depreciation.

Any real property you could exchange into. Oil and gas is a good one.
by riverguy
Tue Mar 05, 2019 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Diversifying against your "natural" capital
Replies: 11
Views: 900

Re: Diversifying against your "natural" capital

If oil and gas are tanking, the stock market is going to follow. It's pretty clear that demand for oil is directly related to economic activity. Stock market vs oil and gas is not as much of a diversification as you think it is. There's no near term replacement for oil and gas. It's not going anywhe...
by riverguy
Wed Feb 27, 2019 8:12 am
Forum: Personal Investments
Topic: Should I sell I-bonds to get 6.75% [in Pakistan bonds?]
Replies: 40
Views: 3275

Re: Should I sell I-bonds to get 6.75%

Investing in Pakistan at the beginning of an escalation with India sounds like a not so good idea...
by riverguy
Tue Feb 12, 2019 12:12 pm
Forum: Personal Investments
Topic: Which brokerage share securities lending profits?
Replies: 4
Views: 229

Re: Which brokerage share securities lending profits?

Why would you even care about this? It's extremely tiny like you said. Basically 0 in most cases. Even if you find out places that share, what are you going to do? Switch brokers for it? Seems crazy.
by riverguy
Tue Feb 12, 2019 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Small business partial ownership
Replies: 22
Views: 839

Re: Small business partial ownership

Why would you buy something in exchange for free labor that is crucially valuable to the company? What's there to really think about? It's a startup. They have nothing. It's worth nothing right now. No one can tell you if it's worth it or not. That's a personal question based on your life and where ...
by riverguy
Mon Feb 11, 2019 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax law expiring in 2025
Replies: 22
Views: 2092

Re: Tax law expiring in 2025

Here's my outlook on tax laws. Write it down, note that I said it, and when I'm write you'll say "He was a seer." It's quite profound... :D 1) Spending cannot go on at the levels that it is, and will be, without more revenue coming in. The piper will be paid. 2) To pay the piper, tax rates will be ...
by riverguy
Mon Feb 11, 2019 2:39 pm
Forum: Personal Investments
Topic: Does this rental have good numbers?
Replies: 15
Views: 1716

Re: Does this rental have good numbers?

Not sure why some folks are saying the management fee is high. Typically it is somewhere between 1 month or 10%. You are right in that range. What causes it to be a bad rental? Just not getting enough rent for the value of the house. Expenses seem reasonable but you need a strong property to be able...
by riverguy
Mon Feb 11, 2019 2:23 pm
Forum: Personal Investments
Topic: Rent or sell house
Replies: 9
Views: 1068

Re: Rent or sell house

You are calculating depreciation on $300k out of $325k. It is highly unlikely that a house of that value is on a piece of land that is only worth $25k. 4% cap rate. Bad. Cash on cash based on the equity you have is 5.2% which is pretty bad as well. I think your repair costs are too high so the above...
by riverguy
Sun Feb 10, 2019 10:52 pm
Forum: Personal Investments
Topic: I'm worried about my pension
Replies: 15
Views: 2641

Re: I'm worried about my pension

I would most definitely plan retirement as if health coverage does not exist. My husband works for a state and health care is NOT GUARANTEED by LAW, but pension is. They continue to remind us of that and have been reducing health care retirement. Spouses no longer given discount in retirement, dedu...
by riverguy
Sun Feb 10, 2019 10:46 pm
Forum: Personal Investments
Topic: Sell due to Capital Gains or Not?
Replies: 20
Views: 1173

Re: Sell due to Capital Gains or Not?

prd1982 wrote:
Sun Feb 10, 2019 9:39 pm
My greatest fear: A week after selling, there will be a major market drop which will have allowed me to sell with no gains!
Why would this be a fear?? You’d rather the value of your holdings go down instead of pay tax on gains?
by riverguy
Thu Jan 31, 2019 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Will this 1031 exchange work?
Replies: 3
Views: 321

Re: Will this 1031 exchange work?

Don't QC your house to an LLC right before the exchange. That will blow up your exchange if it is ever looked at. 1. Yes. 50% of real property is still real property. Dr A needs to own the real property directly though. If Dental Building LLC is the actual owner of the building, Dr A can't buy an ow...
by riverguy
Tue Jan 29, 2019 2:59 pm
Forum: Personal Investments
Topic: Buy pacific gas and electric?
Replies: 44
Views: 4527

Re: Buy pacific gas and electric?

JonnyDVM wrote:
Mon Jan 28, 2019 8:52 pm
Ouch. $65k gone. That has to sting.
Dude has doubled his money, what are you talking about?
by riverguy
Sun Jan 27, 2019 9:58 am
Forum: Personal Finance (Not Investing)
Topic: How to transfer property to family member?
Replies: 2
Views: 456

Re: How to transfer property to family member?

Quitclaim from you and your wife to BIL. Important for BIL to have you on there to disclaim any interest you may have in the property as husband of the owner. Find a an example of a Texas quitclaim deed, add the property description from your wife’s deed, notarize it and record it. Should be pretty ...
by riverguy
Sun Jan 27, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Real Estate as Passive Income
Replies: 45
Views: 2953

Re: Real Estate as Passive Income

You’ve gotta have a strong rental property to cashflow a 15 year loan. Run some numbers and see how much cashflow it does with a 30 year loan. If it’s reasonable, I would just ask yourself if you ever plan on coming back to that area and would you want to live in that house. And what you think the f...
by riverguy
Sun Jan 27, 2019 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Solar land lease
Replies: 7
Views: 554

Re: Solar land lease

No real experience but I would basically consider it a sale. You aren’t going to be able to use that land again unlike oil & gas or wind. Sure seems that the negotiated price would need to reflect that.
by riverguy
Thu Jan 24, 2019 3:59 pm
Forum: Personal Investments
Topic: Wunder Capital - solar lending as an investment - Thoughts?
Replies: 9
Views: 904

Re: Wunder Capital - solar lending as an investment - Thoughts?

Hard pass. Much better stuff out there.

6% for a 5 year loan that is only secured by depreciating assets in an industry that is only alive because of subsidies with one of those main subsidies starting to sunset next year.
by riverguy
Mon Jan 21, 2019 8:16 pm
Forum: Personal Investments
Topic: Buy REIT or Rental Property
Replies: 22
Views: 2110

Re: Buy REIT or Rental Property

You may want to look at your definitions again. Cap rate is revenue-expenses without debt service costs included. Cap rate is your cash on cash return for an all cash purchase. The 1% rule is just a guideline for looking at properties that usually means you have a possible good deal. You could still...
by riverguy
Mon Jan 21, 2019 7:53 pm
Forum: Personal Investments
Topic: Buy REIT or Rental Property
Replies: 22
Views: 2110

Re: Buy REIT or Rental Property

From what I've heard from listening to actual real estate investors, I would personally be interested in real estate (if my DW was on board, which she isn't, and that's fine) only if I could make the numbers work (e.g. '1% rule', minimum expected return of 5% real) inclusive of paying a property ma...
by riverguy
Sun Jan 20, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Evaluating Job Offer - Longer Commute
Replies: 63
Views: 4107

Re: Evaluating Job Offer - Longer Commute

Doesn’t seem worth it at all unless the bigger bonus is essentially guaranteed.
by riverguy
Sun Jan 20, 2019 10:47 am
Forum: Personal Finance (Not Investing)
Topic: How to Get Competitive Quotes on O&G Tax Prep Fees
Replies: 17
Views: 1042

Re: How to Get Competitive Quotes on O&G Tax Prep Fees

If you want to sell them and get rid of the hassle, send me a PM with info on the properties and I can make you an offer to purchase.
by riverguy
Sat Jan 19, 2019 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Observation - when it's better to invest at lower rate
Replies: 12
Views: 1304

Re: Mortgage Observation - when it's better to invest at lower rate

Sorry but you are overthinking this. It’s pretty simple really. Just a spread between the rates. If you have investments that yield less than your mortgage rate, you are not coming out ahead by investing. You are including return of bond principal as a “return” but not considering the 50k down payme...
by riverguy
Mon Dec 31, 2018 10:00 am
Forum: Personal Investments
Topic: Too Heavy in Real Estate?
Replies: 12
Views: 1010

Re: Too Heavy in Real Estate?

Cap rates on the rentals are awful. Hopefully you have some good appreciation in them. It's hard to even leverage them because you are going to pay an interest rate higher than the cap rate, unless you could use the proceeds to buy a significantly higher cap rate property.
by riverguy
Thu Dec 27, 2018 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy/Approach to Negotiating with Commercial Real Estate Developer
Replies: 22
Views: 1312

Re: Strategy/Approach to Negotiating with Commercial Real Estate Developer

$200k in 2015, sell for $855k in 2018. Pretty good return. Why would you want to get involved in taking a portion of their lease proceeds? They aren't going to go for it and that just sounds messy. You get a significant portion of it covered by the personal residence exemption, long term cap gains a...
by riverguy
Tue Dec 11, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Hiding Identity of Trust Owner: Registered Agent Services Needed?
Replies: 20
Views: 1930

Re: Hiding Identity of Trust Owner: Registered Agent Services Needed?

You are likely going to have to name the trustee of the trust in any conveyance documents. Typically property is conveyed to the Trustee on behalf of the Trust. If you convey directly to the trust, you typically would have to record a memorandum of trust that states who the trustees are. Sounds like...
by riverguy
Sat Dec 08, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Any way to trade land without paying taxes or exchanging funds?
Replies: 19
Views: 1518

Re: Any way to trade land without paying taxes or exchanging funds?

Just consider it a gift and report it to the IRS. Likely well within your lifetime maximum gift allowance. How can you consider it a gift when it is in exchange for valuable consideration? Gill Correct. A GIFT by definition by IRS standards means you are giving something of monetary value and NOT r...
by riverguy
Sat Dec 08, 2018 8:19 am
Forum: Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 12279

Re: 20M Inheritance - What is best option for small/no risk on principal?

Short term treasury bills. Enjoy your risk free $500k per year with 0 principal risk. Short term so if things change you can change with it.
by riverguy
Fri Dec 07, 2018 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Any way to trade land without paying taxes or exchanging funds?
Replies: 19
Views: 1518

Re: Any way to trade land without paying taxes or exchanging funds?

Just consider it a gift and report it to the IRS. Likely well within your lifetime maximum gift allowance.
by riverguy
Wed Dec 05, 2018 3:32 pm
Forum: Personal Investments
Topic: Considering residential real estate investment
Replies: 74
Views: 5602

Re: Considering residential real estate investment

You could also consider ownership in a crowdfunding sort of REIT, which I do in Fundrise. They participate in building apartments and other housing in various parts of the country, as well as some house flipping, particularly in high-demand areas like LA and DC, and you can invest according to your...