Posted by chris on March 30, 2000 at 02:48:37:
Check out Bronchick’s material on protecting your assets. It is available on this site and he has many articles to read for free. Also go to the Legal Corner section here where a lot of the same questions you may have are answered.
??? for Full-Time Investors - Posted by Lorenzo,NC
Posted by Lorenzo,NC on March 29, 2000 at 07:51:40:
I’m at a decision point in my life once I finish college next month. I have been working full time for the past couple of months and came to the realization that having a job is really costing me money. I was wondering if any of you full timers just jumped in with that sink or swim attitude.
I have a great mentor to help me shorten my learning curve and that has me wanting to leave my “security” even more. I’m just curious as to what point did you full timers decide that being just over broke (j.o.b.) was a liability than an asset
thanks for your responses
Lorenzo,NC
Had no choice - Posted by Lisa in Oz
Posted by Lisa in Oz on March 29, 2000 at 13:35:52:
After graduating college with a Bachelor of Business and moving to Australia with my new Aussie hunk, I was unable to get a job for the first time in my life. I had never been turned down for any job I ever applied for. Over three years, I applied for many jobs and sent out over two hundred copies of my resume. I finally landed a job with Toys R Us building shelves. Do you think I was depressed? You better believe it. Especially when I had been told (off the record) by a friendly Human Resources Director that I wasn’t getting interviews because I was American. Anyway . . .
To make myself feel better and to use up time, I started working on my house which was an older home. We sold that for a big profit. During this time, however, I was still looking for a job and getting beat up and feeling pretty worthless (you know, you’re not worth anything unless you’ve got a JOB). The next house we sold (yes, we moved a lot) made us over $70,000 in 18 months. The third one sold and made us an approx. $142,000 cap. gain–we were there about 18 to 24 months. After the third time, it finally smacked me in the face that I not only didn’t want a job, but I couldn’t have made the same kind of money.
It’s about educating yourself. I don’t recommend moving every 18 months though–there are easier ways.
Good luck to you.
Lisa Charles
“Lisa in Oz”
Jumped in head first. - Posted by Branden
Posted by Branden on March 29, 2000 at 10:58:16:
It’s different for everyone and depends alot on your financial needs, personality, & family life. When I started in real estate I quit my job and jumped in head first. There were several factors involved. I came to the realization that I could quickly replace my job income by focusing full-time, for a short amount of time on real estate. Within 3 months I was making more in real estate that I did at my job. Obviously there are other ways. I could’ve kept my job and worked at investing slowly, but I’d probably still be working at my job and real estate would’ve gone by the wayside. My motivation came mostly from the fact that I did not like my job and had a great desire to be self-employed. It was a little nerve-racking to begin with, primarily because I had a wife, a 1 year old, no job, and no income. If you’re single you have little to lose. If you’re married, but broke, you have nothing to lose either. Looking back today I wouldn’t have traded it for anything.
Re: Had no choice - Posted by chris
Posted by chris on March 30, 2000 at 02:54:54:
Lisa-
Sorry to be a pest but you got me curious:
What is it that the Australians do not like about Americans?
-Thanks, Chris
Re: Had no choice - Posted by Cindy
Posted by Cindy on March 29, 2000 at 20:54:56:
My question is HOW do you start to educate yourself? My man & I have had several duplexs and single family homes, claiming the income and exp every year, no big deal. But Now… my man is the fixer upperkinda guy, 1 year ago march quit working as a pipefitter to do this fixer upper thing. This year we have already sold 2 homes for approx $70,000.00 capital gain. We just purchased two more homes and are in the process of fixin. But I am scared silly as to how much we will have to pay in capital gains. I have contacted an attorney, he says i should probebly start a business for tax savings but wont advise me which “business”. So i contacted a CPA, he dont wanna talk to me for less than $150 per hour. But I dont even know where to start. HELP! I am in Ann Arbor Michigan.
US vs Aus - Posted by Chris in AL
Posted by Chris in AL on March 31, 2000 at 24:43:47:
Just a comment-
I went to college (Auburn University) for Building Construction. Lots of my friends saw how Atlanta exploded just before the Olympics, and tried to get a job with Aussie Construction firms preparing for this summer’s Olympics. I was told that Aus has (or had) pretty bad unemployment, and the gov’t was not happy with hiring more outsiders while their own citizens were out of work.
That may have something to do with it.
Chris in AL
Re: Had no choice - Posted by Rick
Posted by Rick on March 31, 2000 at 19:34:37:
By all means shield your income from taxes however you can. However, don’t forget, it’s better to have an income tax problem than an income problem!
You’ve already started! - Posted by Lisa in Oz
Posted by Lisa in Oz on March 30, 2000 at 12:02:26:
Chris gave you good advice as far as checking out Bill Bronchick’s info. here in the CRE archives and in the Legal Corner. When you hold real estate, you generally want the asset/liability protection and the tax benefits of having one or more legal entities (i.e., corporations, trusts, etc.). Check his stuff out.
How do you educate yourself? You must have the self-discipline to seek out knowledge rather than watching t.v. or going bowling (not picking on you personally). Ask questions here online, borrow books from the library, buy some courses, ask “old-timers” in your area of interest, do some more deals. Lots of ways to get educated–you have to want it more than anything.
Good luck Cindy,
Lisa in Oz