Posted on February 5, 2010 @ 4:00 am - Written by BawldGuy
Ever walked into a movie you’d really been lookin’ forward to, only to learn they’d totally mislead you with the trailers? We all have, and with an exception or two here and there, it rarely turns out to be a movie we like. Don’t ya hate it when the happens? For me, the worst time was when I went to what I thought was a comedy, which sadly turned out not only NOT a comedy, but a chick flick to boot. How it got past my ChickFlickRadar™ I’ll never know. 
This is one of those nuts ‘n bolts things every real estate investor should know. The IRS doesn’t usually buy the whole ‘dog ate my homework’ — ‘I had no idea’ type of excuse when it comes to unintentionally recognized capital gains. So, heads up. Read the rest of this entry »
Posted on February 3, 2010 @ 8:46 am - Written by BawldGuy
Early last month I wrote a piece about growing capital and creating solid cash flow, much of it sheltered, while experiencing no appreciation whatsoever. The bottom line was surprising to many. Their capital nearly quintupled — while simultaneously creating reliable retirement income. Regardless of whether the capital grows by a factor of four or five, or less, the result will be far more palatable than a 40% loss a few years before your scheduled retirement, which is what’s happened to so many good people.
BawldGuy Axiom: Figuring return on disappearing capital is oxymoronic. Treating appreciation as anything but a luxury is akin to walkin’ in an unmapped minefield. Read the rest of this entry »
Posted on February 2, 2010 @ 10:31 am - Written by BawldGuy
Written By — David Shafer
Most financial products need to be properly structured to get the best performance. EIULs are especially needy in this matter. If there is an Achilles heal in EIULs it is that most insurance agents don’t have the experience to structure them for the best performance. Add in the fact that many insurance companies are more interested in attacking other company’s products than in educating their agents and you have a troubling problem. Real estate investors understand this, because they have seen the massive amount of RE investment failure over the last couple years due to folks not knowing what they are doing in the real estate world.
Each individual has a slightly different need and slightly different circumstances to build from. For the point of this post, I will assume that the client has the ability to max-fund the EIUL and is looking for tax free retirement income or tax free money to their heirs. Universal life insurance has much flexibility built into the product which allows us to consciously keep expenses down and performance up. Read the rest of this entry »
Posted on January 28, 2010 @ 5:00 am - Written by BawldGuy
Been a busy BawldDude lately. The transition to a multiple author format is one I’ve taken very seriously. Anyone I choose to write here must be, to use a highly technical term, a slam dunk expert in their field. So far, Wall Street trader icon Max Whitmore, the first such contributor, has been incredible. Understand though, as soon as our subscription site is up, he’ll be writing there only.
David Shafer is the man when it comes to the EIUL. David Stejkowski is the most experienced real estate attorney (DirtLawyer) I’ve ever met. Anyone who’s closed over a billion dollars in transaction has my attention.
Soon, I’m hoping I’ll be able to persuade Tom Vanderwell to join us too. He’s one of the two or three lenders I’ve met who know which way is north on the map — and in a big way. The guy is the real thing. Read the rest of this entry »
Posted on January 11, 2010 @ 12:46 pm - Written by BawldGuy
Readers: As I’ve written recently, this blog will be expanding to a multi-author format, while remained focused like a laser beam on real estate investment for retirement through a Purposeful Plan. David Shafer is a welcome addition to say the least. I’ve written about EIULs often on these pages — David has been my go-to expert on the subject. Though he’s written here a few times as a guest author, he now part of the BawldGuy Talking family. The following is his initial post. Welcome, David.
Written By David Shaffer
Hello all. When Jeff asked me to be a contributor to his blog, I jumped at the chance. As a regular reader of Bawldguy and someone that has gotten to know Jeff on a personal level, I have received much wisdom on a whole host of topics. The offer to give back to his readers some of the wisdom I have on using life insurance to fund retirement is something I look forward to doing.
This first post will give the reader a general idea about the insurance product, Equity Indexed Universal Life insurance, which I believe best carries out the strategies we will talk about going forward. Read the rest of this entry »
Posted on January 6, 2010 @ 8:01 pm - Written by BawldGuy
Short and sweet tonight. Been recovering from the whole revenge of the sinuses thing.
If you have a 401k from a previous employer, it’s probably convertible to what’s known as a Self-Directed IRA. This would not entail taxes or penalties, and can be done relatively simply and quickly, especially with the help to which I can point you.
Why would you wanna do this? Simple — you’d be in virtually total control of your funds, which would allow you to acquire, if you were so inclined, well located cash flowing real estate. I can turn you on to a lender specializing in such loans.
Speaking of said loans, that’s even more good news. They’re what’s known as non-recourse — which means the lender can’t go after your plan or you if things go to hell in a hand basket. Furthermore, they’re barred by federal law from requiring a personal guarantee. It’s the best of all worlds.
You can use the strategy I wrote about yesterday. Or, much mo betta, you can use your Roth IRA if you have one, which will be just about golden when using last night’s strategy.
OK, that’s it — short and sweet. To talk with me, call 619 889-7100. Have a good one.
Posted on January 5, 2010 @ 5:19 pm - Written by BawldGuy
Lost a ton in your 401k at work? Most show about 35-45% losses from their peak. Man, that hurts just to write it. Here’s a way you can very safely and prudently build a basket of retirement income without bankin’ on any appreciation. I promise — you can do it.
Here’s an example, using real properties recently purchased by real clients. I’m gonna modify some of the numbers, but the modifications will not in any way make the bottom line better by an inch. (Worse in fact.)
What if you paid $245,000 apiece for four properties, each with an annual gross scheduled income of $28,800. The renters sign year long leases, and tend to stay a little longer than two years. We’ll set the operating expenses and vacancies at just under 40% — $10,950 a year. This results, when using currently available loans, in a negligible cash flow of less than $250 monthly — essentially a break even. Read the rest of this entry »
Posted on December 23, 2009 @ 7:12 pm - Written by BawldGuy
Over the years, especially when the cycle has reached it’s predictable low point, the so-called experts come outa the woodwork, giving advice that frankly, makes my blood boil. I’m not anyone’s judge, nor will I do that on these pages. I will, however, point out an example of how bad advice can hurt innocent people who rely on the experience and expertise of those who simply don’t possess either.
Sound harsh?
One of the topics these folks talk about so recklessly is how real estate investors (Homebuyers too for that matter.) can buy properties ’subject to’ the existing financing. Sounds pretty innocuous doesn’t it? You’ll just march right in, put yer money down, close the escrow and start makin’ payments on the seller’s old loans. Sounds simple enough to me — not. Read the rest of this entry »