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Fixed Income Focused / Re: Individual Muni Bond and ETF
« Last post by titlewealth on August 25, 2020, 08:20:33 PM »
If you can get a tax equivalent yield of about 3-4%, it might be good to get in on Munis. I've been looking into doing the same. Which State are you in and what are you currently looking at?

As you know, high yield savings accounts are now returning less than 1%. So there is not much out there that is safe and giving some kind of return. I have some cash sitting in pool bonds that return a fixed 5% but those have higher risk that munis.
Career Growth Strategies / Re: If anyone working in the Google?
« Last post by titlewealth on August 25, 2020, 08:17:13 PM »
I don't work for Google but my cousin and a few of my friend do.

Are you trying to join Google in which area? Sales? Marketing? Product? Developer?
I have an account with Crowd Street and was considering adding to it but my look into Realty Mogul again in an effort to diversify just in case something happens to these platforms. But is the timing right to put money into Real Estate right now? or better hold the cash for a couple more months?
Reading through this has me concerned about my exposure in PeerStreet, CrowdStreet, Fundrise and others...

These platforms all require deal flow to exist, right? Without it, they perish. This causes two problems, IMHO, both of which we've all seen firsthand. First, they're likely to put deals up that are sketchy if their cashflow is in trouble (which they'll never reveal to investors), and what happens to the deals when the site goes away? I've cut way back on my crowdfunding investments since RS collapsed, but still have picked up a few. EM seems more transparent than RS ever was. Crowdstreet as well but I think it has vetting issues. For both it looks like the deals can survive on their own far better than RS if the site goes down (from my reading of the contracts). RealCrowd might be alright as well. Regardless, overall I've looked at proposals with a far more skeptical eye in the last year. Live and learn I suppose.
I invested in 2 RealtyMogul deals, their Reit I and a mobile home rollup. Both great.

I haves spend on my engagement ring $350. It's my half month salary.
I've had no problem with Fundrise or Realty Mogul. Not one investment has lost money. Most of my investments with Realty Mogul have made huge profits. Which has REALLY made the "Realtyshares" fiasco stand out. I've made perhaps 40 Crowdfunding investments. ALL 10 investments with Realtyshares have had problems, while ANY investment with another agency has done well. Realtyshares is really the Pig on this farm.
Thanks for the quick response, much appreciated. It is certainly a high cost of living area, and I have limited options to  reduce my housing costs other than buying a smaller home. The area that we are specifically looking at has a premium associated with it, yet nearly 1% lower property taxes relative to neighboring towns. It certainly sounds like I am going to be in the  wheelhouse financially, yet would be in a much more comfortable spot if I can continue to grow my income, which is always a crapshoot with very limited visibility or control over the next five years.

Regarding how much I was planning on putting down, I am thinking of pledging my investment portfolio instead of putting down a down payment. I can’t think of many reasons to use a down a down payment (other than Reducing my monthly nut) given I would think I can do better than 3% over the next 20 to 30 years. It is certainly intimidating to have a large monthly nut, yet  would think the financial arithmetic would lend itself to having the money freed up in my investment account. Additionally, I don’t pay a premium or any costs associated with pledging my assets. It would be around $350Kish freed up assuming a 20% down payment on my price point.

Additionally, I do not envision much, if at all, appreciation over the next decade or so given the demographic trends of very expensive/high tax areas within the Northeast. I simply want to get confirmation that I am in the wheelhouse of what is appropriate to spend and I’m not overreaching too much. Thanks for all of your interest and feedback and would appreciate  more of it!
Reading through this has me concerned about my exposure in PeerStreet, CrowdStreet, Fundrise and others...

I have been in Fundrise since last fall and I think they have a more conservative approach.  I got burned to some extent by RealtyShares, but hopeful that I will recoup all my principal for a small net return overall (~4%).   Fundrise has have been more transparent and provided updates during COVID-19 showing how they have a net small + performance compared to the overall markets.  They are focused more on residential investments that seem to hold up better, but would appreciate any other thoughts or insights.  I "joined' RealyMogul, but have not invested.  Somewhat gun shy after my mixed experience at RealtyShares.

We were thinking of spending around 1.75M with approx 1.2% property taxes. Additionally, we are open to an interest only mortgage option to make the payments more manageable or a 10/1 Arm.  Do you think that is reasonable or too much money to spend on a house. Any feedback would be greatly appreciated! Thanks.

It's a lot to wrestle with -- and you probably live in a HCOL area.   That being said, my rule of house buying at higher income levels is no more than 3 to 4x annual salary, IF you want to be free financially.   Some people are comfortable with owing on a house forever --I am not.   But with the idea of financial freedom, it means borrowing less -- with the intent to eventually not have to owe anything, or manage a low debt burden for the advantages of debt without the risk of a cash crunch if the markets go against you.   

You didn't mention what size down payment you're making, which would be a factor.   I would for sure steer clear of an interest only or ARM when rates are so low.   Lock in at 30 years and forget it -- you can always pay more if you want to pay it off faster.

We're in a time of extreme uncertainty.    It's anybody's guess as to whether housing costs are going to rise significantly or crash.   The markets would have you believe today that they're going to rise significantly, but the next 6 months could shift that view, quite a lot.   Its a time when we're seeing both inflation and deflation at the same time, depending on what goods you're looking at.  Crazy.

To put my money where my mouth is, I've recently purchased a home (mid-covid-crisis).   I did a lot of research and managed to spend around 3x my salary (borrowing only 1x).    This way I have plenty of cash flow to manage an up or down market, but still benefit from overall market appreciation (if it happens), inflation (if it happens, making debt easier to carry) and tax deductible mortgage interest.   

All that to say, I think you're pretty close to the sweet spot, if you believe that your job is likely to continue, even if things get considerably worse economically.   My only caution is that 1.75M would make it a outsize portion of your net worth... so you'll definitely need to work for quite awhile to FIRE, if that's your goal.

Hope that's helpful!   My two bits...
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