So how much $$$$ are you going after?

What happened to porter & aaron's posts?

 

 

 

Pulled my posts and Aaron's. Just going to read instead.

http://www.irs.gov/publications/p936/ar02.html

 

So I should be getting a gigantic return then from both properties. My wife and I file single, pay a pretty penny in taxes throughout the year, and have been getting only $4000-$5000 a year back.

 

First year filing with 2 properties though....

So I should be getting a gigantic return then from both properties. My wife and I file single, pay a pretty penny in taxes throughout the year, and have been getting only $4000-$5000 a year back.

 

First year filing with 2 properties though....

 

The $4000 number really doesnt tell you anything...

You need to know how much you withhold, your tax liability, and interest paid.

 

Why file single? That cpould be screwing up your itemized deductions.

 

What you do is use the mortgage deduction (and other itemized deductions) to reduce your AGI- hopefully to the extent that it reduces AGI to a lower progressive tax bracket.

The $4000 number really doesnt tell you anything...

You need to know how much you withhold, your tax liability, and interest paid.

 

Why file single? That cpould be screwing up your itemized deductions.

 

I dont really know much about filing taxes to be honest. My accountant has been a CPA for 30 years and does my parents taxes, so I follow his instruction.

 

Could also be different in Florida as we don't have a State Income tax as far as how we file, and the pros and cons of filing joint and separately.

 

I dont own a business, so I dont have the benefit of writing off a ton of items.

 

I do however have friends that have CPA's that push the envelope, and they get much higher returns than I do...More than double.

 

 

Sorry to mess up the dream income thread with my tax junk.

I dont really know much about filing taxes to be honest. My accountant has been a CPA for 30 years and does my parents taxes, so I follow his instruction.

 

Could also be different in Florida as we don't have a State Income tax as far as how we file, and the pros and cons of filing joint and separately.

 

I dont own a business, so I dont have the benefit of writing off a ton of items.

 

I do however have friends that have CPA's that push the envelope, and they get much higher returns than I do...More than double.

 

 

Sorry to mess up the dream income thread with my tax junk.

 

That may be it.... Not enough deductions to itemize....

Pulled my posts and Aaron's. Just going to read instead.

 

I know why lol.

I know why lol.

 

 

Haha of course you do. Aaron does too lol

How much do you value working your own schedule with the freedom to not work as you see fit, take 1/4 days or just work 3 to 4 hrs a day? Where does that factor in the schedule of goals?

 

 

Pulled my posts and Aaron's. Just going to read instead.

 

Me to, I felt poor

How much do you value working your own schedule with the freedom to not work as you see fit, take 1/4 days or just work 3 to 4 hrs a day? Where does that factor in the schedule of goals?

Very high. My current goal is to not have a boss and make enough to get buy as I do now.

I dont really know much about filing taxes to be honest. My accountant has been a CPA for 30 years and does my parents taxes, so I follow his instruction.

 

Could also be different in Florida as we don't have a State Income tax as far as how we file, and the pros and cons of filing joint and separately.

 

I dont own a business, so I dont have the benefit of writing off a ton of items.

 

I do however have friends that have CPA's that push the envelope, and they get much higher returns than I do...More than double.

 

 

Sorry to mess up the dream income thread with my tax junk.

 

Gotta have real estate for the tax deductions....in the US at least.

 

It's the biggest gift (only gift?) the US Gov't has given us...use it.

The reason I mentioned the mortgage piece is even at 4-5%, you end up paying 1 1/2X-2X what the home is worth over 30 years by not paying it down quick enough. I would not pay it off at one time with cash vs. starting a potentially lucrative business with that money to your point. I would add a full year of principal payment every year and pay the balance down much quicker.

 

A $250,000 loan at 5% will cost you $483,000 by the time it is paid off over 30 years. If you double your mortgage payment monthly, it will take you 11 years to pay it off, and save you TONS of money in interest, on top of having an additional asset paid for in your RE Portfolio which could pay you if you decide to move. This is what I plan to do.

 

I love cars and flash, but it is more impressive to me to see someone who has a big house, cars, and toys that are paid for. Anyone can finance a huge house and nice car with the right credit score and income.

 

Mike it depends on the type of business you are in, for example in 60 days I will need $4mil for 6 to 7 months max, how long it will take you to amass that through savings?

It doesn't make commercial sense to keep that amount in TD when there are investments that bring you 3 times the return and you can borrow against them, generate the asset pay back debt to a level you are comfortable with allow those assets to start producing passive income.

Having money in TD will hurt you more than help you; interest that you pay is tax-deductible you use your own money for a relatively quick turn around transaction you lose the deduction, you could charge your company interest but you would be paying capital gains on the interest you've collected from your company, vicious circle, I could go on and on, I am sure we have few accountants on LP that could expand on the pros and cons.

 

Mike don't be too concerned with the numbers, interest equal cost of convenience , you MUST think bigger and take calculated risks.

I think paying your house off in 11 years is too long, one good transaction and your house can be paid off in 30 days.

That's how you have to think and trust me it is 100% possible, life is too short to be counting pennies, live in the present not the future.

 

The things that matter most is trusting yourself, being responsible with the $$ and obviously being very good at what you do.

I'd love to hear more about your ideas on this Fortis!

 

But I have to agree, with the tax deduction and lost "opportunity cost" in not having that $$$ quickly available, it seems myopic to pay it off so quickly, that is if it's your only RE holding. Once you amass a small empire then by all means.

Long term goal: 9 figures (worth) before age 39.

 

As far as yearly, Im shooting for the numbers I need to hit to make it happen

Soo much information and wisdom in this thread, thanks guys!

Mike it depends on the type of business you are in, for example in 60 days I will need $4mil for 6 to 7 months max, how long it will take you to amass that through savings?

It doesn't make commercial sense to keep that amount in TD when there are investments that bring you 3 times the return and you can borrow against them, generate the asset pay back debt to a level you are comfortable with allow those assets to start producing passive income.

Having money in TD will hurt you more than help you; interest that you pay is tax-deductible you use your own money for a relatively quick turn around transaction you lose the deduction, you could charge your company interest but you would be paying capital gains on the interest you've collected from your company, vicious circle, I could go on and on, I am sure we have few accountants on LP that could expand on the pros and cons.

 

Mike don't be too concerned with the numbers, interest equal cost of convenience , you MUST think bigger and take calculated risks.

I think paying your house off in 11 years is too long, one good transaction and your house can be paid off in 30 days.

That's how you have to think and trust me it is 100% possible, life is too short to be counting pennies, live in the present not the future.

 

The things that matter most is trusting yourself, being responsible with the $$ and obviously being very good at what you do.

 

Thanks for your reply. Few questions. What is a TD? Normally I would assume Tax Deductable, but it doesn't work IMO in the context you are using it, so is it something else?

 

In other words you are saying use my savings and leverage to take calculated risks as investments as opposed to paying down my mortgage so the end result would be that I could pay my mortgage off quicker and also have additional passive income correct?

 

I am VERY responsible with my money and am extremely conservative as there are too many ponzi schemes and too much fluctuation in the markets and commodities these days. I invest 5% of my income in a 401k which made me 48% ROI on my invested money last year. I keep 6-8 months of living expenses in savings, and once I have more revolving debt/fixed debt paid off, and contribute double my mortgage monthly. I wanted to do as follows: Max out 401k to company match limits, Additional passive income split between high interest savings account and investments (Stocks/Bonds/Mutual Funds/Commodities) 40%/60% split. Amass enough in savings/investments where I can start my own business in 2-3 years. My goal is to have a working business plan by end of 2011 (New Years Resolution).

 

Thoughts on these goals?

 

I feel it is a good spread of investments, and can get me to reach my goals, all while providing financial security to my family. If I was single, I could quit my job and go for the gusto with starting a business, but I have 2 mortgages, and cannot afford to live on my wifes income in pursuit of this at this point.

 

Obviously even close to currently being in the same ballpark as BMWRACER, Porter, VBOXKING, Peakcompletions, but Ive got to start somewhere.

 

What I am going after to answer the OP-Financial security for my family and my childrens-children. I am after never being worried about losing my job, or worrying about a business failing and not having money to feed my family (when I have kids). I am after being able to take a 4 month vacation at a whim. I am after the peace of mind that my grandchildren will be better off than I was at birth.

 

Am I ever afraid to fail in business-No. I don't believe I will ever completely fail in business as I work too hard and too smart to fail, and can negotiate with the best of them. I do however want to go in not having to worry about the ups and downs.

Thanks for your reply. Few questions. What is a TD? Normally I would assume Tax Deductable, but it doesn't work IMO in the context you are using it, so is it something else?

 

In other words you are saying use my savings and leverage to take calculated risks as investments as opposed to paying down my mortgage so the end result would be that I could pay my mortgage off quicker and also have additional passive income correct?

 

I am VERY responsible with my money and am extremely conservative as there are too many ponzi schemes and too much fluctuation in the markets and commodities these days. I invest 5% of my income in a 401k which made me 48% ROI on my invested money last year. I keep 6-8 months of living expenses in savings, and once I have more revolving debt/fixed debt paid off, and contribute double my mortgage monthly. I wanted to do as follows: Max out 401k to company match limits, Additional passive income split between high interest savings account and investments (Stocks/Bonds/Mutual Funds/Commodities) 40%/60% split. Amass enough in savings/investments where I can start my own business in 2-3 years. My goal is to have a working business plan by end of 2011 (New Years Resolution).

 

Thoughts on these goals?

 

I feel it is a good spread of investments, and can get me to reach my goals, all while providing financial security to my family. If I was single, I could quit my job and go for the gusto with starting a business, but I have 2 mortgages, and cannot afford to live on my wifes income in pursuit of this at this point.

 

Obviously even close to currently being in the same ballpark as BMWRACER, Porter, VBOXKING, Peakcompletions, but Ive got to start somewhere.

 

What I am going after to answer the OP-Financial security for my family and my childrens-children. I am after never being worried about losing my job, or worrying about a business failing and not having money to feed my family (when I have kids). I am after being able to take a 4 month vacation at a whim. I am after the peace of mind that my grandchildren will be better off than I was at birth.

 

Am I ever afraid to fail in business-No. I don't believe I will ever completely fail in business as I work too hard and too smart to fail, and can negotiate with the best of them. I do however want to go in not having to worry about the ups and downs.

 

TD = term deposit

TD = term deposit

 

Thanks

I've always had the goal to be a millionaire by 21.

Pikemike, you wear heart (and your financial details) on your sleeve....for that you should receive all the good advice that's coming to you. I know there are members receiving advice vicariously through you, so that alone is a service to the community.

 

Best of luck to you in your situation....I know it's tough out there.

 

If things don't work out as planned, I'm sure that that the City of Miami has a $500k/yr P.R. job with your name on it.

Pikemike, you wear heart (and your financial details) on your sleeve....for that you should receive all the good advice that's coming to you. I know there are members receiving advice vicariously through you, so that alone is a service to the community.

 

Best of luck to you in your situation....I know it's tough out there.

 

If things don't work out as planned, I'm sure that that the City of Miami has a $500k/yr P.R. job with your name on it.

 

Some yes, some no. I would not divulge annual income data, monthly income data, etc. Only share some of where I am at in life currently (as much as I can without going to far into my details online) and where I want to be. I use some of our membership as a guide in between the 2 points in time.

 

I also am not in any bad situation. Actually a fairly good one where I have passive income that I can place into different avenues to generate more passive income by either paying down debts or increasing my investment portfolio.

 

I know I don't know everything, nor do I intend to come off as I do. I am FAR better off financially than 80%-90% of the guys my age in the US. I aspire to be in the top 1%-2%. I try to absorb as much information as I can everyday from those whom it makes best sense to absorb from. Sometimes, I am much more forthright than I should be in an online comminity, but it should reap the benefits of good advice.

 

$30,000-$50,000 passive monthly would be more than enough for me.

Thanks for your reply. Few questions. What is a TD? Normally I would assume Tax Deductable, but it doesn't work IMO in the context you are using it, so is it something else?

 

In other words you are saying use my savings and leverage to take calculated risks as investments as opposed to paying down my mortgage so the end result would be that I could pay my mortgage off quicker and also have additional passive income correct?

 

I am VERY responsible with my money and am extremely conservative as there are too many ponzi schemes and too much fluctuation in the markets and commodities these days. I invest 5% of my income in a 401k which made me 48% ROI on my invested money last year. I keep 6-8 months of living expenses in savings, and once I have more revolving debt/fixed debt paid off, and contribute double my mortgage monthly. I wanted to do as follows: Max out 401k to company match limits, Additional passive income split between high interest savings account and investments (Stocks/Bonds/Mutual Funds/Commodities) 40%/60% split. Amass enough in savings/investments where I can start my own business in 2-3 years. My goal is to have a working business plan by end of 2011 (New Years Resolution).

 

Thoughts on these goals?

 

I feel it is a good spread of investments, and can get me to reach my goals, all while providing financial security to my family. If I was single, I could quit my job and go for the gusto with starting a business, but I have 2 mortgages, and cannot afford to live on my wifes income in pursuit of this at this point.

 

Obviously even close to currently being in the same ballpark as BMWRACER, Porter, VBOXKING, Peakcompletions, but Ive got to start somewhere.

 

What I am going after to answer the OP-Financial security for my family and my childrens-children. I am after never being worried about losing my job, or worrying about a business failing and not having money to feed my family (when I have kids). I am after being able to take a 4 month vacation at a whim. I am after the peace of mind that my grandchildren will be better off than I was at birth.

 

Am I ever afraid to fail in business-No. I don't believe I will ever completely fail in business as I work too hard and too smart to fail, and can negotiate with the best of them. I do however want to go in not having to worry about the ups and downs.

 

Sorry Mike it is Term Deposit I was talking about.

 

I have no idea what a 401k is never invested in the following (Stocks/Bonds/Mutual Funds/Commodities) and never will.

I will only invest in myself I like to be in control of my own destiny

We are all different, I thrive on taking risks, they are all calculated but they are still risks, you have to find the limit of your comfort zone I guess.

 

Why wait to start your business? Do it now, life is too short and the banks have plenty of money, they don't want to give it up now but they still do have plenty of it

 

 

 

Sorry Mike it is Term Deposit I was talking about.

 

I have no idea what a 401k is never invested in the following (Stocks/Bonds/Mutual Funds/Commodities) and never will.

I will only invest in myself I like to be in control of my own destiny

We are all different, I thrive on taking risks, they are all calculated but they are still risks, you have to find the limit of your comfort zone I guess.

 

Why wait to start your business? Do it now, life is too short and the banks have plenty of money, they don't want to give it up now but they still do have plenty of it

 

No worries

 

401k is a retirement account.

 

I need to have funds to invest into whatever I start. I already know the general area of business I will get into, but when depends on having the funds to launch and operate it succesfully and not counting on immediate profitability. Hence the not now part.

 

Banks do have plenty of money. Leverage is good in business. Overleverage will also get you out of business very quickly as witnessed in the last 5-7 years.

 

I have been in researching mode lately. Looking at business models, business plans, startup costs, RE Costs, etc.

 

$30,000-$50,000 passive monthly would be more than enough for me.

 

You think so?

Remember you will not be spending at the same level if you do don't even bother chasing it, it will just be a number in the bank

 

It is not money one should be chasing, it is a combination of things, having money doesn't mean much, you can be miserable if you are a billionaire and on top of the world if you call a tent in a park your home.

Money gives you security and obviously nice things, you can do without the nice things, the best thing you get is the felling of security/safety.

 

Success is what I am chasing money ALWAYS follow, how much of it? As long as I don't lose Who cares? I certainly don't, I spend whatever I get without touching the cash cow, I add a new cow every chance I get but without risking the wellbeing of the cows I already have in the stable

 

don't get too fixated on certain amounts strive for success.

No worries

 

401k is a retirement account.

 

I need to have funds to invest into whatever I start. I already know the general area of business I will get into, but when depends on having the funds to launch and operate it succesfully and not counting on immediate profitability. Hence the not now part.

 

Banks do have plenty of money. Leverage is good in business. Overleverage will also get you out of business very quickly as witnessed in the last 5-7 years.

 

I have been in researching mode lately. Looking at business models, business plans, startup costs, RE Costs, etc.

 

Good Luck to you I sincerely mean it, I want you to do whatever you feel comfortable with as I said we are all different when it comes to taking risks.

 

Having said that I feel you are quite negative about things, I know some will call it being cautions but I say negative

Until you change your mind set you will be your worst enemy.

I am not asking you to go out and risk everything you own I am only saying that you should give yourself a lot more credit and take few chances if you believe in yourself, have a positive attitude and never say it can't be done.

 

I don't mean to critique you please accept my apologies if it comes across that way.