Don’t Criticize, Analyze

I’ve done some somewhat controversial moves in the eyes of the main stream these last few weeks. I elected to pay the 10% penalty on one of my 401ks to fund a seven unit rental property. I did this for a couple of reasons. 1) I’m still lacking a long rental track record and most of the banks weren’t comfortable refinancing one of my fully paid off properties to make the down payment for the seven unit. 2) I just got married and while my wife isn’t working our tax rate will be lower, given tax rates today. 3) I think tax rates will go up in the future and assume pay them now. 4) This real estate deal gives us more control and allows for gains in cashflow, loan paydown, tax benefits, and possible appreciation. I’m projecting within 3 years we’ll be better off vs staying in the 401k, but we’ll see.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 5/20/2021 column is the closing NW from the 5/10/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 5/20 column are the changes that I estimated on 5/10). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. One can see money going from the retirement accounts into cash. Unfortunately Bitcoin went down.

NW/Learning Wins:

  • Got approved for financing on a seven unit rental property
  • My brother and I met with Nik Bhatia to outline our future podcast episode on his book, Layered Money
  • Got my first Amazon sale using paid targeted marketing (the $13 in profit from the sale cost about $6 and made about 6k impressions on Amazon users)

Ideas for increasing NW/Learning

  • Look for promotions for my books. Examples would be doing some book drawings. Looking to possibly link up with a tutoring company.
  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well. Should I just control the book sales in the same corporation as my real estate in Michigan?
  • Tell one person per day about The Brothers on Books Podcast


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