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GNL says

If you have or expect to acquire generational wealth, give an enormous amount of thought to who and how you want to disperse that wealth

Distant relatives in Poland.

Booger says

GNL says

If you have or expect to acquire generational wealth, give an enormous amount of thought to who and how you want to disperse that wealth

Distant relatives in Poland.

Aren't they all Nazis?

RWSGFY says

Booger says

GNL says

If you have or expect to acquire generational wealth, give an enormous amount of thought to who and how you want to disperse that wealth

Distant relatives in Poland.

Aren't they all Nazis?

That's what Israel says when they try to grift money off from them. Poland was the only Nazi occupied nation where instead of the government giving up, went entirely underground for the duration of the war. The government never surrendered, they just got beaten.

GNL makes a good point.
About a day after my father died my older brother reminded me not to forget to name his son and daughter as beneficiaries of my accounts (I have no children).
I didn’t like his comment.
My girlfriend is the beneficiary of a few of my accounts.
I’m going to have several, maybe make multiple people 10% beneficiaries.
I’m curious who will prepare my tax return after I die; I prepared my father’s final tax return.
Presently I am annoyed by the sloth, greed, and envy I have noticed among some females.
They won’t be rewarded.

clambo says

GNL makes a good point.
About a day after my father died my older brother reminded me not to forget to name his son and daughter as beneficiaries of my accounts (I have no children).
I didn’t like his comment.
My girlfriend is the beneficiary of a few of my accounts.
I’m going to have several, maybe make multiple people 10% beneficiaries.
I’m curious who will prepare my tax return after I die; I prepared my father’s final tax return.
Presently I am annoyed by the sloth, greed, and envy I have noticed among some females.
They won’t be rewarded.

Wealth that is not labored for is squandered. It also makes most people useless slugs and worse. I have a strong distaste for most wealthy people that I have ever met that did not earn their wealth. All I'm saying is, there is more than 1 way to ruin your children. Giving them too much money is one of them.

GNL says

clambo says

GNL makes a good point.
About a day after my father died my older brother reminded me not to forget to name his son and daughter as beneficiaries of my accounts (I have no children).
I didn’t like his comment.
My girlfriend is the beneficiary of a few of my accounts.
I’m going to have several, maybe make multiple people 10% beneficiaries.
I’m curious who will prepare my tax return after I die; I prepared my father’s final tax return.
Presently I am annoyed by the sloth, greed, and envy I have noticed among some females.
They won’t be rewarded.

Wealth that is not labored for is squandered. It also makes most people useless slugs and worse. I have a strong distaste for most wealthy people that I have ever met that did not earn their wealth. All I'm saying is, there is more than 1 way to ruin your children. Giving them too much money is one of them.

this young guy i know, sad story. inherited dads wealth, a lot of it. gets 300k a year distribution. doesn’t do a damn thing, just squanders it away, no work, all play. nice guy, but has no goals in life.

FortwayeAsFuckJoeBiden says

Wealth that is not labored for is squandered. It also makes most people useless slugs and worse. I have a strong distaste for most wealthy people that I have ever met that did not earn their wealth. All I'm saying is, there is more than 1 way to ruin your children. Giving them too much money is one of them.

this young guy i know, sad story. inherited dads wealth, a lot of it. gets 300k a year distribution. doesn’t do a damn thing, just squanders it away, no work, all play. nice guy, but has no goals in life.

I've known a few trustfunders and most of them are the same...anchorless. One I know even couch surfed for years until his mom died and left him her nursing home empire. He knew he was going to get the money and was willing to simply smoke weed and couch surf until it happened. My son inlaw is unique in that he and his twin brother were adopted. He hit the lottery three times...1. was adopted (many are not adopted) 2. adopted by a wealthy family and 3. was given a trust fund. He works at a doggy day care. At least he works. The biggest problem is he is rudderless while acting as if he himself is worthy of some kind of admiration. He is rude, doesn't care about others and is controlling. I'm not sure the marriage will last. Hmm, that makes me think of a good question to ask the group.

I had a girlfriend whose father was very rich, but he made a point of making her work for a living - until she got married and had a few kids. Then he gave her a nice house.

GNL says

@Eman,

I know you're not asking for any advice but, I'll give you some anyway.

If you have or expect to acquire generational wealth, give an enormous amount of thought to who and how you want to disperse that wealth. I have a son inlaw who's grandfather built quite a real estate portfolio. I would give you their website but I don't think that would be wise of me. The family owned REIT has about 7,000 rental units, hotels and 1,000,000 square feet of commercial space. My son inlaw has a trust fund. He is a self absorbed idiot.

All constructive advice are welcome. I haven’t put much thought into it although we have a trust and will in-place in case anything happens to us.

I’ve been very happy with my life. I would die a happy man at the age of 50 rather than live and work a W2 till the age of 70. That’s how much I appreciate the life I have now.

I told my wife if I happen to grow our net worth to $100M or even $1B, I’d like at least half of it go to the nieces and nephews on both sides of the family (15 of them) and half goes to our daughter.

I want to build a real estate portfolio that’s big enough to support a few W2 employees so that if some nieces and nephews who want to continue my footsteps can run it and continue to grow the portfolio and build wealth for the entire nuclear family. All the kids will get equal share of the annual distribution after expenses.

While I’m still alive, I want to do a ton of donations to orphans and disabled elder organizations in our country. We have a few that we’ve been sending money back home to help, but I want to be able to send a lot more. Of course, the portfolio needs to be bigger to send more donations, or I need to make a lot more money, which I’ve been learning. 😅

clambo says

GNL makes a good point.
About a day after my father died my older brother reminded me not to forget to name his son and daughter as beneficiaries of my accounts (I have no children).
I didn’t like his comment.
My girlfriend is the beneficiary of a few of my accounts.
I’m going to have several, maybe make multiple people 10% beneficiaries.
I’m curious who will prepare my tax return after I die; I prepared my father’s final tax return.
Presently I am annoyed by the sloth, greed, and envy I have noticed among some females.
They won’t be rewarded.

There are winners and losers among us. Not all trust fund babies are lazy and couch surfers. Some are smart and self-driven while others just want to coast through life. That’s what makes us a society. Money will transfer from the lazy to the productive. Time will be sure it happens.

Eman says

There are winners and losers among us. Not all trust fund babies are lazy and couch surfers. Some are smart and self-driven while others just want to coast through life. That’s what makes us a society. Money will transfer from the lazy to the productive. Time will be sure it happens.

Yes, good points. If you want great kids who contribute positively to society (I sure hope that's what we all want), money without work is nearly an abomination imo. Money doesn't create a good society or person. Reading, learning, loving etc...those are the tickets.

Eman you mentioned some stuff about loan advice from federal reserve friend. Can you share any of that advice please? Like loan terms, types? Im looking at commercial land and properties lately too, just not in CA.

FortwayeAsFuckJoeBiden says

Eman you mentioned some stuff about loan advice from federal reserve friend. Can you share any of that advice please? Like loan terms, types? Im looking at commercial land and properties lately too, just not in CA.

@FortwayeAsFuckJoeBiden,

This mainly relates to commercial loans. When you buy a non- or underperforming asset/building that doesn’t generate adequate income for a 75% LTV, you ask the bank for a bridge IO (interest only) to perm (permanent) loan.

Let’s say you need 1 year to stabilize the asset, you ask for 18-24 months IO with a 3-5 year ballon payment to give yourself some buffer. Once the asset is stabilized, you can convert it to a perm loan, which is typically a 5/1, 7/1 or 10/1 ARM loan with 30-year amortization.

Example: Buy a $1M building with only $5k/mo of income. After $3.5k of monthly expenses, net cash flow is $1.5k. 80% allowed for debt service is $1.2k. Max loan amount is $240k. You need to bring in $760k to close the deal.

You propose/request for a 75% LTV (Loan to value) IO bridge to perm loan with reserve, which will be released once the DSCR (debt service coverage ratio) has been achieved.

Debt service on the $750k IO loan is $30k/year at 4% interest. 18-month terms = $45k to be set aside in the bank’s reserve account not to be touched. At 24 month = $60k. Your total cash outlay is $295k to $310k vs. $760k

Once your net cash flow is greater than $3,125/mo, you ask your property manager to send the monthly statement to the bank, they will release the reserve immediately. $3,125 is 1.25 x $2,500/mo of debt service.

If you can achieve $4.5k/mo net cash flow within 24 months, you can ask the bank to convert it to a perm loan. If you can achieve $6,250/mo in cash flow within 24 months, you can ask the bank for a cash out refinance loan of $1M.

Note: the interest rate is fixed for a 5-, 7- or 10-year perm loan. Interest rate is float/adjustable on a bridge loan. It’s normally prime + 0.75%. Today’s prime rate is 5.5% so that’s 6.25% interest.

There are other terms that you can ask the lender to carve-out or modify like pre-payment penalties. You can also ask for an earn-out like for each milestone of cash flow that you achieve, the lender would give you $50k or $100k of equity so you can achieve higher cash flow, etc….

Basically, whenever I have a scenario, I would run it by him. He’ll share how he would structure it and pitch it to the lender. Hope this helps. I’ve learned so much this past decade thanks to generous people who are willing to share their knowledge….all for free.