Russ Blahetka

CFP®
Personal Finance, Investing, Lifestage Based Planning
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“Russ Blahetka, founder and Managing Director of Vestnomics Wealth Management, is committed to providing his clients with personal financial planning, investment management, and other wealth management services on a fee-only basis.”
Firm:

Vestnomics Wealth Management, LLC

Job Title:

Managing Director

Biography:

Russ Blahetka, CFP® is the founder and Managing Director of Vestnomics Wealth Management, an independent, fee-only, Registered Investment Advisory firm serving individuals, families, and self employed individuals. He founded Vestnomics on the simple concept that everyone has the right to achieve their financial goals. Prior to this, he was a Financial Advisor and District manager at Waddell & Reed.

At Vestnomics the focus is on the human side of finance. Together, Russ and his team cut through the jargon and media noise and focus on the personal, human aspect of their client's finances. Vestnomics is a personal, economic advisor. The fee structure for the firm is transparent and reasonable. They offer hourly or flat fee for financial planning and also offer assets under management based fees. Russ' clients receive regular communications on their portfolio's performance as well as timely updates of market conditions. All advisors at Vestnomics are bound by the CFP® Board's code of ethics. This means Russ and his team are bound by the "best interest" standard, not the less strict "suitability" standard.

In addition to helping clients towards their goals, Russ teaches "Investments in Personal Financial Planning" at the UC Santa Cruz Extension. Additionally, he teaches "Financial Statement Analysis" in the extension's CPA and Business Administration program. Outside of his professional endeavors, he can be found taking lessons in an Evektor Sports Star working towards his Sport Pilot License. Furthermore, he serves on the board for Title IX Media, an organization which promotes gender equality in sports, and the Academy of Finance at Independence High School.

Education:

DBA, International Business, Argosy University
MBA, Global Business, San Jose State University

Assets Under Management:

$14 million

Fee Structure:

Fee-Only

CRD Number:

4547259

Disclaimer:

Information contained in this posting is informational and educational in nature. Do NOT take information provided here as legal, tax, or investment advice pertinent to your specific situation. Any information posted here is not a solicitation of any type, nor does it constitute an opinion on the appropriateness of any investment either in general or specific to the reader's situation. Do NOT act on any information or answer without obtaining legal, tax, and/or investment advice  specific to your situation from an appropriately licensed professional.   

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    Debt, Investing, Real Estate, Taxes
Will a federal housing administration (FHA) loan or conventional loans give me the maximum return over 30 years on a real estate investment?
100% of people found this answer helpful

Hello,

 

I realize this may seem like a straight forward question, but it does have several moving parts. Typically, the lower the required cash outflows for a given rent the better your return. Based on the information provided, I am assuming you do not plan to invest in a REIT or other type of fund, but rather some type of rental property (residential or commercial). If this is the case, there are considerations beyond just the loan. However, for purposes of your question and assuming you are discussing residential property (commercial property has its own considerations), here are a few things to consider :

  • If you take out an FHA loan (read about potential restrictions here), and only put 3.5% down, you will need to add PMI (private mortgage insurance) to your calculations. This will afect your return. You can remove it after 11 years or if the value goes up (or you pay down the loan) enough for 80% LTV (loan to value) and you refinance.
  • The same will be true if you put less than 20% down on a property. You will have to carry PMI until you can qualify to remove it (80% LTV).
  • Will the choice of loan make the property cash flow negative or cash flow positive? If you are not cash flow positive from the start, you are essentially taking a loss until the situation corrects itself. That loss will affect the total return.
  • Regardless of the loan, in what shape is the property/building (one of those pesky "other considerations)?

There are a number of rental property calculators on the net, for example, this one. There are also a number of mortgage calculators. The shortfall of these on line calculators is they sometimes do not take into account things such as PMI amounts, vacancy rates, etc. You may want to make an appointment with en experienced advisor or other professional to help you with the details.

Good luck

6 days ago
    International / Global, Taxes
What are the pros and cons of the Goods and Service Tax (GST) in India?
56% of people found this answer helpful
November 2016
    Choosing an Advisor
Is a financial advisor required to have a degree?
50% of people found this answer helpful
November 2016
    Debt, Real Estate
Is it possible to obtain a mortgage after a short sale?
50% of people found this answer helpful
December 2016
    Mutual Funds, Stocks
Why are mutual funds more recommended than individual stocks?
50% of people found this answer helpful
December 2016