Looking to see how I should plan!

[Dylan Tettemer]

Hey everyone, I am currently 21, married and looking to get out of the military in 2019. I have never bought a home before but would really like to start investing in real estate when me and my wife move. We were looking to move to Charleston, South Carolina. And I am also a general contractor so I definitely plan on flipping homes. How should I get started with investing? Is this a good market to get into? I am looking to use the VA home loan but wasn't sure if I'll be able to get qualified. Appreciate any help from you guys!

[John Underwood]

@Dylan Tettemer

I am retired Navy and was stationed in Charleston for 9 years. I loved Charleston.

It is great that you are looking into Real Estate Investing at your young age.

First, if you've never read the book Rich Dad Poor Dad. It is my favorite real estate book and I highly encourage both you and your wife read this book.

Second, when you do look for your first property look for a Quad Plex. It is not commercial property so you can buy one with a VA or FHA home loan. You can rent out 3 units and you can live in the 4th for free and should be able to even pocket some money. Rinse and repeat if you can.

Next, Look into Tax Liens. SC is one of the very best (top 5) states in the country to buy tax liens. Look on Bigger pockets for more information on this subject. Get investors, friends and family members to partner with you so that you have extra cash to use to buy as many tax liens as you can. If I knew at your age what I know now I would have many more tax deed properties than I do now and I have a decent amount of them.

Lastly, once you get to Charleston look for Bread and butter houses that need work that you as a contractor can fix up and flip for a decent profit.

Oh yeah join your local Real Estate Club in Charleston once you get there. I'm sure they have one.

Thought of another thing. Look into getting a VRBO in Charleston once you can swing it. Maybe you can find someone willing to owner financing one or maybe you could get them to take back a second mortgage so you don't have to come up with a down payment. Charleston Downtown or close enough to the beach to hear the ocean is a poplar vacation destination. I have a VRBO on the lake and it pays for its self and makes money. Watch the TV show "Vacation House for Free" to see what I'm talking about.

Delay instant gratification like buying a new shiny car and having all your money go towards a house payment. These things are liabilities, you want to buy assets. (see Rich Dad Poor Dad book). Some sacrifice and self control on spending will pay off big time down the line.

Ok just thought of something else. Get a self directed ROTH IRA or SOLO 401K and buy investment property in it. You pay taxes on the money going into the ROTH but not when you withdraw it. So you pay tax on the seeds and not the crop. Don't have much money to put in a self directed IRA? No problem, get it started and then let your IRA wholesale properties and the wholesale fee that your IRA makes goes back into your self direct IRA. Look on Bigger Pockets for more info on this subject.

OK I think I am done now.

Like I said if I had know these things at your age I would be a multi millionaire by now.

There is your road map as I see it. If you have questions feel free to ask me or the Bigger Pocket community.

Good Luck!