Newbie Introduction

Newbie Introduction

Anchorage, AK · Member since 2014 · 7 posts · 1 vote

Hey guys, I've been a subscriber for a while now. I'm making this post to introduce myself and hopefully make some connections.

I have a family of four, my wife and I are self-employed. We currently owner occupy a triplex in Anchorage AK. I was military when I bought the property because it just made sense and I'm so glad that I did. Being that we are both self-employed and with our income status, I know that banks would brush us off. We've grown to appreciate our lifestyle, as it feels extremely liberating. However, that's not to say that we aren't were we should be goal wise and I'm having a hard time seeing through the fog to attain my next goal, which is to own more real estate. If we were to own at least one more property as gracious as the one we currently occupy, we would be blessed even more so! My triplex doesn't cashflow as we are currently living in it, but it ALMOST DOES. I feel that my rates for the tenants are acceptable, and they have been in the building longer than I've owned it.

A few problems that I'm up against ... I've come to the understanding that while living in my property it shows as a liability rather an investment. My family really doesn't want to move out of our unit... We want to stay here until we can build or buy our HOME which I'd like to do before my kids outgrow playing in a backyard.

I've thought about the idea of putting the triplex into an S-Corp or something like that and "rent to myself." I don't know if that's entire possible.

Honestly, if there was a way to avoid banks and deal with people who were interested in investing their money I'd much rather that. I just don't know where to start . . .

We are practically debt free, minus the mortgage and the windows that we put into it. My real estate has given me a lot of freedom, the freedom to pursue my dreams of leaving the military to become a self-employed photographer (www.ryanblax.com), but I feel that I'm so close to being able to live without any worry of monthly income. My goal is financial freedom/independence (who's goal isn't...).

I'm taking a seminar in the coming weeks to hopefully enlighten myself on opportunities other than banks, but figured I'd stop by here because I know this group is full of valuable people with valuable information.

If you read this entire post, God Bless you! 

Have a wonderful day,

Ryan

1Reply
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Most Popular Reply

Rental Property Investor · Ottawa, Ontario · Member since 2015 · 42 posts · 9 votes
11y

hi Ryan, I see a lot of people have posted welcomes but didn't provide any hard fast todos for you! I'll see if I can start you off.

There are ways to raise money without going to banks or using hard money loans, check out Alan Cowgill, he's a wealth of knowledge on the subject, obviously there are securities laws to follow so be careful, in short you can't just walk up to somebody off the street and ask for them to take part in your deal, not right away anyway. YOu can register with the SEC and then your allowed to solicit accredited investors only, so I think it's a multiple pronged approach to achieve what you want.

As far as your house being a liability well while your living in it, it is, but when you second you sell it if your making money on it, it will be an asset! and according to some smart CPAs moving every couple of years is a great way to grow your wealth and save the capital gains tax, which brings me to my next point, this is all about strategy, so you need to figure out what you want to do and build the legal structure(s) you need then start placing assets in them well if that's your strategy! ours is to invest in value add real estate and do that tax free using private money! hope that helps.

See this reply in the discussion

14 Replies

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  • BiggerPockets Support · Manila, Philippines · Member since 2015 · 1k+ posts · 149 votes
    11y

    @Ryan Black

    Welcome to the BiggerPockets community!

    Glad to have you with us.

    BiggerPockets
  • Investor · Bangkok, Thailand · Member since 2014 · 52 posts · 22 votes
    11y

    Welcome, Ryan.  I hope to make the transition to post-military life in about 5 years.  I look forward to following your journey on here.

    Steve 

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y

    Thanks guys :)

  • Roseville, CA · Member since 2015 · 124 posts · 9 votes
    11y

    Hi @Ryan Black and welcome to the forum.

    The seminar (any form of REI education) is a great idea, but as I did, I'm sure you will find that everything you need is right here on BP!

    Jump in, learn and engage.

    Best of luck to you and your family!

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y

    Thanks Doyle, 

    I certainly agree that there is a lot of valuable information here. The seminar that I'll be attending is offer by Ron Legrand. I've heard a lot of good things. I shall find out haha!

  • Real Estate Broker · Anchorage, AK · Member since 2015 · 170 posts · 46 votes
    11y

    Hey @Ryan Black and welcome! Awesome move and super smart. 

    Depending which type of loan you have, you can move it into some sort of corporation and rent it to yourself. 

    I understand the thought of it being a liability, but you're doing the right thing and I would keep on doing it. I might recommend buying another multi family property (if you can) and I'm sure you would live for free if not cash flow a bit with both multi's. Keep pursuing your goals man!!

  • Scott SewellPro Member
    Investor · Anchorage AK and Hampton, VA · Member since 2012 · 140 posts · 82 votes
    11y

    Hi Ryan,

    And to tag along with everyone else, WELCOME to the greatest Real Estate learning resource in the world (in my humble opinion)!!!

    As to your seminar, please leave your credit cards at home (you'll find out why), be careful of the big up-sell (ie: don't do it) and enjoy the camaraderie!

    Really, this place is a fare better way to invest your time and money. Have you checked out the local REI group yet? It's called REX (for Real Estate Exchange), and your questions and timing couldn't be better. The next meeting is Monday the 12th (6:30pm) at the BP (British Petroleum) energy center. Subject: "The ins and outs of hard money lending" . As in buying property with other peoples money (at least initially).

    Again, Welcome! And, see you around the site, if not in person.

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y
    Originally posted by @James Cash:

    Hey @Ryan Black and welcome! Awesome move and super smart. 

    Depending which type of loan you have, you can move it into some sort of corporation and rent it to yourself. 

    Thanks James! Yeah it's a VA loan ... I have no clue if I can roll it into a Corp. I really should be renting my place at full capacity and rent from someone else, but my wife isn't fond of moving. So I'm trying to find an alternative. We must get another property!

    Thanks again for the warm welcome!  

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y
    Originally posted by @Scott Sewell:

    Hi Ryan,

    As to your seminar, please leave your credit cards at home (you'll find out why), be careful of the big up-sell (ie: don't do it) and enjoy the camaraderie

    Yeah I'm not spending any more of my money on them. I know the seminar that we are attending has a lot of good information and that is how I'm looking at it, paid education + an excuse to hangout with my wife for a few days.

    I've been to one REX meeting about 2 years ago. I think it's about time I will show for another. I'm up to attending the meet next Monday. I'll try and bring my wife.

    Thanks against Scott for the response. Pretty awesome to see a couple guys from Alaska being active here. 

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y

    Wish I could go back and edit my posts hah! Using an iPhone can be a challenge sometimes.

  • Rental Property Investor · Ottawa, Ontario · Member since 2015 · 42 posts · 9 votes
    11y

    hi Ryan, I see a lot of people have posted welcomes but didn't provide any hard fast todos for you! I'll see if I can start you off.

    There are ways to raise money without going to banks or using hard money loans, check out Alan Cowgill, he's a wealth of knowledge on the subject, obviously there are securities laws to follow so be careful, in short you can't just walk up to somebody off the street and ask for them to take part in your deal, not right away anyway. YOu can register with the SEC and then your allowed to solicit accredited investors only, so I think it's a multiple pronged approach to achieve what you want.

    As far as your house being a liability well while your living in it, it is, but when you second you sell it if your making money on it, it will be an asset! and according to some smart CPAs moving every couple of years is a great way to grow your wealth and save the capital gains tax, which brings me to my next point, this is all about strategy, so you need to figure out what you want to do and build the legal structure(s) you need then start placing assets in them well if that's your strategy! ours is to invest in value add real estate and do that tax free using private money! hope that helps.

  • Anchorage, AK · Member since 2014 · 7 posts · 1 vote
    11y

    I'll take a look into Alan's stuff. I appreciate your time providing with this awesome info.

  • Specialist · Mortgage Broker Canada · Member since 2015 · 316 posts · 118 votes
    11y

    Hi Ryan, welcome to BP and thanks for sharing. 

    A couple of questions: Have you consulted a mortgage broker? Have you considered taking equity out of your current home to invest in a second property? In Canada, the interest on this loan would be tax-deductible and a Canadian bank will consider the rental income (of second property) in the mortgage application. Might be worth your while to consult a mortgage broker in AK and your accountant. 

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    @Ryan Black

    Welcome to the BP family you came to the right place to learn all about real estate investing! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    Wishing you the best!                                                      

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