Starting out in real estate.

[Christopher Heil]

Hello everyone,

New Member to BP here. I am 29 years of age, currently a SGT in the US Army. currently deployed but have gone mad with investment fever. I am very interested making passive income, mainly looking at duplexes and quads. I do live in a military town so there are quite a few rentals out here. however no shortage of occupancy. I haven't made a core group or anything yet, however my older brother is also interested in joining me on this endeavor. I joined to pick everyone brains and get ideas/recommendations. I have bought only 1 house currently my residence, with a VA loan so it was pretty easy.

I guess my first questions would be:

1. How did everyone get started?

2.  What is the best way to not tie up all my funds in the first building? 

3. Should I make a LLC with my brother?

I have been watching quite a few of the podcasts, and know I am ready to get started!

Hope to make some new friends and get some ideas! happy investing everyone!

[Account Closed]

1. How did everyone get started.

I got started back in 2014 when the market was cheap in Florida, purchased a 3 unit in Fort Myers with my brother.  Has been successful and have learned a lot since then 

2. What is the best way to not tie up all my funds in the first building

Depending on where you live, you and your brother are best off purchasing the first property you have in a decent area, easy to rent.  Reach out to a real estate agent, that is your first step, only after you decide on what you want

3. Should I make a LLC with my brother?

No this is not necessary at the moment, you will be purchasing good insurance on the property that should protect against lawsuits, damage, etc..

[Charlie MacPherson]

@Christopher Heil Without knowing anything about you, the first thing I'd say is to proceed with caution.

When I hear things like "gone mad with investment fever", it sounds like a lot like what I call the "hardly waits".  As in "I can hardly wait to ...".

In my experience, clients who say things like that are about to slap on their rose colored glasses and make bad decisions.

Step back, analyze the situation and proceed briskly - but with a solid game plan in place.

[Christopher Heil]

@Charlie MacPherson  Agreed that was probably a poor choice of words, Simply trying to show that I was not one of those people that never take the first step. 

I'm currently deployed so I am using all this time to research and get ideas / pick brains. so to be truthful, I'm not making any purchase until I get back stateside. I'm married with 3 kids so throwing money away is not what I am after.

[Charlie MacPherson]

@Christopher Heil  That's more like it.  Deliberate consideration, gather data, apply your best efforts and then go and make a LOT of money!

And thank you for your service, Sergent!

[Lane Kawaoka]

If I were u find a way to use the VA loan.

[Christopher Heil]

@Lane Kawaoka The problem with the VA loan is that I can only have 2 out at a time ( for the better one at least ) I currently have one out on my current home. another factor is I cannot use the VA loan on a income property unless I live in it for over a year. also pretty sure I cannot refinance a VA loan. At least through Navy Federal Credit Union ( my bank ).

[Lane Kawaoka]

Any bank should be able to do a VA loan. I would connect with other investors locally.