All Forum Posts by: Brandon Proctor

Well really it is a property that the owner owns free and clear and has no mortgage. So now they can hold the note themselves. For the seller it gives them a stream of cash flow and they do not have to worry about fixing toilets and such which I would believe is a big plus. sellers also can more than likely get more for the house than if they were looking to get the entire purchase price upfront. 

On the buyer side the deal can be as sweet as your negotiating skills allows it to be and if they are motivated then it could get pretty sweet. You might be able to get it with zero down and only come out of pocket with closing cost. You also can most likely get a lower interest rate. I have read of people getting as little as 1%. I myself am planning on trying to get it for 1.5%. 

This is how I see it from everything I have read and learned. Hopefully someone else who has actually done deals like this will chime in and clear up anything I may have wrong or not be seeing.

I do not know if you have started listening to the podcast yet but if not I would highly suggest doing so. It is so much information there that anyone no matter how long they been investing can benefit from.

@Brandon Proctor talk to bankerS.   how i found mine was a mortgage broker.   he wasn't able to do my loan.  he referred me to another banker.   and oh by the way there is a il veteran program.  broker was not going to tell me about cause he couldn't offer it. 

other 2 i sold i made a little money but after paying 6-7% realtor commissions closing costs taxes etc etc etc.   never as much as i had hoped for.  one is in a really hot market would have been getting appreciation and good rent. 

here is the brain teaser.   you buy a house on va loan. you live in it. then you are restationed to (insert base here).   bankers will not count rental income on first house til after filing on your taxes fora while.   how do you buy another house and keep your first one? 

Good luck @Brandon Proctor . By no means am I an experienced investor, but I did just use my first VA loan last year. I think others have made some great comments, such as needing to meet requirements. It was hard for me to find a solid multifamily that had a unit open for me to move into, so I found a nice SFR for my wife and I. Not to state the obvious but the realtor made all the difference. If it's a not a good fit I would find someone who can better represent your needs. Also I love USAA, but they did take slightly longer to close than other lenders, just FYI.

We tend to appeal to the lower officers who are married and therefore want a house. Or the higher level enlisted who like our school districts and agaim like the house. We also buy in what are considered "****** little towns" where people don't want to have permanent roots. So this helps a lot with making their more "demand" than supply. we find staying in the "lower" ranks keeps it affordable for all. Know your base because most navy base require yu to be married or above and e5 or e6 to live off!

Well I'm still fairly new but I can tell you the route I am looking to go. I am planning on using my VA loan to buy a house 0 down as well. However I am looking to buy a multifamily because with your VA loan (unless it has changed) you can buy up to a 4-unit house as long as it is owner occupied. So rent out 3 live in one is my plan to reduce my living expenses greatly and use the savings to help pay down the principle on the loan and invest back into growing and automating my wholesaling business to use that money to build my portfolio faster.

This is just the route I am looking to go and may not workout for you but it is an idea worth looking into. Also while wholesaling I am looking to grab any owner financed properties I can to add to my portfolio with little to no money out of pocket! I am actually looking to call back a lead tomorrow to try to work out a deal now for owner financing on a property that is already cashflowing. Good luck to you on your journey and I hope this helped.

If anyone see any flaws in my plan please let me know as I am definitely open to criticism. 

@Elizabeth Colegrove I love your strategy! it is the exact reason I wanted to get started investing here in Hampton Roads. The military always make for a good tenant as they get paid every month for sure and if one leaves there is guaranteed to be another to take their place. Real smart to price slightly below BAH as well because I know I always looked to have a little left over when I was looking at housing while I was active duty.