All Forum Posts by: Andrew Major

Apparently New York Governer Cuomo added a new law that adds lawful income as a protected class. What does this mean for New York? In New York it seems that anyone can just apply and you have to accept them. Is REI done in NY? What do you think?

*Yes I spelled landlord wrong, and I cannot change it sorry for not proofreading 

@Richard Santi Thank you for your advice I will listen to that podcast as well I gotta finish up the ones I have so I can download that one.  I appreciate a fellow vet in this business.  

@Kenny Dahill Thanks for the info, I will take a look at it when I am closing

As per my last couple posts, I describe my goals and plan of action here.  I am tracking my journey on here as I go to keep myself accountable (feel free to call me out). In summary, I wanted to analyze markets while on deployment so I know what a deal is when I see it (Fort Drum and Watertown, New York and Bethlehem and Lehigh Valley, Pennsylvania).  I also wanted to start assembling my teams and key players in these areas.

Update:

-Internet here is scarce, I am extremely busy. I have found time to analyze 12 deals in the past days which isn't bad.  I leave my phone in the only place in our area to download podcasts.  Past 20 days when I am at my desk/working out I have listened to around 30 ish BPpodcasts.  At night I unfortunately go out on missions and cannot be listening.  During lunch I read Brandon Turner's "The Book on Rental Property Investing" (Yes I plugged it).  I am also solidifying a business plan and my goals sheet.  I have been working 10-16 hours a day so I try to squeeze whatever in I can, along with working out.

-For assembling my team, I have had luck with 2 real estate agents and 1 property manager in Bethlehem and 1 property manager and real estate agent in Watertown, NY.  I do have to call on their references but it is hard because I do not have cell service and I feel some people think that using WhatsApp is sketchy. 

Questions: 

- What do ya'll think of my plan and how I am acting upon it? What can I do better?

- Is there an easier way to get people to basically apply or reach out to me?  I have just gone off the internet and pulled the agents and PMs off the internet, some don't get back to me and a lot want to call me.  The internet calling for one is patchy and has driven 1 away.

- For buying my first multifamily buy and hold, how would I go about buying it so that the house is ready for me and my roommate to move in back from deployment and have people live in? I know the due diligence phase is extremely important, and walking through the property is normal.  Long distance real estate investing seems kind of foreign to me.

Thanks for your help and time!

@Thomas Zaremba @David Ribardo Thanks for the advice, my spouse is totally on board with REI and living next to tenants if it means we can financially be free and eventually travel whenever!

Your insight into the market is very helpful! I have done analysis of three properties so far (when I can get wifi).  There are not many Bethlehem/Allentown multifamily's like ya'll said!  Fort Drum has some interesting properties, not many tri or quadplexes unfortunately.  Hopefully in 6 months I will feel comfortable about what a good deal is when I see it.  

I reached out to 4 agents and 4 PMs in Bethlehem unfortunately no response yet.  I have an agent in Drum that has me on his online portal.  Not sure the best way to find a contractor (long distance wise)? Assembling a team seems to be challenging.  

I like the triple exit strategy idea. A BRRRR although having more moving pieces seems the best way to get a better spread for myself if worse becomes worst. ROI is better and will have more cushion. I am also using my TA to take some accounting classes, to further my financial education!

Thanks for all your help.  I will keep posting and most likely will post analysis/progress reports when I am more settled!

@Thomas Zaremba thanks for your wonderful insight! Very thought provoking and I feel will keep my REI more efficient if don't from the save mode. I will definitely be emailing you soon! I am currently on the plane and once I'm settled i will be hustling!

From my post before, I described how I will be in and out, then finally deploying for 9 months.  I am currently in Fort Drum, NY.  You all had some good feedback, and this is what I finally came up with. This plan will keep me accountable and to not fall into a analysis paralysis. Tell me what you think!  Thanks

Game Plan:

While on deployment/if possible (between my partner in Delaware and I), we will both be doing market research.  We will be focusing on Bethlehem, PA as we are interested in this market.  I will also be researching Watertown, NY and surrounding areas.  During our analysis phase we will assemble a team of property managers, lawyers, and handymen. At the end of my deployment I will have about $50,000.  

At 6-8 months, my partner and I will be buying one multifamily in Bethlehem, utilizing a property manager for the long distance. This most likely will be a buy and hold, possibly BRRRR. We will have a strict lease, and develop it with a lawyer, property manager, and here on BP. I will also be buying a multifamily in Fort Drum, NY as I will have 2 years left. It will be a buy and hold that I self manage, and depending on my situation later on I will sell or get a property manager. By the end of my contract I expect to have a capital of $115,000 to utilize plus my VA loan. I plan to get 2-3 more multifamily houses in Bethlehem during my contract.

Same as all the rest said, if you want to read about that you can look up Servicemember Civil Relief Act.  

Next time you might want to add an addendum to your about how you want the military tenant to deal with notifying with you.  If you want I can send you can example in my lease

Hi Matt,

I am a noobie investor, but I am in the military and know a lot about it.  

1. Look up the BAH (Basic Allowance for Housing) for your zip code around the area.  You can look it up easy and there will be tools.  This is how you can have a baseline for rent and what your tenant should be getting to base your rent and looking at the market.

2.  Military members stay for 3-4 yrs for every assignment then move on.  Fort Bragg is a high op tempo base and will have people always moving in and out. So you have a constant demand.  The only risk is if the base reduces size or shuts down.  Which Fort Bragg will never shut down, maybe reduce in size depending on the politicians.

3.  If they are on orders to deploy or go onto their next assignment by law they can break their lease without penalty.  Make sure they bring you a copy of the orders, and make sure you have the right systems and processes in your lease for how a typical military move out should be.  

4.  Lower ranked military members are young and tend to be more immature.  On your lease get the contact info of their company command team.  If you ever have a problem you can call their first sergeant or their platoon sergeant (supervisor).

5. Like many military bases the surrounding town is normally small rinky dink with civilians trying to take advantage of military members (loan sharks, auto dealers, gang members, and drug dealers)  Your properties will probably be relatively stagnant due to it only being a military base. 

LMK if you have any questions

@Omar Khan @Ian Kee I appreciate your insight, I think I'm leaning more towards going to where I will end up. And I already have a partner there too. I just have to analyze the markets. Thanks once again

@Jeremy Roberts thanks Jeremy! That's a good point. Unfortunately I am new to the area and anyone I do know or trust will be deploying with me. Still debating my plan of action but thanks for the advice. Did you start REI while in the military or after?