All Forum Posts by: Jeremy Garcia

I do not believe that it is a bad idea to invest in a market that you are not in for your first investment property. I have not personally done it but I have become more open to this idea due to the turnkey properties that exist. These companies essentially allow you to buy a property in a "hands free" manner that will cash flow.  Memphis Invest, MidSouthHomebuyers and Norada are all good candidates based off my research. I have not pulled the trigger on a turnkey property yet but will be doing so sometime this year.

I too have been contemplating using my homes equity for purchasing investment properties. As long as the asset you are purchasing overcomes the costs associated with refinancing your home the investment in a rental property is a great idea.  The equity in your home is not doing anything by just sitting there. I would not recommend taking out all the equity...just so that you have some market down turn protection. 

I am not in the military but here are my two cents as a government employee. Now that I know that Real Estate Investing will allow me to retire early instead of waiting till I am 57 to touch my hypothetical $2.4 million investing in the TSP. ..I started using my TSP as my "savings account." I allow my TSP money to gain interest at a higher "savings interest rate" than the bank and will borrow from my TSP for either fixing a new rental property or for the down payment. I will then pay it back ASAP so that I can buy another property. I tried this strategy for the first time this past year and it is great!

The only drawback is having to take significant reductions on your paycheck due to me trying to pay back the loan quickly. I may just start paying my loan over 5 years (maximum allowed by TSP) so as to not have such a big deduction on my paycheck. The above strategy is really beneficial at a time like this. ..when the TSP funds are not doing well. By borrowing from my TSP in the current stock market condition I am getting a better cash-on-cash return on it due to the leverage I have in buying my rental properties. ..and I am paying myself 2% interest instead of a loan company.

I think the TSP is a great investment for people that just want to "set it and forget it" due to them not having the discipline to save on their own. I also agree with others regarding the notion of having diversification in the form of the TSP, outside Roth IRA's and real estate. I consider my real estate as being liquid compared to the TSP because I acquire cash flowing rental properties. This cash flow will be my bridge btwn when I retire early and when I can touch my TSP at 57.

 PM me and I will give you the information :) 

I finally ended up setting up my LLC's through a great lawyer that was recommended to me by a fellow BP'er. I was happy to get lots of legal questions answered and have a professional structure the best organization for my businesses. Two weeks and I will officially have my rental LLC's and business LLC's :) I'm very excited!

 I just need to get out of my comfortable "self-finance zone" and look harder for owner financed properties because it will be great to use someone else's money for a change.  I have been looking in the local paper and craigslist. I just haven't found a deal that suits me.  Do you know a good portfolio lender here in ABQ? 

Great to meet you Stephanie! Glad to know we share the same goals. I want to buy a multifamily property before I buy an apartment but I have been contemplating just sticking with SFH's after speaking to local investors who don't feel that apartments in ABQ are as good cash flowing investments as ABQ SFH's are. Ultimately, I just need to make a decision and do my own homework to verify this.

I highly recommend joining a local Real Estate Investing group in your area. ..Las Cruces right?  I joined a great group here in ABQ and I find the group to be very motivational and a great source of knowledge. 

What is your step by step plan to attain your goals?  Are you going to use your personal savings as down payments on your properties or other people's money?  Currently,  I use my own money but I'm looking to use private money. ..I just need to search harder for it because I know it exists for rates as low as 7%. I need to find my own sources of private money because my fellow ABQ investors have found some and I assume it is a bad thing to ask other investors about their private money sources.  

I will keep you posted on my acquisitions and accomplishments. My most recent action had been placing my rentals into LLC's. I decided to go through a lawyer because I wanted her to give me the best, structural organization for my assets and business. I also wanted her support in answering legal questions I had regarding my business. I also think it is great to have a good family lawyer anyway :)

@Leland Titus, great to meet you on BP! I'm glad to hear we share the same goals. How have you purchased the rentals you correctly own?  I plan on using private money on my next rental. ..I just have to find the trustworthy partner :) I want to buy a four plex and then an apartment next.  

 Im sorry Nino...I thought the calculators were available to everyone!  Before I got a pro membership. ..I could have sworn that I could use the calculators but on a limited basis...is that not the case for you? 

@Peter Fennig

Thanks for the inspirational post. I am happy to hear about your seller financed deal because it is something I would like to do along with someday using private money lending.  Did you use a contract that was reviewed by a lawyer or did you just draft a boiler plate contract with him?

@Paul B. 

I also noticed that a lot of REI's are engineers. and it struck me as odd at first but that quickly changed once I started researching REI.

As a Civil Engineer, I worked 8 years in construction and learned to manage contractors to complete construction projects.  This familiarity with contractors, contracts, project management, and cost estimation meshes perfectly with Real Estate Investing! That is why I have come to love it.  

Secondly, as previously stated, engineers get paid very well so they can afford to dabble in the stock market, real estate,  expensive hobbies or whatever else.  I actually find it more impressive to see non-engineers that are way more successful than I because they had to be more creative in their financing methods.  I believe that everyone has an "engineering mentality" in them...thus the reason why humans are so innovative in the way they overcome obstacles.  

The biggest reason why I started in REI was because after an exhaustive analysis of which investment vehicle would allow me to become financial free the fastest, REI beats everything.

I like my job as Civil Engineer but I do not love it. Quite frankly, I don't like to work and the sooner I can stop the 9-5 rat race. ..the better. I cannot wait to have the problem of "being bored" when I am financially free at a young age. I will find something to do when I get bored. ..because that is what you do when you get bored :) I think that I will be REI'ing for the rest of my life but it will not feel like work because I love it. I am all about "work smarter, not harder" and so if I can condense a 30 yr. 9-5 job to a 30 yr "choose your own schedule" job. ..that is great. ..or just become financial free in 15 years and enjoy traveling at a young age with my wife instead of when I'm old.