All Forum Posts by: Joshua McMillion

@Fahadbin Alam

The VA loan is a powerful tool. You can use it to invest in residential property from an SFH up to a four-plex. Depending on the market your in, each of these property types is possible to house hack. Putting my commander hat on, make sure you vet your tenants and do not just allow your friends to stay. This could cause significant ramifications for your future investments. It is possible to manage the property yourself, but I would recommend finding a qualified property manager if possible. 

Sincerely, 

Josh

@Kevin Herron

First of all, welcome home! I have done several deployments but didn't capitalize on REI with the funds saved. You do not need to get pre-approved to determine the amount of VA eligibility you would qualify for. If you're going to use a VA loan, it allows you to purchase up to multi-family residential (4-plex) and is the best used if you can house hack. I'm assuming you will be unable to accommodate hack this property given your job. 

Go with a local lender. Larger lenders typically have higher discount points and other fees. This is not always the case, but focus your energy on connecting with local lenders. The first question I would ask is, what are the current rates for a VA loan? Do you have fees with that rate? If I transfer the mortgage into an LLC would it trigger the due on sales clause? This will give you a general feel for that company. Call multiple companies and compare rates.

Hope this helps! 

Josh

@Claudio Salvatorelli

Interest insight into the historical patterns. The significant difference from 1930 to 2020 is the rise in disruptive technologies that have created working home more viable for families. Not all can take advantage, unfortunately, and there will be ramifications on the amount of stimulus the FED is pumping into the economy. That's why it is more important than ever to establish CCC and purchase smart.

Specific, measurable, attainable, relevant, and time-based.

Sincerely

Josh

@Chris Levarek

Thank you for the information. I am a data nerd and like using Costar. 

Sincerely, 

Josh 

@Justin Woodford

First, I would suggest you find a legal advisor and ask to discuss your goals for where you see your business heading. They will help guide you to the right structure you need. Then, save some money and form it yourself or find a professional that can create it for you. For example, my CPA can form an LLC for $400 plus the state filing fee. The extra money is worth it. 

Yes, there are benefits and tax breaks of owning an LLC. But if you purchase your properties under your business, the rates will be significantly higher; on the flip side; it will be easier to find private or hard money. Also, if you plan on rapidly scaling, you will need multiple LLC's. For example, say you own one LLC with six properties and a resident falls on one of your properties. Every asset in that LLC is open to seizure. My rule, know I have not done this yet, will be five properties or a specific amount. If you're starting, it may be more beneficial to create an umbrella coverage. 

Sincerely, 

Josh

@Jason Krivickas

Congratulations on retirement! I have nine years left and am starting my REI journey. My opinion, don't limit yourself to a local CPA, follow your gut. I went with a CPA that was a veteran, invested in real estate, and specialized in real estate that was recommend to me in my military mastermind group.

Just completed my taxes and paid significantly less than expected. 

Sincerely 

Josh 

@Laura Rolerat

No problem, glad I could help. 

Sincerely, 

Josh 

@Elijah Brown

Inspiring story. You were much smarter than me at a young age. The cadet starter loan was one of the worse financial mistakes I made. I paid it off, but I wish I could go back and buy a passive income-producing asset. 

Sincerely, 

Josh

@Kristian Clemens

If you're looking in the Milwaukee area, the veteran turn-key company is called Storehouse 3:10, and I highly recommend them. See link below. 

https://storehouse310turnkey.c...

Sincerely, 

Joshua  

@Aaron Maitland

@Jeff Wagner

I am by no means an SME on the topic, but it could be possible to receive an HSTE for a property considered a residential property. No, does that include duplex, triplex, or quadplex? This topic is something to as your tax professional or the Madison tax assessor office. It May not work, but it does not hurt to ask. It definitely will not work for anything not considered residential. Below is a link to the Alabama homestead exception.