All Forum Posts by: Landen Reed

Quote from @Landen Reed:

Quote from @Matthew McKee:

Quote from @Lexey Vezzoso:

Hey Landen!

I think if you could get into a duplex of some sort where you could live in one side and rent out the other that may be a good start for you. Some sort of house hacking in general. 

I work with an agent who is Military and knows a ton about the VA loan and what it can offer you. I would reach out to @Matthew McKee and I'm sure he could help point you in the right direction. 

Good Luck!

-Lexey 

 Thanks Lex!

@Landen Reed The VA loan is without a doubt, the most powerful financial tool top leverage money on the face of this planet. With that and your savings you'll be able to leverage an virtually overnight portfolio. Great work getting to this point!

 Hi Matthew

Yes sir, that is the goal! If you don't mind me asking, why exactly do you say the VA loan is a top financial tool?

As Lexey Vezzoso mentioned, some sort of house hacking would be a beneficial way to get started in REI. And I like that advice a lot. Is the VA loan a great tool because I can always refinance the property I bought with the VA loan and reuse?

Thanks for your time!

It’s the most powerful tool because you can buy a property that’s up to 4 units, refinance and do it all over again with 0% down. Aside from closing costs this can bring you free money.

let me lay down what I did. Bought a brand new SFR in an appreciating market for $450k. ~$5500 came out of my pocket for closing costs. I’m house hacking and cash flowing $250/month a house that I live for free in. I have a 50% ROI just from my cashflow at this point, now factor amortization, tax benefits from owning a home and appreciation. 

Learn how to do all the strategies, that way when a deal is presented to you, you know how to handle it 

@Landen Reed

You need to turn your interest into commitment by absorbing all the information in the materials @Nathan Gesner linked to, create a plan, and execute the plan.

I believe the best way for pretty much anyone to get started to house hack to generate some momentum. Use that VA loan and get started!

Quote from @Landen Reed:

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

Hi @Landen Reed!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As you mentioned already, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Especially with your VA benefits! Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management. You should be able to do this a few times to launch your investing journey.

Here's a great resource right here on BP:

https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy

Best of luck getting started! Here for you with any questions you have along the way!

@Landen Reed welcome to BiggerPockets! This is a fantastic community to learn, contribute, network and pick other people's brains. Happy to help with any construction related matters. 

Quote from @Lexey Vezzoso:

Hey Landen!

I think if you could get into a duplex of some sort where you could live in one side and rent out the other that may be a good start for you. Some sort of house hacking in general. 

I work with an agent who is Military and knows a ton about the VA loan and what it can offer you. I would reach out to @Matthew McKee and I'm sure he could help point you in the right direction. 

Good Luck!

-Lexey 

 Thanks Lex!

@Landen Reed The VA loan is without a doubt, the most powerful financial tool top leverage money on the face of this planet. With that and your savings you'll be able to leverage an virtually overnight portfolio. Great work getting to this point!

Hey Landen!

I think if you could get into a duplex of some sort where you could live in one side and rent out the other that may be a good start for you. Some sort of house hacking in general. 

I work with an agent who is Military and knows a ton about the VA loan and what it can offer you. I would reach out to @Matthew McKee and I'm sure he could help point you in the right direction. 

Good Luck!

-Lexey 

Quote from @Landen Reed:

Quote from @Forrest Williams:

Sounds like you're already on the right track. VA loan is the way to go. I would try to get a single family home that needs fixing up, fix it while you're living there, and rent it when you move. I had a friend in the army do this and he was quite successful at it. Try to avoid condos or HOAs, they often cost more money than they provide in value. With the amount you've saved up and a VA loan you're way ahead of the curve.

Hi Forest,

Great idea! Thanks! Are you saying avoid condos with HOA or properties that have HOA fees?

Yes. In my experience, HOA fees have only cut into my bottom line and not provided much value. Condos almost always have fees associated with them as well. Since you may not always be nearby they may help you, since you won't be able to plow snow or cut grass. But if you get a SFH, you can pass that responsibility onto the renter most likely anyway.

Hey Landen,

If you've got access to a VA loan and you're looking to maximize your portfolio returns you're going to want to look at owner-occupying a 4-plex.

That will allow you the maximum leverage to keep your cash on hand for renovations or for the next project potentially.

You're going to want a value add property where you can renovate one unit at a time as tenants turn over. Rinse and repeat until you've done all the units and the refi to get access to your VA loan again.

Best of luck!