All Forum Posts by: Tanner Sherman

I would like to say that real estate is fueling my passion because my passion is to not have to work. I don't (at this point in my journey) LOVE real estate so much that at the point of financial freedom I would continue to do it. For me it is a gateway but who knows how I'll feel once I get neck deep.

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@Jonathan Craig if you pay the cost of the internet you should ask them to pay for the convenience. Had you guys been splitting it then I would say split it. On the other hand, If they are a good tenant and you want to take care of them (and are cashflowing) it would be a nice gesture to just do it for them.

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@Nick Love I am and have always been more productive later in the day. I cannot go to the gym before work because I have no motivation or desire to be there and don’t get anything done. I like to think I am just as productive at night as some are during the day, my day is just shifted to the right.

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@Merrett Lane I am moving to the Omaha area this summer from out of state and would love to connect.

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Originally posted by @Jeff Copeland:

Originally posted by @Tanner Sherman:

Sir,

This is very great information and thank you for explaining how the 4% can put me in over my head. I am tired of paying someone else's mortgage with my tax-free BAH, so do you see it as beneficial to still go with the VA loan, considering I do not have any money to put down, and just work my *** off to pay it down fast in the next 3 years to beat the fees?

TIA,

Tanner Sherman

Just to clarify - It isn't the VA funding fee, per se, that is risky, it's the concept of 100% LTV financing in a potentially declining real estate market.

I will definitely keep that in mind. Thanks for the clarification.

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Originally posted by @Scott Jensen:

Congrats on starting your real estate journey! We have 3 kids (which feels like a lot because they are so loud!) and are househacking a single family house by renting out our basement. You could look into doing something like that, rather than looking for a duplex with that many bedrooms.

Our house is a 2 story with a basement, our family lives on the main level and second story (4 bedrooms up) and we put in a full kitchen in the basement (already had a family room, bedroom, and bathroom). So, our tenant has a full apartment in the basement, but she does use our front door to come in and out since it isn't a walkout. We knew her daughter, so felt comfortable with this arrangement. We were very upfront with her that our kids are loud and jump a lot (since she is living under us!), and her rent is very reasonable to reflect that.

Hopefully that at least gives you some ideas to think about for house hacking with a family!

Scott,

You must be right up the road from me- I live in Shoreview! Thanks for the tip I honestly had not thought of that. Renting out a basement would not be very difficult especially since there are very minor things needed to give a tenant independence and seclusion.

Thanks again, and I'd love to connect if you're interested.

Tanner Sherman

BTW- Have one more... it will get exponentially easier!

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Originally posted by @Jeff Copeland:

You can only take out a second VA loan for a second primary residence. For example, if you buy a primary residence at duty station #1, live in it for a couple of years, and then rent it out when you transfer...You could then buy a second primary residence at duty station #2 with your remaining VA eligibility (which will be reduced by the amount used to guarantee house #1, and comes with a ton of red tape).

The biggest risk of using a VA loan with no money down is over-leveraging. I've seen veterans get 100% financing, and roll their VA funding fee into their mortgage, which leaves them leveraged at like 104% LTV. That's great if real estate prices are increasing at 10% per year. But what happens if the real estate market contracts by 15%, and then you get orders to your next duty station? You're upside down on house #1, and may not be able to rent it or sell it and cover your mortgage.

Compare this to a conventional loan where you put 20% down: Looking at the same 15% drop in value, you're fine. You still have equity in the house (because you put 20% down in the first place), and (worst case) you can still sell it and walk away without going into foreclosure.

You're right that there are very few duplexes with 5 bedrooms. I can't help you there.

But as a fellow veteran, I urge you to be very careful with 100% VA financing - There is a lot of uncertainty in the economy and the real estate market right now, and you don't want to be left holding the bag if prices drop.

Sir,

TIA,

Tanner Sherman

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Originally posted by @John Underwood:

Originally posted by @Tanner Sherman:

Oneil,

I have not yet read, but it just came in this week from Amazon, The 16% solution. It is a book that I discovered from Rich Dad Poor Dad that goes over these types of situations. Hopefully you beat me to finishing this book and can benefit from it. I do not know much about tax liens, but the idea of putting your money into it with a 16% return sounds much better than the .000000000000000000 (infinitely tedious 001) percent from a savings account. What I do know is that it is very rare to be awarded a property through the purchase of tax liens. The best case is basically just that you get a high percentage savings account. When it comes to the "you choose the percentage", you don't, you bid against others who would also like to purchase this tax lien. There are companies out there that focus on this so the competition is much higher. The dream is to get a 16% return, but if these companies are willing to take 1% less than you no matter what you say then it gets tough. The ones that make it to the news are the "Person won property from tax lien after honest farmer forgot to pay taxes". Obviously it is much more difficult to lose your property from not paying taxes than this. All of this is on your county's website if they offer tax liens.

Hope this helps,

Tanner

I own many properties that are now rentals that I acquired at tax lien auctions. I gotb5 houses one year, but average 1 or 2 per year.

That is incredible and I can't wait to learn more about it! I'm glad it worked out for you, sir, and if you'd like to share the knowledge I'd love to connect. Also, thank you for your service- my father was an MM1 and my father in law was an aviation mechanic on the Forrestal. I am active(AGR) Army and my sister is in the national guard. My brother in law is also an AGR mechanic in the Army.

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Oneil,

Hope this helps,

Tanner

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All Forum Posts by: Tanner Sherman

Tanner Sherman has started 7 posts and replied 322 times.

Post: Tenants pet died - reduce the rent?

Post: Is Real Estate your passion ? Or is it fueling your passion ?

Post: Tenet request better Internet connection

Post: As a real estate investor, are yoou an early bird or night owl?

Post: Young Professional Looking to Help & Learn in Omaha/Lincoln

Post: VA loan investing with 7 KIDS!

Post: VA loan investing with 7 KIDS!

Post: VA loan investing with 7 KIDS!

Post: Paying Past Due Property Taxes

Post: Paying Past Due Property Taxes