Newbie-Military stationed Overseas-How can I start investing now?

Question

I am a newbie to Bigger Pockets and Real Estate Investing. I am active duty military and currently stationed in Germany for another year and a half. As I continue to read and build a foundation of real estate investing knowledge , I am wondering if anyone has any ideas of how I could get started in investing while Overseas or should I wait until my next move? Thank you for any input-Anxious to get started!

William Allen · Answer

Learn as much as you can and figure out where you would want to invest and what strategy would be best for you. I would recommend somewhere with family or friends you trust who know real estate that could help you out while you are overseas or moving around the country throughout your career. Don't rush into anything. Some strategies that would work for you are buying a rental through a vetted turnkey provider or private lending if you have cash to lend. You could also use your IRA or 401k to lend short term to other flippers who will pay a good interest rate. That is passive and you will still be building capital in real estate. Once you learn enough and find out what you want to do you can figure out what will be best for you and what your future is in the military.

Good luck!

Kerry Baird · Answer

We are another military family who have done what you want to do.  We lived in England for 16 years and learned about real estate in the 4 years between PCSs.  I bought two turnkey properties in Texas in 2012, and still have not seen the inside...only drove by this past summer.  And then we bought one off the MLS in Florida, by building a team via email.  I found an investor friendly Realtor, he recommended a lender and insurance guy, he scheduled the inspections.  We called a property manager to start listing it for rent, and got it all put together.  Only now, at 23 years in service, have we used either of our VA loans for our first US owner-occupied property.  Similar to you, we are probably putting down roots here in Florida, and with the cold winters and Baby Boomers retiring, the beaches of Florida are likely to shape up to be a great place to hold properties.

John Cohen · Answer

@James Fox Love that you want to take action!! My recommendation would be education. You want to be prepared when you make your first move, but with that being said you don't want to get lost in research. Also think of becoming an investor into a deal so you can make some money while you learn. If you have any questions let me know, but I am currently working with a couple people in the military now.

James Fox · Answer

Thanks William, sounds like solid advice. I will know better in six months or so where we will be heading next. Then I guess I can use that last year in Germany to understand and research the market I'm going into, reach out to make connections within the community and continue to save. Our next move should be the last one in the military. Ready to settle down and create a future full of Real Estate Investing.

Account Closed · Answer

Do you have any friends or family that could help you out a little bit?  Have you decided on a location you want to focus on?

Danny Hubbard · Answer

Welcome to bigger pockets! I was in the same situation. I am stationed overseas (Japan) and I was so anxious to get started. I focused on education, networking, and saving money. I am glad I waited before I got started, and it took me a while to find people I trust to get a team in place.

James Fox · Answer

Thank you to everyone for all the great advice. I feel confident that I made the right choice in joining BP. I have already started to enjoy a daily fix of reading forums and learning from others' successes and mistakes, before I start making too many of my own. Seems like a great community!

Steve Marshall · Answer

James,

I'm in a similar position.  Just started investing while living in Bangkok.  I'm active duty AF.  The key is having a realtor/property manager you trust.  I found one using a recommendation from another service member who invests from overseas.  So far-so good.

Ali Boone · Answer

There are ways to be a hands-off investor. I live in LA and my closest property is 2200 miles away from me....not as bad as being in Germany but exactly the same situation (might as well be). If you want to start investing now, you certainly don't have to wait until you are back. It's all about the team(s) you have in place. I've worked with several international investors who have bought here and done just fine.

Priti Donnelly · Answer

@James Fox, welcome to BP!

To get started, the first question is to determine if your goal is based on capital appreciation or cash flow. If your strategy is to buy and eventually sell at a higher value, then, you may want to invest in the U.S., U.K. Singapore or Australia where property values are rising. Capital appreciation can be a lucrative, but speculative investment.

If your strategy is to benefit from immediate cash flow of high yielding properties (7% to 12%), then another option is Japan, but outside of Tokyo. This option is far more affordable and less speculative.

Once you have established your personal goals and direction, you’ll be able to decide where to invest and then focus on the next phase, which is the process of investing in that market.

Hope that helps and good luck!

Newbie-Military stationed Overseas-How can I start investing now?

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