Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
Hello my name is Austin I'm currently living in Kailua, Hawaii stationed on Marine Corps base Hawaii. I have about 6 months left in Hawaii and as I transition from the Marine Corps to the civilian world i will be moving back home to Southern Illinois and I really would like to get into real estate investing. I have about 30 grand saved up and I'm looking for a starting point so I would be grateful for any advice for anyone can provide to my situation thank you and Semper fi!!!
Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
8y
@Austin Timothy van meadows lets grab coffee sometime! Also, I host a meetup in Kailua the first Tuesday of every month. Sept 4th 1800-2030 at Kailua united methodist church...come on out, network, and welcome to the club!
Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
8y
@Austin Timothy van meadows lets grab coffee sometime! Also, I host a meetup in Kailua the first Tuesday of every month. Sept 4th 1800-2030 at Kailua united methodist church...come on out, network, and welcome to the club!
New to Real Estate · Channahon, IL · Member since 2015 · 33 posts · 9 votes
8y
Thank you for serving. I have family over in Harrisburg and carrier mills. I’m a realtor outside of Chicago, so if you have any questions I’ll be happy to answer anything I can. I’ve had two friends finish up from the marines, one was a bulk fuel specialist down in cherry point. He then went on as an embassy guard. My other buddy was crash fire rescue out in 29palms. So thank you again for your service.
Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
8y
@Mike Easton thank you Mike I really appreciate it and I have family also in marion Harrisburg and up in Chicago I would like to get in contact with you I'm new to this and have lots of questions thank you again
That is not a lot of money to do investing with. I suggest:
He's got a VA 0% down loan with closing costs, and then $20k left over.
That's potentially a garage converted into a rental unit that goes for $1250/mo.
$1250*12/$30k = 50% CoC ROI.
Are you CERTAIN that's not enough startup capital to get anything going with? :)
(I don't know that specific market or what a studio garage conversion goes for... maybe only $625/mo and it's "only" 25% CoC ROI that he's looking at...)
Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
8y
I am certain that is not enough money to do much with conventionally.... He is also transitioning which means no job yet= no loan, no dti's, not sure of cred score or debt... too many unknowns...
1st prop= zero down
all others= 25% +/- which means there is no #2 property conventionally. Even if there were he would expend all his cash reserves which is the end of the ride.
No matter what he can be a 1 and done or look for alternative strategies/partnerships....
Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
8y
@Danny Webber thank you I appreciate the truth and if I need to take more time building my cash pile to have more skin in the game by maybe wholesaling or just working than that's fine. I appreciate all the advice just looking for a start point an if I should continue saving what would be a reasonable amount to start or work to, so I can start a path in real estate an what's the best path. Like I said I'm very new to this but very interested just trying to get as much knowledge so I can take my first step.
Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
8y
I would jump in now.. the water is always warm. Just target your strategy to your current resources/skills and work on building your empire as you go. Get a written plan, get a mentor, set a daily schedule of 10 hours +/-, treat it like a job, get your RE Lic, etc.... so much more!!
Hook up with local REI groups- do not pay for guru courses!
Winthrop Harbor, IL · Member since 2015 · 28 posts · 15 votes
8y
I'm basically in the same situation. Stationed overseas and I get out of the Air Force in about 4 months. I'm going back home to northern Illinois though. I have a house in Texas which I bought with a VA loan about two years back and its now a rental. My plan is to use more of my VA loan benefit and try to find a duplex or up to a fourplex to buy, live in one unit and rent out the rest. Try to get it with some equity built in so I can refinance sooner rather then later and keep moving from one property to the next until I have a lot of them. It's been tough trying to find mutli-families where I'm at up north but I'd probably settle for a single family house bought at a good discount if possible of like 10%.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
@Danny Webber
I bought my first two rentals with about 30k all in. Both were 20 percent down conventional and included closing costs so it’s definitely possible to do stuff with 30k.
agreed, you can do alot with 30 but your goose is cooked once that is done.... i would never advocate buying to low end rentals and burning through your cash... point taken.
i would look for assumptions, etc with no money down or very low cash out of pocket to get started... SOOO many ways to skin the cat!
agreed, you can do alot with 30 but your goose is cooked once that is done.... i would never advocate buying to low end rentals and burning through your cash... point taken.
i would look for assumptions, etc with no money down or very low cash out of pocket to get started... SOOO many ways to skin the cat!
Yes everyone is different and you bring up a good point about this strategy. If you go the “low end rental route” (most my rentals are C to B or B minus rentals for the area) you want to scale quickly.
Since I’m buying rentals at 10-20k all in (down payment plus closing costs plus minor repairs) I can scale quickly. That’s the key. If you buy these rentals and stop for 2 years, I wouldn’t recommend that. I’m on pace to have 6 or 7 by next year including one paid off. At which point my risk starts to get spread around some.
Lender · Houston, TX · Member since 2018 · 87 posts · 53 votes
8y
@Austin Timothy van meadows You can qualify for a Hard Money loan to fund a flip. $30,000 in the bank is plenty enough reserves for a lender to give you a pre-qualification to purchase and rehab a property. Hope this helps Semper Fi Brother.
Lender · Chicago, IL · Member since 2016 · 189 posts · 153 votes
8y
Just to add my two cents there is a new VA loan that also adds dollars to rehab to the purchase price, same loan, same rate, same 30 year term. It Is for owner occupied only if that helps. I posted it on my BP blog. Its valid in all 50 states . But as was discussed the veteran still needs a job when returning from active duty to qualify for the loan. But it is at todays rates and 100% financing. It may work in some situations.
Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
8y
@Aaron Beauchamp thank you for the advice an i appreciate everyones advice and feedback all of the information is a big help I will look into everyone of my possibilities. As of now I will continue to save for my transition out of the USMC which will be in March an hopefully by then I'm able to gain as much knowledge and funds to start my path, so please continue to give advice and insight I will take anything I can get. Semper Fi!!!
Investor · Bloomington, IL · Member since 2016 · 59 posts · 19 votes
8y
Hello Austin.. And good to see another Marine brother on here. I'm an investor in Central Illinois and my last deal was a 5 Unit with NO money down. They actually paid me $1,200 to take the property off their hands.
As others have mentioned by all means consider using the VA loan for 100% financed 2, 3, or 4 plex. Yes, you must live in 1 unit I believe up to a year.. But that's a good start. Since cash is king .. Try and be very selfish with that cash.. Here in Illinois (and other places) there are banks willing to do 85-90% loans as long as you have SOME skin in the game (i.e. 10%). Depending on where you are investing you can find 3 and 4 Unit buildings in the $90-120k range in Southern Illinois.
If you're considering doing ANY college or schooling return to Illinois so you can take advantage of the Illinois Veterans Grant. I used that to pay 100% of my tuition and 80% of my fees when I attended Illinois State. Connect with me .. I can be a BIG asset to your network.. And that's most of this business.. A networking game. S/F
Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
8y
Give me a call when you get back to Southern Illinois. We have regular meetings in the Alton area, Belleville and way down in Marion. You can earn your Professional Housing Provider Designation from the National Real Estate Investors Association by joining us. Many of those classes are available online and you could be earning it right now.
Semper Fi! Jarhead. L/Cpl 0341 Honorable in 1977 So yes, Leathernecks can do this. Always wanted to name my company Teufelhunden Investors Group.
Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
8y
@Matt Powell thank you for your insight I really really appreciate it, and I would be grateful to get connected with you for my first steps into real estate and networking purposes that would be incredibly helpful especially from a fellow marine an someone in my area, again thank you and Semper fi brother!!!
Flipper/Rehabber · Marion, IL · Member since 2018 · 14 posts · 9 votes
8y
@George Skidis I will most definitely give you a call an get connected with you and thank you for reaching out to me it's more than helpful. I have the up most respect for a fellow marine especially the old Corps and a mortarman. Myself I'm an 1833 Amtraker I'm a vehicle commander for the mortarman vehicle an take the mortarman to there support by fire positions, again thank you and semper fi brother looking forward to get in contact!
Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
8y
First off, thank you SO much for your service Austin! Sincerely grateful for all you give to our country!
Very excited for you as you get into the world of real estate investing. Being in the military, VA financing is almost undoubtedly the way to go. And if you're thinking about building a real estate portfolio with multiple units, you might first consider a 3 to 4 unit purchase where you live in one unit and rent a few out. VA allows you to do this with no money down (leaving those dollars for marketable improvements if you like, or another investment) at a great rate. It's absolutely worth looking into and taking advantage of if it meets your goals.
Aside of having the advantage of this financing, by living in a multi-unit with rental units under the same roof, you will learn a TON. This is how I got my start in real estate actually, and it was the best crash course I could have taken at an early age. Food for thought. Anyhow, I'm more than happy to walk you through some of the ins/outs there, both on the financing end and beyond. Never hesitate to reach out!
Lender · Carlsbad, CA · Member since 2016 · 90 posts · 56 votes
8y
Hey man, the VA loan is a great tool for a house hack. Just be aware of two things:
a) make sure you apply for service connected disability. If you get 10% or more, you will have your funding fee waived fo' life. Thats a big savings when you want to buy a 700K home and are saving 3.3% in fee later on down the road.
b) MAKE SURE you are clear on what you are doing for income. You have to have 2 years history in the same industry. If a lender can't figure out how to connect industry experience from the military, they are not good. It is easy to do because the skillsets in the military are so vast. But - make sure you don't think you can use military income to qualify for a home once you get out. You can use civilian income on day one - but you have to connect 2 years worth of INDUSTRY history..
If you have any questions, let me know what I can do to help out...