Rental Property Investor · HARFORD COUNTY, MD · Member since 2022 · 26 posts · 18 votes
Hello All,
New to BP, currently active duty military and looking to start REI through VA loan house hacking. I've been reading through the forums and everyone's post have been pretty inspiring.
I will be taking the upcoming Rookie Bootcamp and I'm excited to learn from the community.
Investor · Member since 2022 · 46 posts · 20 votes
4y
Welcome! I'm also just getting started. Just moved to DMV and also still AD. If you're in the Baltimore area, there's a meetup that happens (usually once a month) that's great for networking. Check out the Central Maryland REI Social (under network --> meetups) https://www.biggerpockets.com/...
Rental Property Investor · Renton, WA · Member since 2022 · 10 posts · 4 votes
4y
I will be taking the BP rookie bootcamp too!
Right now reading the BRRRR book by David Greene, researching markets, so that I can hit the ground running. I am looking to do an out of state BRRRR on a small multifamily.
House Hacking is definitely a great way to start. See you in the bootcamp.
In today’s market, investing has grown beyond traditional assets. While stocks, bonds and mutual funds are still common portfolio inclusions, there are many other avenues that can also be rewarding in the long run, if you are willing to put in the time. One such avenue is real estate investment, which can be a lucrative way to build money for your retirement. However, it’s not for everyone. Real estate investment takes dedication, research and planning. If you are interested in investing in real estate, here are seven tips to guide you.
1. Know the costs involved.
To be frank, real estate investment is not cheap. Properties cost quite a bit to purchase outright, but if you have the funds or are willing to take out a loan, it can be worth it. However, it’s not as simple as purchasing a property and watching it make money. There are additional costs to keep in mind: basic maintenance, yearly upkeep, upgrades, and expenses like utilities and taxes.
2. Select the property type.
So, you have enough set aside for real estate investment. Now, you must decide which type of property to invest in. You can purchase rentals, which could be either commercial or residential. You can become a landlord and rent out a home or apartment. You can use your property as an Airbnb or a vacation rental.
If keeping residential property isn’t something you’re interested in, you can opt for the commercial option. Or you can avoid renters and purchase property to flip for a quicker return. Before selecting a property, decide what your plans are for it and what goals you have in mind.
3. Check out the area.
When it comes to real estate investment, location is a key factor. You don’t want to buy in an area just because the price is right. Perform your due diligence: Check the market value, the neighborhood and what the location offers. The type of rental you’re interested in can help determine where to look.
Research the competition, and determine whether the property you’ve chosen is in a prime spot for its purpose. For residential or vacation rentals, consider the community, proximity to popular attractions and way-of-life factors. For business rentals, check out the area’s population, parking and demographics.
4. Protect yourself.
If you are thinking about investing in one or multiple properties, consider using an LLC to purchase them. An LLC, or limited liability company, can help you with risk management. The LLC has ownership over the properties; if anything should happen on those properties, you are not held personally responsible. Additionally, having an LLC can protect your retirement fund should something occur on the property.
It can also give “checkbook control,” which can help if time is a factor when accessing your retirement funds for real estate-related purchases. After opening an LLC using your self-directed individual retirement account, your account is the business, and you are the assigned business manager. This process allows you access to your funds whenever you need them; however, that doesn’t mean you don’t need a custodian, or that you can take the funds for other uses. All funds removed must be used on the property, and any withdrawal needs to be reported to your custodian. However, instead of being charged for multiple account changes, you only need to report it once. This is especially useful for paying fewer fees.
5. Decide terms.
After selecting your property type and location, you can come up with the terms regarding your investment. Calculate rent, fees, yearly costs and emergency funds to keep a running budget. Are utilities going to be included? Keep in mind any fees and how much funding you’ll need to maintain the quality of your investment.
Consider hiring a property manager, especially if you plan on having properties in different locations. The key is to decide this ahead of time, so you aren’t blindsided when the bills start to roll in.
6. Buy property with growth in mind.
When you invest in real estate, you may eventually want to sell it. Whether you intend to flip it immediately or hold on to it for a while, you’ll want to profit. The goal is to sell your property for more than you paid for it. Build your property value by making simple upgrades or additions. When you increase property value, you can sell it for more, and your hard work will pay off in a big way.
7. Keep important numbers on hand.
Real estate investment takes a village. While you may have the power, you are limited in what you can do to the property yourself. Have a go-to list of people who you will need to assist you with your investment. Property managers, an attorney, a CPA, real estate agents and money lenders are all important resources. Also, keep in mind anyone you will need to keep your property in tip-top shape: an inspector, plumbers/electricians, a handyman, pest control experts and contractors. While you may not need all these people upfront, it’s good to have a few reliable numbers to call.
Real estate investment can be an undertaking; however, when done properly, you can build a successful nest egg. Take your time and perform due diligence before deciding if real estate investment is right for you. Be sure you have the time and resources to dedicate to this investment strategy and build your retirement fund today.
Good Luck! The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
4y
Hello Naphese! I am a veteran as well and I also got started with house hacking. You're on the right path! Let me know if you'd like to connect sometime and talk strategy.
I was just in Hopkinsville for a short time last month and was checking out the market out of curiosity. Nice to hear from you, I’ll definitely keep you in mind as I begin my investment journey. Thank you.
New to BP, currently active duty military and looking to start REI through VA loan house hacking. I've been reading through the forums and everyone's post have been pretty inspiring.
I will be taking the upcoming Rookie Bootcamp and I'm excited to learn from the community.
Best wishes to all and much success!
Welcome to BP Naphese! As an Army veteran myself, I am a huge fan of seeing service members taking advantage of the knowledge and resources out there! I attribute a vast majority of my success in life to real estate. It can absolutely change your life when done correctly. Looking forward to seeing your growth.
Investor · Member since 2022 · 46 posts · 20 votes
4y
Welcome! I'm also just getting started. Just moved to DMV and also still AD. If you're in the Baltimore area, there's a meetup that happens (usually once a month) that's great for networking. Check out the Central Maryland REI Social (under network --> meetups) https://www.biggerpockets.com/...
New to BP, currently active duty military and looking to start REI through VA loan house hacking. I've been reading through the forums and everyone's post have been pretty inspiring.
I will be taking the upcoming Rookie Bootcamp and I'm excited to learn from the community.
Best wishes to all and much success!
I 2nd the Maryland REI social idea! Reach out if you need anything and best of luck.
New to BP, currently active duty military and looking to start REI through VA loan house hacking. I've been reading through the forums and everyone's post have been pretty inspiring.
I will be taking the upcoming Rookie Bootcamp and I'm excited to learn from the community.
Best wishes to all and much success!
I 2nd the Maryland REI social idea! Reach out if you need anything and best of luck.
Welcome to BP! I also recommend coming out to this monthly meetup in Laurel. Very casual networking with other local investors in the area and there are usually some agents, flippers, etc. that attend.
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