All Forum Posts by: Doug Spence

@Devin Voelker Welcome to BP! You're in the right place to learn more about real estate investing. There are lots of military folks on here (I'm still active duty Navy) who are eager to help folks like yourself along their journey. 

@Andrew Postell already gave you some fantastic advice below, but I want to make sure you know that the VA loan is zero down, but you will likely still have to pay for closing costs! I know lots of folks who have been surprised by this when its time to close on their property. You might be able to get seller credits for the closing costs, but make sure you have some capital (2% of the purchase price should be enough) for closing. You can't roll closing costs into the VA loan! Though you can roll the funding fee into the loan.

Good luck and let me know if I can help with anything. My wife and I are house hacking now in San Diego using her VA loan.

@Allan C. Great advice! @Jordan Morrisa Also, consider finding a title company that can do closing documents without wet signatures as well. Not sure if that was just a COVID thing that isn't around anymore, but its worth asking about. 

@Jordan Morris Welcome to bigger pockets! Yes you can absolutely buy and manage rental properties from anywhere in the world. I have not done it internationally, but I have purchased, managed, BRRRR'd, and flipped multiple properties out-of-state successfully while active duty military (I've been in the Navy for a little over 14 years now).

I recommend starting with David Greene's book "Long-Distance Real Estate Investing". That book was hugely impactful for me, and really opened my mind up to the idea that you don't have to invest where you live. It's all about having the right people on your team!

I'm happy to chat about my journey as well or answer any questions you may have.

Good luck and keep us updated on your journey!

@Jessica Pratt Check out the book "The Hands off investor" by Brian Burke. It's a fantastic book about syndications, both from the LP side (limited partner, aka passive investor) and GP side (general partner, aka the operator). I believe its the best book out there about real estate syndications. Joe Fairless' "Best Ever" book is also great, but its more focused on multifamily, not syndications in general. 

@Colby Zeller I would definitely self-manage! Its a great learning opportunity, and you'll save money. You don't necessarily have to do all the repairs/maintenance though - I would only do what you feel comfortable with. Also the tenant may be more comfortable with a professional coming into their home to repair things instead of you, but most wouldn't mind.

You'll also save a lot of money by screening/placing the tenant yourself instead of hiring a PM to do it. Zillow is a great free tool to do the listing and the background/credit checks. I've done it myself many times and recommend it. 

Good luck and keep us updated with how its going! 

@Josh Edelman Find someone with 200k that wants to invest in real estate but doesnt have the time or knowledge to do it, and go in 50/50 with that person. Obviously this is an oversimplified plan (you would want to make sure you have shared values and long term goals, etc as well as a JV agreement with solid operating agreement) but you don't have to fund everything yourself!

I would consider narrowing down your focus down to one location instead of many. That way you can really learn that market well, network there, and focus your efforts going deep in one location (that fits your investing criteria) rather than go shallow in multiple locations. 

There are many other ways to fund deals than a HELOC. I think using private money could be the best way for you to grow your portfolio at this stage. I've used private money to do out of state brrrr's and flips, and I'm really glad I did. Happy to chat more about my experience doing that if you want.

If the goal is 10 cash flowing doors, then why focus on SFH? Why not just buy a small multifamily property? You could hit your 6-8 year goal in one transaction. This is very doable.

@Josh Edelman Good on you for doing real estate on the side while active duty. I'm still active as well and its definitely a challenge building a portfolio on the side while managing your military duties. 

I have a few questions about your situation:

-Are you looking to acquire another SFH in Vegas and you're just not sure how to fund the purchase?

-What are your long term goals? (5-10 years out) 

-What are your strengths within the context of real estate? (acquisitions/deal flow, underwriting, managing a team, etc)

@Mary Ainsworth I would do option 1, and then find private money to do option 2 at the same time! You got this!

I respectfully disagree with this sentiment. I haven't purchased anything since last year, but I'm still a real estate investor - not a 'fake investor'. It all depends on the individual and their goals and risk tolerances. Its easy to peg someone as a phony for not doing deals, but what if that individual is just being patient? What if someone is a beginner and they're not finding any deals that fit their criteria right now? 

I know lots of very savvy investors that are preserving capital right now, waiting for opportunities that they expect will be coming later this year/early next year, specifically in the multifamily space. Would you consider those individuals 'fake investors'?