All Forum Posts by: Anthony Martin

@Joel Owens

@Joel Owensand @Michael Wagner Thank you for the responses!

Joel, my preference is to go at this solo. I hate the fact of risking others cash if I'm not too sure of the outcome, especially with my almost nil knowledge/experience. Maybe later in the game when I'm more comfortable with my abilities would I consider pooling in other investors. Right now, I think NNN and commercial is my end goal for my investing plans. Be it a mix of self-storage, retail properties, warehouses, or whatever other options are available. If I stick with the career I have right now, I'll be able to retire with lifetime paychecks when I turn 40. If that happens, I want to be able to enjoy not having a j-o-b in the sense that I report in at a certain time every day to a boss who may or may not like me or my work. No one likes alarm clocks and I'd love to smash all of mine after I retire! So, in the next 13-15 years, hopefully I can have the reserves/liquidity in excess of that $200k you mentioned and still maintain a good income. I do appreciate your contribution and information!

Michael, I'll actually be out of the country for a couple years for work, so this is a back burner thing, but the more information I can gather now, the better! I think it's the thought of most folks who haven't participated in the self-storage industry (as was my mindset until I browsed your blogs; great writings btw!) that a storage facility will have low maintenance costs. I mean, hey, it's a bunch of garages, right? There's always things under the surface that we don't know about until we do our due dilligence and research and gather more information. I'd love the opportunity to be able to discuss operations and the business with a couple owners at a sit down, but again, that's a few years in the future.

Thanks again to the both of you for the input, it's very much appreciated!

@Joel Owens

Instead of creating a new thread, I thought I'd continue on one already open for new information.

My end goal is to be as passive as possible. I see this best coming from NNN in self-storage with a possible on site attendant. What are your thoughts on this and what advice can you give on breaking into that market? I'm currently invested in a couple SFRs and plan to grow that portfolio for a few more years, but I want to start doing and accumulating research to better formulate my plan for years to come.

Anthony

@Edwin E.

Welcome to BP! And congratulations on taking the step towards bettering your financial future. I'm currently AD deployed right now (unfortunately got stuck in the call center this go around, so I do have connection readily available)

The biggest thing I can stress is have a strong team that has some inclination as to how the investing and landlording game works. If you don't have someone, it may be in your best interest to consider a Property Manager. Yes, they cost 8-12% (typically 10%) of your monthly rent. I'm not saying family isn't competent, but sometimes they don't have the experience to deal with potential bad situations. If you're looking to rent to military, as I do, you always have the benefit of going to their CoC if big issues arise. I'm actively working on purchasing my second investment property and I couldn't do any of this without my team. My eyes are a very good friend of mine who I'm teaching about inspections and certain things to look for; my realtor is an amazing woman who is beyond dedicated to her clients. Build your team and go from there. I'm still new as well, so I may have missed some good tips, so I hope others chime in.

Feel free to message me here or look me up in global.

SSgt Anthony H. Martin

@Account Closed

Welcome to BP and congratulations on getting started so early. I'm 25 and bought my first SF when I was 23. I hated paying my mortgage, so I brought in some roommates to pay it for me. My house is now fully rented out and I have a bid in on property number two, just waiting to hear back from the bank on how greedy they want to be. Everyone here is always learning, so keep up with the forums, ask any questions you may have (or search for them on the billions of threads out there) and be sure to check out all the podcasts. After my retirement from Active Duty, I plan on getting more into commercial NNN to be more hands off than managing a portfolio of SFH. Ohh, and don't forget to set your Keyword alerts. But for now, read, read, read, and ask away! Again, welcome to this amazing community! Best wishes on prosporous endeavors.

Anthony

I would only say 'nay' to the pot o' money because, and it really depends on the contractor, I wouldn't want them to be so frugal that they cut so many corners just to keep most of the pot and you end up with a much bigger bill on the back end to fix everything he "fixed" poorly. Just my 2c.

I'm a few chapters into The Warren Buffett Way by Robert Hagstrom, but I'm moreso concentrating on getting through Getting Started in Real Estate Investing by Michael C. Thomsett; tons of great information for the newbie and I'm learning so much. I've also got The Millionaire Real Estate Investor by Gary Keller, Dave Jenks, and Jay Papasan sitting on my nightstand for when I finish Getting Started.

@Lane Kawaoka

"As long as you meet the ownership and use criteria for 2 of the previous 5
years, you are eligible to exclude gains of up to $250,000 single and
$500,000 jointly. Now, because of depreciation taken on the rental
property, your excluded gain will be reduced by the amount of the
depreciation taken. In other words, if you sell a property and net $80k
profit, and your depreciation is $18k over the life of ownership, your
excluded gain is $62k. You will be responsible for depreciation recapture
on the $18k depreciation, which I believe is taxed at a rate of 25%.

Remember, you cannot sell more than one home in a 2 year period. You can
sell the rental property, after living in it for 2 years, and then, 2 years
later, sell your other home."

The above script was taken from the following thread by a gentleman named Jurgen Hartwig:
https://groups.google.com/forum/#!topic/alt.home.repair/zW3q6gmO31I

Hope this helps and that some others will chime in.

What kind of profit are you looking at taking when this property is sold? Are you going to be taking the profit, or will you be doing a like kind exchange (Section 1031)?

If you're speaking about the taxes on capital gains, the requirement is that you occupy the property for a minimum of two of the last five years. it sounds like you're in the clear from that standpoint.

@Pyrrha Rivers

First off, welcome to the BiggerPockets community. After perusing the many blogs, podcasts, forums, etc. I'm sure you're well aware how amazing this community is.

I believe we're both working through some of the same challenges. I'm currently Active Duty deployed and am working very closely with a lender, realtor and associate to help me make my second purchase. It's far from easy making deals in person, and adding distance to that only amplifies the difficulty 10 fold. So far, I've learned a ton! Right now, I'm working on getting a PoA for my associate for Bank Loans and Purchasing of real estate. This will be a big part of your process as you won't be physically present to wet sign at closing or offers.

Feel free to Colleague Request me, maybe we can bounce a few learnings/ideas off each other. And thank you for your work over in Japan!

Anthony