All Forum Posts by: Matt Long

@Joshua Stevenson - First off, welcome to BP.  You have come to the right place to ask your questions.  There is a ton of information available on the website and I would definitely recommend looking around and reading through some of the old forum posts, listening to the podcasts, and signing up to participate in the webinar.  All of those are great things for someone starting out and trying to learn the basics.  Secondly, I would recommend trying to find a mentor in your local area who might be knowledgeable about your market.  Lots of times, RE Investors will hold local meetup groups and those are a great place to meet folks and discuss your future in real estate.

In response to your particular question - I am not sure about your particular market and what those properties normally sell for. I know that it is definitely possible to buy real estate without a whole lot of cash. We frequently buy properties in our LLC with very little or no money down. @Brandon Turner even wrote a book about this topic which you can find in the store here on the site.  One method you might try is house hacking if that is available in your market.  This could include buying a duplex and living in one half while renting the other half.  The rent pays the mortgage.  Do you have any other equity besides the cash?  Lenders will often use other property as equity.  You might also look for a partner for your first deal.  Lots of ways to get creative about it.

Best of luck and stay engaged with the community.

@Rebecca Simpson - First and foremost welcome to BP!  I am in the Navy so can understand the intricacies of real estate investing while in the military.  My recommendation would be to look for a way to house hack - maybe find a duplex in which you can live in one side and rent the other.  This is a fantastic way to start out.  If you have your mind set on buying a single family home then make sure you are not buying your dream home.  Those rarely make good rental properties.  Buy what is going to be a good rental property when you leave rather than something that has all the bells and whistles that you might like in a personal home.  If you can find something that needs a little bit of work but not too much then that is even better as you can add value by doing some cleaning, painting, and small projects between now and when you move.  All the best and thanks for your service!

Hi Linda and welcome. As you said, lots of great information here on the website. It would take a long time to go through it all. I find myself reading posts and listening to podcasts quite often throughout the week. My commute to work is a great time for listening to the most recent podcast. Make sure you check out the great calculators they have as well. In my LLC we use these all the time when analyzing properties and when making proposals to lenders. Best of luck as you begin your RE journey.

@Kyle Grimm Do you mean your personal networth type of financial statements or the history of your properties financial statements?  There are a number of online applications such as Mint that will track your personal finances.  Or you can use Quicken online.  As far as tracking your properties, we started out using Google Sheets.  If you are under 10 properties then this is probably ok.  More than that you probably need some good property management software.  There are several available here in the Pro Perks section with nice discounts.

Hello BP community.  I have been active duty Navy for the last 19 years.  As I begin looking to retire from active duty in the next couple years and transition to the civilian sector, I see real estate playing a big role in my family's future.  My brothers and I have already started investing in the midwest.  However, one of the areas that I struggle with is networking.  I am very introverted and have had a hard time initiating conversation and relationships.  Once I know someone and feel comfortable with them then I am fine and can talk about anything.  I am curious if any other investors are in a similar situation.  If so, what resources have you utilized to help you get outside your comfort zone and learn to have those conversations and relationships even when it is uncomfortable.  I heard @Brandon Turner make a comment in one of the podcasts that he was introverted and it surprised me as he seems very outgoing.  Greatly appreciate any resources or feedback you might have in how I can work on building my networking and conversation skills and just generally get outside  my comfort zone.  Thanks in advance.

@Brian Johnson I have never been a super handy guy either but I have found that YouTube has videos on pretty much everything.  I would suggest trying to learn some of the simple stuff via YouTube or some basic home mechanics books you could get from the local library.  For more complex stuff it is probably better to stick with a professional or see if there is a local handyman.  Do you know other investors in your area?  Maybe ask him who they use for quick turnaround items.  If you know something is going to have a long lead time (fireplace inspection, furnace inspection, etc...) then put it on your annual calendar to get those scheduled several weeks or a month in advance of when you need it.

Most of our tenants stay for around 3 years.  We normally do a rent increase when tenants change out.  Yes it is a business but it is a people business.  Some might say that we are losing potential income each year.  Perhaps.  But if I get lousy tenants who trash the place or cause me headaches then that is a higher cost in my opinion than the couple hundred dollars in rent increase.

@Dylan Bard I am currently active duty and have previously used a VA loan to buy my first home about 10 years ago. The VA loan can be a great tool for someone starting out on their first purchase but there are some unique factors that have to be taken into consideration. You must reside in the property that is being purchased. So if you are buying a multi-family then you would live in one of the units. Also, since there is no down payment required the VA adds a special fee. If I remember correctly it was about $5000 on our home which we purchased for $280,000.

I was required to provide documentation showing that I would be employed for at least the next year when I applied for the loan.  I would personally be a little leary of a lender who is trying to skirt around the requirements as it might make for difficulty in closing as @Jared Viernes mentioned.  While you might be able to use future rents as proof of income, that is going to require some extensive documentation from the previous owner.

Best of luck to you.

@Adam Eckerman Most careers in real estate do not require a degree.  Some of the more specialized areas might but most folks in this field come to it with other backgrounds.  If you enjoy your studies and have a passion for it then go ahead and finish it but recognize it may not be directly applicable to your career.  At the same time, a degree in architecture could give you an advantage in understanding structural quality/integrity when analyzing properties.  Best of luck.

@Mark Bascetta - forming an LLC is definitely a smart move. It helps to protect your (and your father's) personal assets in the event that a tenant sues for some reason. LLC means limited liability corporation. So it literally limits the liability to the specific asset(s) held within the LLC. SO if someone were to have an accident on the property or sue you for some reason then they can't come after your personal house, car, etc but only properties held in the LLC. My partners and I set up an LLC to hold our investment properties. Get some advice from a tax professional because there are some different rules for taxes with an LLC but it is a smart move if you intend to professionalize your business. Best of luck.