All Forum Posts by: Seth Hayes

I think a podcast and forum is a great idea. I remember my first exposure to the power of real estate investing, while in the military came when I was stationed in Alaska.

We had several people that were buying 4-plexes and doing well. However, another colleague of mine, was on his second tour at that duty station. He was an A1C the first time he was stationed there and bought a house at that time. He PCS but kept the house as a rental. 10 years later, he got stationed back at his first duty location because the number of bases that supported his AFSC/MOS were limited, meaning it was basically an eventuality that he'd make it back there. 

He rented at his other duty stations, but always found rental properties cheap enough to bank some of his BAQ, which he used for reserves on his home in Alaska. He also rolled the rental money back into the mortgage, so it was completely paid off when he returned 10 years later. He continued to receive BAQ upon his return and used that money to purchase a 4-plex that generated significant cashflow. 

Seeing his success planted a seed in me that would help encourage me to start investing in real estate myself. Anything that you can do to help struggling military members achieve lasting financial success and stability is a good thing. 

Bryan,

A mortgage broker can help you meet your funding goals with no regard to your location. Much of what we do can be hashed out online or via phone or email. 

HELOC or cash out refis are all options available to you. You simply need to determine which one is right for you based upon your short term and long term goals. Once you've figured that out, you simply have to decide which lending program provides you with your desired outcome with minimal impact at closing.

So while a local small bank may be able to provide you with the best terms, you may be limiting your options and ability by not being physically local to the property. Mortgage brokers should be able to provide you with more options since they can open you up to nationwide lenders.

David,

You don't have to let geography limit you in the formation of your team. While it makes sense to have your title company, real estate agent, and attorney be relatively local, your insurance agents or commercial mortgage broker/funding sources do not necessarily need to be local, providing they are authorized to operate in Florida.

We have several clients that we work with outside of Ohio because the lending institutions we work with are willing and able to lend all around the country. So while our offices are in Ohio, we are able to manage all of our business online or via phone/teleconference/video conference.

A mortgage broker is also an avenue you can pursue since they work with multiple funding sources and are familiar with their lending requirements. It saves you the time and hassle of calling 100 lenders, getting 10 minutes into the conversation before they tell you that they can't help you. 

A broker can sit down with you, hear your background, current situation, and what your plans are, then put you together with a lender that will be happy to work with you. 

If you have a decent equity position on your rentals (70% or better), and a passable credit score (640 or better), you can get a commercial loan on each individual property or in a blanket loan with a 20 to 30 year term in the mid to upper 5% range. 

If local banks are unable to help you, work with a commercial mortgage broker to find the funding as they have access to a bigger pool of lending institutions.

@Kyle Foster. My first exposure to real estate investing came when I became an accidental landlord. I needed a bigger house to accommodate my expanding family but could not sell my smaller home without a loss. I rented it out with much success and started to expand my rental holdings from there. 

I've had good experiences and bad experiences in my real estate investing over the years. A good network is key to avoiding or at least minimizing the bad experiences.

Seth