Our military oriented real estate investing blog.
The current Coronavirus pandemic leaves a lot of questions about the effect on the real estate market. But, one common opinion is that multi-family investing can offer a reprieve from economic disturbance for real estate investors. The reason is that multi-family properties offer less risk due to having more than one unit.
What most people don’t know—is that you can purchase multi-family properties with a VA Loan. It’s an incredible opportunity for seasoned investors or even first-time homebuyers, so make sure you don’t pass it up!
When you’re researching properties to purchase, know your costs! Your mortgage payments include principal, interest, taxes, and insurance, but that’s not all you need to consider. It’s important to also include factors like utilities, estimated maintenance costs, vacancy, capital expenses, and property management. Having more than one unit means an increase in all of these!
You need to know...
Financial freedom means having enough investments, savings, and cash to go through life without stress about your financial situation.
Financial freedom allows you to afford the lifestyle you want for yourself and your family. It allows you to minimize the time you spend working as much as you want without minimizing your earning potential. You’ll be able to retire earlier and turn to your hobbies and professional passions without the fear that you’ll live out your old age struggling to make ends meet.
And, most importantly, it allows you to earn enough money to invest into real estate — a move which can help you establish a regular passive income to help you sustain and enjoy your financial freedom in the years to come.
So, financial freedom is something worth aiming for.
But, how do you achieve it?
Well, by making several finance-related goals in your life, and then pursuing them.
I wanted to take some time to emphasize some very important aspects of investing in real estate. Some may already know this, some may be confused by this and others may not even know about the topics I’ll discuss.
TABLE OF CONTENTS
1) Exclude sale of home
2) Unrecaptured §1250 Gains
3) Active participation for passive losses
4) Understanding Depreciation versus tax losses
5) Real estate pro
1) You may be able to exclude the sale of your primary residence IF you meet the following criteria:
a) You reside in the property for AT LEAST two of the most recent 5 years.
b) You own the property during your residency.
IF you are on qualified official extended duty (deployment, PCS, TDY, etc) the period can be extended up to 15 years.
NOTES— You must be on qualified official extended duty for the suspension to matter. For example, if you ETS, you’re no longer on qualified official extended duty. You can exclude UP TO $250,000 ($500,000 if you’re married filing jointly)....
I wanted to share my real estate journey in hopes that it can help our community. The struggles, mistakes, personal growth, failures, and successes have challenged me in many ways in the past several years.
In the beginning, I joined the Navy 11 days after 9/11 at the age of 17--my mom had to sign my contract. I then served with 3rd Bn 4th Mar, India Company as a Navy Corpsman and served two tours in Fallujah, Iraq. I later transferred to Rota, Spain and worked in the emergency room for three years. After that, I started to lose passion for medical and began focusing on finance. I then left active duty in 2009 to go to study finance. It was the worst time to get out of the military due to the job market, yet thanks to my mom, I was able to buy what I could afford in South Central Los Angeles when home prices were very low in 2010.
I joined the Navy Reserves and struggled so much financially. During that time, I was introduced to personal development books such as "Rich...
There are many reasons why you would want to stick to a familiar real estate market. Investing in your state or country is a good way to keep your assets close to you so you can manage them easily. What’s more, is that you’re able to learn about the market faster, discover lucrative opportunities quickly, and use the advantage of operating within a familiar legal system to make good long-term business decisions. Still, the allure of the international real estate market should not pass you by.
In the modern real estate world, success stories are built by diversifying your portfolio, not only by the asset class but also the geographical location of your assets. Imagine all of the lucrative opportunities that await in emerging economies around the world-- particularly those that are undergoing rapid urbanization. With all of that in mind, let’s take a look at the best tips that will help you expand your real estate portfolio into international markets.
With the upcoming PCS season, many military members and their families will be preparing to put their homes on the rental market. Whether it’s for investment purposes or just because it’s not a good time to sell, you can use these tips to help you get ready!
If possible, work toward having at least three months of expenses saved up. This includes mortgage, maintenance, utilities, etc. This way you have a buffer if the home stays vacant for a bit. You don’t want to struggle if you have to pay for multiple houses for a few months.
In my opinion, to get good at something, you have to become obsessed. I’m talking the Michael Phelps or Tom Bradys of the world. They did not just have a distant inkling to swim or play football. I think everyone will agree with me that both of these gold medal/hall of fame athletes were obsessed with their respective trades. Here is an inspiring quote about Phelps dedication to be the best:
“Phelps trained six hours a day, seven days a week, 365 days a year, for almost two decades. He never once missed a day of practice — not Sundays, not birthdays, nor holidays like Christmas — unless injured. He wanted to be the best and he made it happen through sheer hard work.”
The same rules apply to business and real estate investing. You can not simply go through the motions, dabble in real estate and expect to achieve massive success. In what world is that possible?
As a young boy, I was very independent because my family didn’t have much. I grew up on a small island in the Philippines called Cebu. We were nowhere near the “well off” category. In fact, I remember walking most of the time or taking the cheapest form of public transportation (we call them “Jeepneys”) because I could barely afford a taxi. These were all contributing factors to the beginnings of my ambitions. During those long walks and traffic jams, I always wondered how I could better my life. I realized that it was not money I wanted, but the ability to make a choice and not have to worry about the financial consequences. I wanted a lifestyle that was financially free. Most of the time, I’ve let my wallet dictate my choices--where I want to eat, what food to order, transportation, the clothes I wear, etc. But I believe life is meant to be an exciting journey. I am the only one setting my own limitations and I am capable...
Whether you’re a first-time homebuyer, investor, or looking for your forever home – choosing a real estate agent is an extremely important step in the home buying process. Having a personable, communicative, patient agent can make or break your experience. Interviewing agents can help you narrow down who will be the best fit for you.
Although tenure isn’t the end-all-be-all of choosing an excellent agent, this question can be helpful. You can gauge how you feel about their answer. But, take note – sometimes newer agents can be a great choice! Their motivation and dedication can give them the upper hand.
Lack of communication is the #1 complaint that clients have about their agents. Knowing their schedule and preferred method of contact will help prevent any frustrating communication breakdowns. Make sure you set an...
Are you struggling to make ends meet? Are you already behind on some bills and creditors are harassing you? Are you facing foreclosure or car repossession?
You are not alone. Many people just like you have fallen on hard times because of divorce, medical catastrophe, job loss, or simply not having enough income to meet current expenses. Active-duty servicemembers and veterans are not immune to these problems--a recent study showed that 1 in 10 military families file bankruptcy.
There are pros and cons to filing bankruptcy for anyone, but there are special considerations for those who served or are serving in the military. Read on to find out your options and decide what is best for you and your family.
If you simply have too much unsecured debt--such as credit card debt or medical debt--filing under Chapter 7 is for you. Chapter 7 bankruptcy is a four-to-six month process during which you disclose...