Multifamily Deal Walkthrough

In a previous blog, How I House Hacked Into Multifamily, I announced that we’re under contract on a 55-unit multifamily (MF) deal in Spartanburg, SC. A few have asked about the process of purchasing multifamily properties from beginning to end, so here’s my path from beginning to present. I’ll note that a few months ago, I teamed up with a like-minded partner that I met through a forum similar to ADPI, and it’s been extremely beneficial. Multifamily begins and ends as a TEAM SPORT!

 Multifamily Deal Tips

Tip 1: Commitment 

Upfront, a key step in the process is actually committing to make MF investing work. I will retire in 2021 and am not making any other plans for a j-o-b afterward.  No plan B, just this. I also put some money where my mouth is and took $25k out of my financial freedom account and bought into a mentoring program through the Michael Blank network. Finally, to get the...

Real Estate Investor Marketing

Summary: Email may not have the cutting edge, high-tech appeal of some of the other marketing tactics. However, when done right, email marketing for real estate investors can be remarkably effective. To build a productive email campaign, investors should begin by examining the needs of their audience. A broad-based “spray and pray” approach is the quickest way to burn through your hard-earned email list. On the other hand, highly targeted value-add communications will help you build trust, drive referrals, and stay connected to your prospects and clients. Read on for best practices (by email type) and some common email marketing mistakes to avoid.

Recently, I was fortunate enough to participate in a lively discussion with a thought leadership group comprised of forwarding thinking, young marketers. The topic eventually turned to the effectiveness of email marketing for businesses. Although opinions differed greatly on the types of...

What is the Servicemembers' Civil Relief Act?

As an active duty service member, it’s important to know your benefits. One of these important benefits is the Servicemembers' Civil Relief Act. SCRA is a federal law that limits actions against service members while they serve on Active Duty. Some topics that SCRA covers are:

• Rental agreements
• Security Deposits
• Prepaid Rent
• Eviction
• Installment Contracts
• Credit Card Interest Rates
• Automobile Leases
• Mortgage Interest Rates
• Mortgage Foreclosure
• Civil Judicial Proceedings
• Income Tax Payments
• Small Business Owner Protections

 When am I Eligible for the Servicemembers' Civil Relief Act?

Servicemembers’ SCRA benefits start on the date your active duty orders are received and typically ends within 30-90 days after your date of discharge from active duty. If you’re Reserve or National Guard, SCRA only applies when you’re serving on active duty...

How Can You Finance Multi-family Homes with a VA Loan?

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!

Multi-family Homes Research and Analysis

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....

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)....

Dear ADPI,

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...

Why Should You Invest in International Real Estate?

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...

How to Prepare Your Home for Rental

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!

Start with Finances

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.

Do Your Research

• Look up landlord/tenant laws in your state. Even if you use a property manager, knowing and understanding the laws will help prevent lawsuits and help with the process of an eviction (should you need it). The possibility of eviction is not pleasant to think about, but we should always be prepared!
• Read over examples of state-specific leases to see what they include....

3 Ways to Achieve Success in Real Estate

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?  

3 Steps to Achieve Success

1....