Getting into real estate in any form is a great way to build up solid passive income. Two great ways to get exposure to this sector are rental properties and Real Estate Investment Trusts (REITs). For definitions of many terms I use in this article, please check out https://beginnerstockinvesting.com/2020/03/19/the-basic-definitions-of-stock-investing/.
A REIT is a company that finances, owns, or operates income-producing properties and is publicly traded on the stock market. These companies can operate in any real estate sector including hotels, single residences, apartment buildings, theme parks, commercial, federal, retail centers, warehouses, data centers, cell towers, medical facilities, etc.
The cool thing about REITs is they're required by law to pay 90% of their profits back to the shareholders in the form of dividends. If you're familiar with dividends, these REITs usually pay a higher yield than...
You may be wondering if it’s possible to buy a second home with a VA Loan. If you’re looking to use it as an investment property or vacation home---the answer is no. This is because the VA requires borrowers to occupy the home to qualify for a VA loan. But what if selling your first home is not possible and you need to purchase at your new duty station. How does that work?
The VA Loan program features a “second-tier entitlement” or “bonus entitlement” for exactly this reason. You can’t buy a vacation home with your VA benefits, but you may be able to buy a second primary residence. To be able to qualify for another VA loan, you are required to live in the new residence for at least a year. In most cases, you’ll need to be moving to a new duty station, but there are exceptions—as long as you can prove a “net tangible benefit”:
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!
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...
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...
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
• Installment Contracts
• Credit Card Interest Rates
• Automobile Leases
• Mortgage Interest Rates
• Mortgage Foreclosure
• Civil Judicial Proceedings
• Income Tax Payments
• Small Business Owner Protections
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...
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....
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...