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Active Duty Passive Income Blog

Our military oriented real estate investing blog.

 

 

How to Earn Residual Income in the Military

Aug 16, 2018

 

THE WHY.

Save More, Spend Less? Nope!

Before we talk about residual income, I would like to start by telling you a quick little story...

Years ago, I remember deciding, that I did not want my wife to feel like she "had to" go to work if she didn’t want to.

Then, thinking it was my only option, I tried to figure out how I would cut down our family expenses if we had a baby. After all, I wanted to start saving for his or her college.

This meant living more frugally.  

It meant cutting down our expenses and saving more.

I quickly realized that my future day-to-day lifestyle would most likely struggle.

Wait!

Don't forget saving for retirement! My wife and I wanted to make sure we could tell all the other military families that we had a solid TSP and Roth IRA for our future old-selves. We didn't want to seem financially uneducated.

But something did not feel right. My thought process seemed counterintuitive and it was forcing some difficult conversations between my...

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Enjoying My Passive Income from Real Estate Investing

Jun 20, 2018

Last week I was travelling across Europe with my wife and kids flying first class from country to country. We went from Germany where we spent time getting served by folks in lederhosen and over to Scotland where I went to a few Scotch distilleries testing some various choice Highlands and Speysides… what an amazing trip! We passed through Paris and took a helicopter tour of the city and had an amazing view of the Eifel Tower. We went to Poland and visited Auschwitz (amazing!) where my 8-year-old son asked, “what happened here, daddy?” Right then I knew we needed to continue travelling the world and showing our kids what really matters in life: time with your family while learning and experiencing the world while sharing the blessings we have with as many people as we can.

Now, I have a confession, I didn't actually make that trip… last week I was stuck working a lot of hours on a TDY away from my family. I worked about 95 hours and I barely even talked to...

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How Rental Real Estate Can Pay for Your Child's College Tuition

Jan 29, 2018

Going to college is extremely expensive these days.

In general, having children is an expensive 18+ years. It is something my wife and I are about to face with complete joy and overwhelming anxiety. Once senior year rolls around, most parents have to figure out a way to pay a massive college tuition bill, not to mention many other expenses that come along with sending a young adult off into the real world. After all, your college student is going to want to have some spending money in their pocket. 

Rather than telling them to find a part-time job, which will most likely hurt their extracurricular activities, study time, and social life, why not invest in their future early on? Help them be smart about money and give them a legacy of financial freedom and literacy. 

Here is what you do: In the year that you have a baby, buy him or her a turnkey investment property with a 30-year loan. Have any cash flow go directly towards the principal. If you do this...

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The 5 Red Flags From My First Turn-Key Real Estate Investment Failure

Sep 01, 2017

I learned a painful but crucial lesson from my first shot at Real Estate Investing.

After I learned the basics of Real Estate Investing, I thought I was ready to jump right into a deal. I got ahold of a turn-key provider and immediately started looking at deals. The only kind of analysis I did was subtract the mortgage from the rent and tried to see if that made any sense.

By the way, a turn-key investment property is simply a fully renovated, tenanted, managed, and ready to go investment.

Red Flag #1: Communication with the turn-key provider was terrible. They didn't seem to have their shit together and they dragged out every step.

Red Flag #2: They wanted me to buy with cash only. The reason this is a problem, especially since I was NOT able to see the property, is because a cash purchase would not require any inspections or appraisals. Therefore, I would never really know if my property was actually worth what I was planning on paying for it.

Red Flag #3: The purchase contract...

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Veterans Make Millions from the VA Home Loan

Aug 28, 2017

Today I would like to focus on the VA Home Loan and how you can maximize this benefit to make yourself a multi-millionaire! This is a process I have done and know from experience that it works! I have outlined the process in detail below so that you may also become rich!

It is good to read a book like Larry Loftis book here to establish an understanding in residential real estate investing. This book has helped me tremendously.

Every Combat Veteran has the benefit of $417,000 (there is a slight fluctuation based on the where you live) in home buying power backed by the Government. The VA Home Loan allows you to purchase Real Estate with $0 out of pocket and negates the expense of mortgage insurance.

Now, I like to make as much money as possible with as little time and effort as possible and one way to do that is with other people’s money. In this case the governments. Now your job is to MAX OUT YOUR BENEFIT so that the total value of the VA Home Loan is working FOR you.

Some...

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The 3 Reasons to Own Rental Properties Within an LLC

Jun 25, 2017

If you want to be a military real estate investor, you need to protect yourself. Most people never think about investing within an Limited Liability Company (LLC). Years ago, I definitely thought it was not necessary. In my imagination, it was an incredibly difficult process that was something that only big companies had to do. This is simply not true. 

LLCs are a fairly new legal business entity created in Wyoming in 1977. The unique aspect of an LLC is that it provides a combination of liability protection and also acts as a “pass through entity” for tax purposes. It is the perfect entity for real estate investing.

LLCs have exploded in popularity since their beginning and are the new standard for Real Estate investing.

The three big reasons for owning a rental property within an LLC are: Tax Benefits, Privacy, and Liability Protection.

Tax Benefits:

This is one of the biggest reasons why Real Estate Investing is such an incredible wealth builder.

When properly...

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The 5 Reasons Why Real Estate is the Best Wealth-Builder for Members of the Military

May 22, 2017

Military Real Estate Investing – The 5 Reasons Why Real Estate is the Best Wealth-Builder for Members of the Military

 

Real Estate Investing in the United States is magic. Investors from other countries often disregard any additional resulting taxes and invest in our real estate market. It boggles their mind that our system is so profitable. If you or your parents were caught up in the 2008 crash, you are probably on edge about real estate and that is completely understandable. However, all it takes is arming yourself with knowledge of the system to be ready to capitalize on the next market crash instead of simply surviving or even drowning amidst all the hysteria.

There are FIVE specific aspects of real estate that show why it is a fantastic way to build wealth. Each aspect is reason enough to take the plunge, but when properly combined, the results cannot be overlooked.

  • Leverage
    • This term is thrown around so often, it has almost become a buzz word. The problem with...
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