Anyone In The Military Starting In REI?
I am stationed in Hawaii, but will be moving this summer. Hopefully either Tampa or Utah. Anyways, is it hard for military members to do this? I want to start this summer after we move. Any info would be great. Thanks.
By the way, I am in the Air Force and should be getting promoted to Major this winter! 
Congrats on the upcoming promotion! Glad to hear it. I have associates who are in the military, they just have to juggle things a bit different. I was in the Army, but that was a few years ago. I am however in a regular job for the time being, until I get my CREI going enought to make the move to fulltime investing. It can be done, you must manage your time wisely. As you are already aware! Good luck.
mdbennes,
Glad to meet you.
I see by your next promotion that you will be equal to a Marine Corps Corporal.
Never the less you are in a perfect position as such, I was fortunate enough to help many people at Nellis Air Force Base, that needed a quick sale of their property.
The military personnel will always run real estate paperwork by the JAG office. I know because the JAG officer in the JAG office new me by my first name. As a matter of fact when she was tranferred rather quickly to Washington DC, she called me and I purchased her house the Subject To way.
Funny thing she did not need to run my paperwork by the JAG office.
Yes, you can do creative real estate investing in the service very easily, your credibility will stand out in front of sellers.
John $Cash$ Locke
Thanks for the info. I figure it would be easier to do once I move this summer. We are ready to leave Hawaii if you can believe that.
What do you look to get out of rent as a fair profit? Basically to cover all expenses etc. I was wondering if there is a rule of thumb or what to charge rent over the mortgage payment and still have good cash flow? THANKS FOR ANY INFO YOU CAN PROVIDE A NEWBIE!
mdbennes,
I know what you mean about ready to leave Hawaii....I spent 3 years at Schofield Barracks actually at the Helemano Military Reservation off of 99 Kam Highway and I know the feeling...I got tired of the North Shore living. I lived in Haleiwa on the beach. SOme folks cant understand that, till the live it in the military!! Look forward to talking to you in the future and seeing ho wyou are coming along with your CREI!
Thanks PEJAMES....EXACTLY! Anyone know what amount above a mortgage is good for CASH FLOW? Basically percentage?
I am a SFC/E7 in the Army. I have had a CRE business for some time now. I can tell you from my experience the first thing you should do is purchase a course from an expert who someone you know has used and endorses. I have used two. Claude Diamond specializes in Lease Purchases. His products cost about the same as most $200-$500 but he will personnaly mentor you for a price that is well worth your cost. I made it back in the first two months in one deal. The other I endorse is Ron Legrand. He teaches wholesales, retails, owner finance and lease purchases in one program. Since you are in the military and never know when you are going to move again or what ever. I suggest you become an expert in Whole sales and retails becuase you can flip them and be done with it. If you do move you do not have to worry about leaveing a problem behind. I have done Lease purhcases but I assigned the contracts on most. I do have one left with a tenant in it that I made $3000 up front on and $250 a month for the last 10 months. The lease is up in June which works out because I will be goin to Saudi for a year in June.
Good luck
Wally
Sir, I am in the USAF and have been studying REI for about a year and a half. I have my first 4plex offer on the table to close March 31, and I used my VA certifercate to get a construction loan and partnered with a contractor to build a home that I will sell, I'll pay his $10k fee and profit from the remaining $15-18k before taxes. If I use the profit to reinvest then there's no taxes. ***(YOU STILL CAN BUY A RESIDENTIAL HOME EVEN IF YOU HAVE USED YOUR VA)*** So if your wife would wonder where or how will you all get a home it's still possible. Mine grilled me pretty good. A good mortgage broker will greatly help. Here's just an idea from my veiwpoint. I would try it but my family is too big. Just a thought for your first venture could be buying an upscale duplex that meets your family requirements, occupying one side and renting out the other this should leave a decent portion of your BAH available. After a few months or a year (moving isn't popular I know)advertise it for rent and move into a home and you have your first full fledge investment property. Duplexes should be easier to finance, especially as owner occupied. You may or may not go this route but it is just a thought. I do a lot of calling from the job and often have to leave early to research due diligence on property, and contacting many of the RE professionals about different aspects of buying and selling. Hope something helped.
Thanks WALLY for the info. That is great stuff and congrats on doing so well with it. Good luck to you in your next trip to the sand box. I almost got hit with an IRAQ trip, but looks like they are leaving me alone since I am PCSing this summer.
I might be emailing you some more on how you go about leasing and wholesaling. Hope you don't mind me picking your brain. The good thing is my wife's aunt and uncle own a lot of houses in Oklahoma and I have started to ask her questions as well.
I think you are right about flipping since I am in the military, it would be easier to do. But it would be great to do this enough to GET OUT, don't ya think? Thanks again Wally and salute you for your service!!
mb
Thanks Jminor for the information. Glad to see fellow military brotheren showing me the ins and outs. I might be in contact with you just to get some more info. I have a good friend who is stationed at Robins AFB. Lt Col Michael Neeley. Great guy but is retiring in June....
Hello mdbennes,
It is refreshing to see that there are those in uniform involved in REI. I recently transitioned into the active (USAF) reserves back in 2002 and recently became an investor myself (just received my LLC paperwork from the State yesterday!).
I honestly don't understand why more of us that are in the military are doing REI. In my opinion, there are always a multitude of motivated sellers around military bases, especially in the officer corps (relocations every 2-3 years). Since am now located in MI and perform my reserve duty in OH, there is no easy way for me to take advantage of that opportunity. However, for those investors that are near military bases, I'd have to think there would be more than enough deals to profit from.
BTW, I did a tour at Robins AFB with the '5th MOB'. My wife and I always talked about how much potential that area had regarding development (especially the restaurant business). I know this is a bit off topic, but no matter what day of the week it was, every restaurant parking lot near the mall was packed during dinnertime. We plan on opening a restaurant (BD's Mongolian BBQ) if we ever had the opportunity. That restaurant would do terrific in that market.
But I digress... That's my $0.02 for what it's worth.
Happy investing Major, and congrats on the promotion. I have about four more years until I meet my Major's board. The plan is to be well on my way as a REI by then.
thank you for that information. I always thought it would be good to be in the military and also REI. You are always going to different locations and can get some ideas where the market is. I have some friends of mine that are stationed there in Robins and I might have to ask them to look around. I am either going to Utah or Florida in June.
Thanks for the encouraging words and appreciate your service to your country as well!
Welcome to the ranks of the un-uniformed. I am the living example of what an early military life can prepare you for. But then I have always been attracted to dirt.
I bought my first apartment house in Paris it was 1941. I was awol from Stalag 2. Yes I was in the RAF flying Spits as a Fighter Pilot, obviously not too succesfull. But that nine unit on Ave Hoche was the Best investment I ever made. I never equaled it. Fun recording the deed two Gestapo agents standing behind the Recorder of Deeds. I smiled a lot.
I also bought a small house with a thatch roof in Safron Walden in Kent. I was at that time in the Eagle Squadron waiting for the United States to get its courage up and join the fray.
My next purchase was up on Aka Bushi two stations from Tokyo General. I bought that just as the war ended. nice 30 mat house. Shibui.
Well some time latter I am at Mountain Home AFB in Idaho. General was bitching about no housing for the first three graders. Soo I built 300 houses and then sold them to Staffs Techs and Master. Korean war broke out. They all left and I bought them all back for their downpayments $100 a piece. Now I rented them all out to incoming Officers newly returned to active duty. One of the newly arrived was late on his rent. I went
to collect. Yes, it was the new commanding officer. Wanted to see me in his office. Declared me surplus to the base and away I went to Korea. I doubled his rent prior to leaving.
So here I am playing around over the Yalu in an F-86. and the rents are accumulating back in Boise. Hard to enjoy money while Migs are being hostile. I developed a taste for Kimchi, rice and dried fish heads.
I get a letter from my Broker. I can now sell all of these little houses for $9,000 a piece. Only owing $3,400 on average. I sold them. all 300. Guess who bought them right on the Broker, he dumped them about a month latter for $12,000 a piece. Ah these civilians you just cannot trust them.
So when I returned to Civilian life in 1954 I had a little experience in Real Estate.
Civilian life has been good. The incoming is scattered and usualy on the Freeway so they miss a lot. If someone says "Check Six" I don't panick. I never again have to work for highly unqualified persons whose claim to fame was that they went to some trade school. Being a double winger ex RAF it was not always fun.
But this is. You deal with all sorts of persons, you do not have to stand to attention and the food is much improved. I resigned the day I got a star and if I had it all to do over again. My decision would still be the same. After all my next job was as a Janitor. I owe it all to my service career. Yes the perfect preparation to be a janitor was the star. Just could not get those toilets to line up properly.
My time is Vietnam in 1954 was truly an education. I learned all the things that a Colonial nation should not do and by having Uncle Ho as a friend I realized that no outside nation can intrude into a peoples war and win.
So relax, learn a few simple rules. Might start off with the Golden One. It works.
Cheers Lucius
Great story.....What is Golden One???
Congrats on your promotion. I'm a navy officer that started 6 months ago - have 4 properties and moving right along. Funny - I started after my move from Hawaii. PM me if you want some advice or info..etc
Thanks Hoober....where did you go after Hawaii? Are your properties rentals? How are you doing CASH FLOW wise? Thats what Im looking at when I leave in June...
Got stationed in Norfolk. I have 3 duplexes and one 4-plex all rentals. I have a cashflow of about 1800/month (after taxes/insur/repair) - this also takes into account PM fees. I feel I have made a few good deals - great market here.
That is some nice spending cash on the side. I hope I can find something like that....Is it much easier to have a PM take care of those things while still in the miltary? Have you thought about getting out at all?
Not spending a dime of that money...all gets reinvested in stocks or other RE. I'm a career guy will be up for O-5 in a year or two - will retire and then do RE full time. A PM frees me up to other things - find more REI or have fun. Plus, as you know, operational commitments tends to have its ups and downs.
That is awesome and thats what I hope to do once I move from Hawaii. Would you mind me asking you questions via email sometime? How hard was it to find your duplexes and lending as well?
Send me a private email and I will answers your questions. I certainly don't have all the answers (learning all the time) but I might save you some headaches I had in the beginning.
That would be great if it doesn't bother you too much. Thanks again for the info and help in the future.
Quote:
On 2004-03-03 19:46, mdbennes wrote:
Great story.....What is Golden One???
"Do unto others as you would have them do unto you"
Hey sir,
Try investing with a Cpl's salary. Congrats on getting started though. I am still working on it cause money gets a little tight around here. Mr. Locke is a great mentor if you care to purchase his course. He has helped me out a lot! I am going to close on my own residence tomorrow and hopefully my first rental on sunday. Buying both the Sub to way as John has taught me. It is really tough trying to balance mitlitary life and REI. I am going back to the dirt this fall for the lovely 2nd tour of Iraq but all is well because I am training my wife to take care of any rentals I have while I am gone. As far as how much you should expect cashflow wise you have to determine that yourself sir. To many variables. I tell you, however, that I am perfectly happy with $100 a month from a property if it is in good running conditon.
Have a good one sir and good luck.
Jim
No bother at all.