Any Military People Who Do REI?

I am looking into investing in RE, and wondered if any military members on this forum that can relate to me. I have been in the Air Force for almost 11 years and I am from the panhandle of Florida. I plan to look at investing in that area. I am also contemplating getting out, but when I pin on Major in February, that will be a big pay raise.

I found a house a friend of mine is selling. He told me that his renters were offered to buy it, but its been a while and they still haven't purchased it. I asked him how much and he said $110K for a 1993 model, 1900 square feet, 3 BR, 2 BA. The comps on his street were around $155K...How can I try to get him to accept my offer over his renters?

Thanks for any advice and I have been reading this forum for a long time; great information! Any other military members out there....I SALUTE YOU!

Comments(35)

  • mdbennes13rd January, 2005

    Anyone else out there that can help me with this deal? Thanks...

  • JohnLocke3rd January, 2005

    mdbennes1,

    Glad to meet you.

    Although as a Marine I served my country in a different era, I do have students who are currently in the military so if this qualifies, how do you want to purchase this property creatively or conventionally?

    John $Cash$ Locke
    [addsig]

  • ddstew3rd January, 2005

    I am active duty military and own rental property. The moving makes it challenging, but a good property manager can make it less stressful. I have talked with many military members who will buy at each assignment and rent out after they move. At the end of 20 years, you could essentially have 5-10 houses across the country, and some nearing payoff. So, bottom line, if you really want to invest you can!

    ddstew

  • monopoly3rd January, 2005

    Hello there, I'm in the Air Force myself, Did 4 in the Army and been in the AF for 3. The Air Force Shaping program has allowed me to get out a year early, I'm out of here in two weeks. I'm going into REI full time. I had two rentals in Indiana while stationed in Vandenberg. If you have good tenants managing won't be a problem. I think it's good to have the prop in one area if you're doing out of state investments.

    How long have you been in?

  • ddstew3rd January, 2005

    At/near retirement from the Air Force now. Looking for my next venture too! Where are you going to invest? Cal, Ind, or somewhere else?

    ddstew

  • monopoly3rd January, 2005

    Quote:
    On 2005-01-03 13:41, ddstew wrote:
    At/near retirement from the Air Force now. Looking for my next venture too! Where are you going to invest? Cal, Ind, or somewhere else?

    ddstew


    Retirement is great, congrats to you and thanks for your many years of service. One of the best parts are you're still young. I'm going to invest in Indiana.

  • ddstew3rd January, 2005

    My plan is to invest more in real estate between now and the time I retire from the military. As for work other than that, still trying to figure out what I want to be when I grow up!!!

    ddstew

  • mdbennes13rd January, 2005

    John, I think I'm going to do it conventionally, not sure what you mean by creatively?

    I have been in for almost 11 years and pin on Major on 1 Feb 05! Can't wait.....

    I am just starting, but learing a lot from all of you....Does my deal sound good at the top of this thread? Thanks.

  • Mrwal93rd January, 2005

    I too am in the millitary, I am currently deployed in Baghdad Iraq. It's nice to no other service members are into REI! I'm a novice investor out of Jacksonville Fl. I really don't know what to tell you as far as your deal, but I can tell you this!! When I leave this place I am going to poor my heart and soul into my goals in REI. If I knew what I no now, I wouldn't be here! Thats not to sound like I'm not proud to serve, but my family has had a hard time dealing with me being gone all year! Not to mention, I volenteered! Still, knowing other service members are out there on the grind in REI has motivated me to persue my dreams! I can't wait to get home and drive around, look for properties, walk throughs, talk to sellers and people in the game! Being here has made me see the things I miss the most! Good luck in your ventures!

  • JeffRicardCapeCod3rd January, 2005

    Hey all... former Marine... novice investor too My wife and I are looking at moving to a warmer climate and one of the areas we're looking at is the panhandle can you offer your opinion of the area?

  • mdbennes13rd January, 2005

    Panhandle is booming with real estate. I am from there originally and plan to buy down there soon. Pensacola was hit really bad with the hurricanes this year and there are some good rehabs. My father lives there and I hope to use him for rehabbing....

    Hope you have a safe return from the desert...

  • ddstew4th January, 2005

    I lived in the DC area, then on the panhandle of Florida until 2003. The DC area, is still a hot market, but the rents are not keeping pace with property values. The panhandle region was undervalued and has surged in prices over the last four years. To predict what will happen is hard, but I have seen houses go from low $100's to low $200's between 2000 and 2005. With that, the rental market is strong. Of course the DC area prices went from low $100's to nearly $300k. I say all of that to encourage investment in real estate, as I believe it will continue to make gains for those investing in it. Each area is different, so learn your market, talk to folks, then implement a plan that works for you and the market you are in!

    Best wishes to all in 2005!

  • ddstew4th January, 2005

    To encourage you a little more, read the following article...
    http://money.cnn.com/2004/06/22/real_estate/investment_prop/tycoon_becherer/index.htm

    ddstew

  • mdbennes14th January, 2005

    That is a great article. I kick myself for not buying real estate in Hawaii when I lived there from 2001-2004

  • ddstew4th January, 2005

    Don't kick yourself! Look forward and take it as a lesson. I could have kept all my houses, but didn't. They would have all returned a nice sum. Instead, I focused my investment and it paid off ultimately. Would I have made more money by keeping each and renting, yes, but may have had headaches for my wife while I was deployed, etc. Now is the time for me...can't think about mistakes in the past, but look at my plan for the future. Just looked at 5 properties over my lunch hour and now trying to decide on which to invest in NOW...

    ddstew

  • mdbennes14th January, 2005

    I am just trying to figure out what I should do with the house I mentioned above in the first part of this thread. I would like to hold it for a couple years and use the cash flow with renters to help pay for the mortgage and watch it appreciate.

  • ddstew5th January, 2005

    If friend is selling for $45k under FMV, find out why. Do a little more research, check all the numbers, and you will need to determine if it is right for you. We can make comments and suggestions, but the house and tenant will be yours. Real estate investing can be done from across the country and while in the military. Personally, I would find out more facts, visit the property, and look at similar houses currently for sale. Also get the comps on rentals. I am an hour away, so could possible help.

  • mdbennes15th January, 2005

    I have a friend who is looking at it. The problem is getting him to sell it to me, since he said his renters were going to buy it, but thats been a while now.

    Where in Mobile are you? I graduated from USA in 94

  • ddstew5th January, 2005

    Teach at USA! Great military assignment...makes up for some of the bad assignments and stuff I've been through.

  • mdbennes15th January, 2005

    Air Force ROTC? Thats where I got my commission..'

    How much advantage do I have if I am able to get on the MLS in the panhandle area for investing? Thanks.

  • mdbennes15th January, 2005

    Air Force ROTC? Thats where I got my commission..'

    How much advantage do I have if I am able to get on the MLS in the panhandle area for investing? Thanks.

  • ddstew5th January, 2005

    Yes, AFROTC. I commissioned from USM in 91. I use www.realtor.com for current listings and the local county records for past sales. Is that what you were asking?

  • kenmax5th January, 2005

    conventional is aquiring the prop. " the conventional" way or bank fin. - creative fin is aquiring the prop. through "creative' fin. methods - owner fin., subject to, lease/ options are examples..........km

  • ranel115th January, 2005

    Hey ! My husband is a retired marine and we have played monopoly!!!we are currently in Coastal Georgia where the market is booming!!!! I am a realtor and investors from California and all over are discovering this is the place to invest.... please contact me if you have any questions for positive cash flow and appreciation(we are near a sub base and a navy base bordering the Florida border its a hot market !! : ) hope this helps .. Ranel Van Deraa R.N.,Realtor,Retired Marine WIfe. www.ranel4homes.com

  • mdbennes15th January, 2005

    Thanks Ken for that info...makes more sense.

    DD...I can actually go into the MLS here...I got it from a friend of mine. Basically what the realtors use.

    Ranel...please send me as much info electronically as you can regarding that area...my email is **Please See My Profile** Thanks.

  • mdbennes16th January, 2005

    What lenders do you all use for financing investment property?

  • ddstew8th January, 2005

    Find a few with a good to great rates and someone you can develop a long term business relationship. It doesn't have to be local to you or the property. I have three local and two out of town, that are ready and willing to bid for my business.

  • mdbennes18th January, 2005

    Thanks DD...great info.

    Can you recommend some to me? Thanks

  • InActive_Account8th January, 2005

    Even if you are AF (just kidding), I would be willing to share my experiences. Believed you sent a PM to me early last year. I'm AD Navy 04 and have purchased several investment properties over the past year and a half (almost a million worth - blows me away too).

    As for your situation. Offer more and have a pre approved letter, financing, and all you ducks in a row - speed is key. Sounds simple, but in todays market it is unwize to squable over a few thousand - someone will out bid you and it's gone. I believe the comps are acurate, as I'm familiar with that area (PM me and maybe work together on future deals). Another critical question you need to ask is what will the cash flow be?? Don't over bid and leave yourself paying out of pocket. Again send me a quick PM and we can talk.

  • ddstew9th January, 2005

    Local, I have a mortgage co and two banks, but they may not be able to help you, since they deal with properties located here. As far as ones that will handle nearly anywhere, Wells Fargo, USAA, and Pentagon Federal should be able to assist. At times they have deals with great rates and no closing costs on a first mortgage.

  • mdbennes19th January, 2005

    This will be my second mortgage...I have a house here in Utah, just curious what lenders out there help people with investment property mortgages...

  • mdbennes114th January, 2005

    Thanks Hoober for the info

  • pejames14th January, 2005

    Try the yellow pages in your area. It might be faster and you will be able to talk to them right then. All you can do is ask and all they can say is yes or no.
    Good luck

  • giak112814th January, 2005

    Thanks.

  • JohnMichael14th January, 2005

    giak1128

    If you are looking for a realtor, posting advertising really is not the way to go!

    Get out there and network! Go to www.realtor.com, newspaper, your state web page and the list goes on.

    Realtors make money by way of commission! How do you plan to pay them for their time?
    [addsig]

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