Tim Kelly on The Military Millionaire Podcast

Episode 7 | Tim Kelly | Military Millionaire Podcast

00:00 - 05:00


You're listening to the military millionaire podcast, a show about real estate investing for the working class. Stay tuned as we explore ways to help you improve your finances, build wealth through real estate and become a person that is worth knowing.


Hey everybody, it's Dave here with From military to millionaire and I am here with Tim Kelly, who is,so local real estate military celebrity lately been on the BiggerPockets podcast and a couple other big name podcasts.

Tim is a one of the guys who operates with active duty passive income, which we'll talk about later on. It's an awesome program. He is a Chief Petty Officer, the Navy, aviation mechanic by trade, currently stationed in some instructor duty and living the life doing some big time multifamily and mobile home type stuff.

So Tim, why don't you, let’s hear a little bit about you?


Yeah, Dave, thanks a lot for having me, man. It's, it's, uh, it's definitely a pleasure being on your show.

Yeah. Tim Kelly. I'm currently stationed in Pensacola, Florida. Been in the Navy for 13 years. I'm a chief down here. Right now, I got stationed down here to be a water survival instructor due to my rescue summer background. But now I'm teaching pilots about engine systems. I have also engines in my background, and then ethics and personal development and in mindset, even that is what I gravitate into, which is great. I like talking about mindset.

And yeah, so I'm on shore duty, which means I'm not deployable, at least for the next two years. So I'm really harnessing that and focusing all my time on building the businesses, you know, and and so the main thing that we're doing my partners and I are focusing on multifamily deals in the affordable housing space and we're honing in on apartment complexes but even more so mobile home parks, we love that asset type. And we do that through syndication. So we're always looking for partners to provide incredible streams of income to and produce incredible returns. And we're also providing that housing.

And then you know, like, like you mentioned, I'm also part of the active duty passive income team at ATPI. And like I said, we could dig into that we have had a lot of great development and growth on that lately, too. So another super exciting aspect of what I've been working on.


Yeah, absolutely. So kind of curious, I guess my question would be so syndications are not the simplest of real estate deals. In fact, as amazing as they are, I think that kind of scares a lot of people out of them. Just because the syndication is like this scary thought process of putting all this stuff together.

What got you, how did you step your foot in the syndicating over just you know, the traditional buy a house with a VA loan, which is an awesome strategy on its own. But how did you transition into that step?


So, like a lot of people when they when they, you know, discover real estate as an investment tool, I just simply learned just enough about all these different asset types and ways to generate income through real estate, which is obviously most people know wholesaling, and then flipping and then you know, single family rentals and then maybe multi family rentals and then different commercial, different commercial investing.

So I kind of just went very horizontal across all these asset types and just to know enough to make a decision which one I wanted to focus on. And then I chose multifamily because it was the most in line with what I wanted to do.

And you know, so I just specifically honed on multifamily and just wants to super vertical into multifamily and and so, you know, first deal I closed was a four Plex and then the second deal was a 42 unit apartment complex and because all I did was look at multifamily, all I did was read about multifamily listen to podcasts that discuss multifamily. Whenever I want to read or talk to investors, I would specifically talk about multifamily.

So then I was able to hold a you know, a pretty intellectual conversation with brokers about multifamily. And so I then realized that if I wanted to start closing larger deals I'm gonna have to raise capital and that's really what syndication is, it's all about just pooling investors money together in order to close a commercial deal.

So that that's kind of what got me into it because I honed specifically on multifamily. And then I realized syndication was one way to help close those deals.

05:00 - 10:00


Yeah, that's awesome. So one of these days I will hopefully be involved in syndication on some level. I kind of similar or, like bought a duplex bought a 10Plex bought a 40 unit.

But I've kind of done some really weird things I've had, I guess you could say luck with like seller financing and creative financing to where even the 40 units I put like 4.9% down on it. And it was all seller financing. So I've kind of kind of lucked out in the means that I've been able to walk into some of that without syndicating but at the same time and state I think whether I'm hosting the syndication or just throwing my money into syndication, the idea of being able to jump in on a really big project with a bunch of people and just be like, here's my money, I'm gonna go be super passive because other people are running everything.

I mean, even if you're the guy who puts the deal together once it's done if you have good management in place, it's really not from what I would imagine that much of a headache, which is super cool.


Yeah, I mean, that's a testament to how awesome real estate one of the things I love about real estate is that you just use creative means to close deals, you don't have to use a lot of your own money or even other people's money. Obviously, seller financing is just a creative strategy that a lot of people look for.

And the one thing I'll say about that is that sometimes sellers misunderstand buyers, if the buyers like, you know, are you looking for, you know, would you be open to seller financing, a lot of sellers will be like, well, that just means he doesn't have the cash to close or he doesn't have any experience. And sometimes you have to educate the seller on the benefits of seller financing for them, obviously tax purposes and passive income.

But yeah, I mean, that's another thing I love about real estate man, you can creatively get deals done in so many different ways you could structure agreements in so many different ways. And there's not just one way to close the deal with so many different ways to close the deal, which is another, you know, awesome thing about real estate.


Yeah, absolutely.

So you mentioned that the fourplex will kind of backtrack here a little bit, but how did you purchase that when you were one of them, did you VA hack it?


So that was a house hack intention. That was actually I was stationed in virginia beach for like last 10 years and then when I got orders to come to Pensacola down here which about 18 months ago I started building relationships with people in Pensacola and I knew for sure that I wanted to use a an FHA 203k loan at the time, so that's exactly what I did. I found fourPlex here. And you know, I moved down here and within that same month I actually closed on it because I, you know, did all the due diligence but all the offers before I even got stationed here while I was still up in Virginia Beach.

And, and yeah, and so I had the intentions of moving into one unit and running out the other three, and the 2 or 3k alone for a lot of people that do know and if anybody doesn't, it's a rehab loan where you could wrap the cost of rehab into the loan. And for some quick numbers, it was four units that were fully occupied and one of the best neighborhoods for 149k, so I got a really good deal. And then I wrapped $100,000 of rehab costs into that loan.

So the total loan amount was about 250. And then I only had to put down 3.5% of that total loan amount, which is phenomenal. I mean, I'm still wondering why more people are not taking advantage of this. And yeah, it's an owner occupied loan. So you have to have the intention of living, moving into one unit and running out the other. But that's what I leveraged to get that first deal done. And from there, it was just, you know, off to the races.


Yeah, the 203k loan is killer. You know, the VA loan is awesome, but this is probably my biggest issue with the VA loan is and this is not always the case, but it's super dependent on your inspector.

You, It's hard to get somebody like a VA inspector to approve a property that needs work. So the forcing of value add is, it really is hit or miss on your Inspector, right? Some of them might be like, oh, yeah, that's not a big deal. You can fix that. And then some of them are gonna be like, no, no, no, that ceiling fan isn't permitted. So the whole building fails, which we run into out here, whereas the FHA 203k is almost as good a down percentage as the VA. And then you can buy a house that needs all this work, fix it up, and, you know, value add, and I mean, it's just a phenomenal opportunity.

So I agree, I'm torn when I finally leave Hawaii and go somewhere where I can buy a place that will actually cash flow, as opposed like..


I did want to mention that, you know, I didn't end up moving into that FourPlex, because the rehab took a little bit more than FHA required six months in one day. Rehab took about seven months, so I never actually moved into one of the units I was kind of just set up in and we were settled into where we were at.

10:00 - 15:00


And that's what after that I actually used my VA loan and wrapped rehab into the VA loan which I'm currently living in a triplex right now. And it's not a typical triplex, it's as a single family home with a duplex that's completely detached actually facing a different street because it's on a corner lot.

So my home is facing one street, and the duplex is facing the other. So you can't even tell it's all one property. And I wrapped $70,000 into that VA loan. A lot of people don't realize there's a rehab, VA rehab loan available. Only certain banks are offering that. And that solves your problem as you know.


Please note, I'm writing that down.


Yeah, absolutely. It's, and I can give you the contact information for the rehab specialists that actually funded both the 203k loan for me as well as VA rehab loan and that's by far one of the best things, you know, I think is available to the military as a VA loan. But not only that, wrapping rehab costs of that loan, because usually you're right. You know, I mean, the VA loan inspectors are so strict, you know, and they're only looking out for us as the buyers, you know. But if you have a list of looks, I'm going to fix this and this and this and this and this. And, you know, before you even close the deal, you have to have all that planned out. And you have to have the contractor and you go and sign an agreement of how much you know it's going to cost and what they're going to do, and obviously, the bank has to sign off on it because they're wrapping that into the total loan amount. And it wasn't quite zero percent down but it is pretty darn close to zero percent down. I just had to come up with some cash for closing costs and whatnot.

But, I mean, dude, that's why I took advantage of that as quick as I realized that was available.


Yeah, that's a super killer. And again, whether zero or not, it's still no PMI. So it's more cash flow, I kicked myself because I use an FHA on my duplex. And I'm paying PMI. And I did that just because I didn't understand the VA, which is ironically, like, probably one of the better benefits that the military has when it comes to housing and probably the most misunderstood thing.




I mean, I've been having coffee and lunches with VA lenders, you know, just to better my knowledge about it so that I can speak more intelligently about it. And so far to date, you are the first person who's ever even mentioned the rehab variation on the VA loan. And, and I know guys who've gotten some things. I mean, there's a guy out here who, eventually I'm going to get him on the show. That has I mean, he bought like a six unit, Airbnb hotel, VA loan.




Yeah, it's crazy, man. It's like the coolest story I've ever heard. This guy's cash is flowing enough that he and his wife are both about to retire from the military just because they don't use it anymore and were in Hawaii. So they're, I mean, it's killer but that was one of those like, awesome inspector here's all these kind of not loopholes but it was just like zoning everything like the stars aligned not something you could probably duplicate mass scale but that that sounds like something you could so that's awesome.


Yeah for sure.


All right, well hey let's move right along so my one of my favorite questions here is if an E one, E two, or I guess for you guys are all confusing with your rates, I can't even pretend to know the rank because I guess for you to be like AD1. Anyway. For those who don't understand the Navy is the only branch of the service where your job changes the name of your rank. And so like I know foreman and chaplains assistant and that's about it outside of that Petty Officer.

Anyway, if an Eone, Etwo just walks up to you and asks you for some, some financial advice or just advice in general, you only have a minute or two to talk to him. What would you give?


Oh, man, this is so this is just just that the preface this and one of the reasons why I discovered real estate is because I've always had a fascination for personal finance, and just increasing my financial Intelligence.

And that's mainly because it doesn't. There's no education in our society on our school system. And I think that's bogus. And I think everybody should have some kind of basic financial education going through school, in some fashion, whether it's, you know, a little bit in elementary school, more so in middle school, and then even better in high school before you decide to go to college or not.

So, then, you know, they kind of developed after I became a command financial specialist at my last command, and they just put you through a week of the nose quick week of school, and it's really to help you and educate you on how to properly screen military members.

15:00 - 20:00


When they either need a screening or if they want a screening for their own good or because their command is making them get a financial screening due to their financial position.

So a lot of times if you're trying to go overseas or get a special duty, you know, an instructor billet or like recruiting or something like that, you have to go through a personal financial screening with a command financial specialists to determine your that, you know, your debt to income ratio isn't exceeding a certain threshold, and that you have, you know, your debt under control and that there is a surplus instead of a deficit at the end of the month and, and whatnot.

So, the one thing is that, you know, understand that there is no financial education, it's going to be up to you to understand your finances. And it's not as difficult as most people make it out to think and the reason why it's so difficult is because financial advisors want you to bring your money to them to invest for you so they can make money. And that's why they use a lot of big words and they send you you know, hundreds you know, paper reports on, on certain things to just not cut almost distract you from trying to learn it on your own. So you can go to them for advice and, and that's complete BS and and it's really what you put, you know, you will get out of it what you put into it like pretty much anything in life. And I mean, you can take so many different ways and I'll kind of ended off with if you want to be like an active investor, if you want to spend some of your time, you know, actively investing, then it's just a matter of your your education and what you know what you put into it.

And that would start with reading a book like a Rich Dad, Poor Dad. And that is really what opened my mind up like most people who get involved in real estate, they read this book and then it's like, they're blown, their minds are blown and then it's just the sky's the limit from there. Or if you want to just be more of a passive investor and you don't want to spend too much money on it. Then again, don't just listen to financial advisors. Do a little bit of basic research. And if you don't want to be an active investor, I'm telling you, the absolute best thing you could do is look into low fee index funds and let it sit, high savings rate is going to be your best friend, the more money you can put into it, and, and, and not putting in mutual funds or single stocks, putting it into a low fee index on and letting it grow over time, but the more you put into it, the more it will compound over time.

And, and when I was the one or two, I had some interest in that and I had like, you know, a Roth IRA and you know, I thought I was doing the right thing. And I, the more and more I got interested in the more and more I read about and educated myself, the more I realize, you know, business and real estate are income producing assets, that is what you know, make the rich people and wealthy people in that position of financial freedom. You know, most rich people don't just have mutual funds and 401k’s and IRA’s. You know, it's because they have to invest in income producing assets like real estate and business.

So, I mean, I can talk for hours and hours about that I wish I had more time than just a minute or two to talk about e one or E two, because this is the stuff I'm passionate about. I want to help educate people. But hopefully I hit you know, hopefully I hit what you think the answer you will look for.


I mean, the nice thing about being a CFS is oftentimes you will get more time than just a minute or two. So I don't know if we talked about this previously, but I actually just recently got my certificate as a command financial specialist.

I basically made my command send me because I was like, look, I've run this website, and people are starting to ask me financial questions. And although I might know the answer, if I don't have this certification, the Marine Corps can say hey, why are you giving financial advice, so give me the certification so that I'm not stepping out of my lane and speaking out of terms, it is a good class. In fact, I went through it, I did the budget and I was like, oh, man, I could be doing so much better with this. And I started to say I increase my savings gap.

So I don't know if you've heard this but since you mentioned the index funds, I'm a I'm a fan of Vanguard and I haven't confirmed this, so this may just be rumor mill so I pardon me if I'm speaking out of line, but apparently Vanguard just lowered from 10,000 to 3000 for their entry fee like last week, buddy of mine just posted something about it. So I have yet to research that but if that's the case, that's killer.


I have not heard that at all myself. That's gonna be something you know, I'll look into just on feeding others the right information. I also do, you know, financial coaching and stuff.

So I'm glad you brought that up. So, you know, that's something else I'll make sure I look into.


Sounds good. Yeah, no, I totally agree with the real estate world and I mean, realistically, is it you know, if we file, if we boil all the financial advice in the world down, like expenses lower than income, save the difference, you're on the right path, but the right stuff gets so over complicated, it's amazing.

20:00 - 25:00


I mean, because if you think about it, the education that most of us got 90% of us got is to go to school, get a good job, work hard and be safe.

Okay. Okay, that, you know that makes sense. And then you know that that will set me up for financial freedom, and not at all and, and there's so many different ways you could go about it, but you know that that's just not enough and back in the day when our parents, his parents and you know, you know at that time when all you really had to do and most people work for the same company for 40 plus years and actually put and invested a lot of their their income and savings into 401k when the 401k was first established. And when all these companies were offering pensions, that's when you know, mutual funds were actually offering 12 to 14% returns. And now it's nowhere near that, you know.

I recently read an article about the creator. I think his name is Todd Benna, the creator of the 401k said it turned into a monster and you know, he created it but he's so, uh, Paul that what it turned into because of all the different all the different brokerages that are kind of just destroying it and what you know the mutual funds that are that are that are in these 401k vehicles they're the returns that are being offered are less than the rate of inflation I mean, you could say that you're getting like a five or 6% return but when you adjust it for taxes and inflation and fees more so than anything else, it's like a zero percent return almost like a negative return so I'm telling you that's why income producing assets like real estate in business are are what is you know, gonna build generational wealth and create financial freedom.


And you have control. I think that's like...


Absolutely man.


My favorite thing, so one of my favorite people in the entrepreneurial world and I think part of it's because he's super controversial is Ilan Musk, right? And I've been using this example lately because people talk real estate versus stocks and I'm like, okay, well here's the difference. If I smoke a blunt on TV, my real estate is still worth the exact same amount tomorrow, but if Ilan smokes a blot on TV Tesla drops 9% and I have like, I can't control it. And do I care if Ilan smoked, but no, in fact, I think it's probably one of the funniest things I've seen someone do on a podcast.




If I was a billionaire, like, I mean, I'm not saying I'd be out smoking blunts all the time, but like, the guy launched a convertible into space. Like, he's that, like, if you gave a practical jokester a billion dollars and said, what are you gonna do with this? That's Ilan, but people hate it, and then Tesla plummets, and then Tesla's strikes. And then I mean, Tesla's like this in the stock market. I'm like, alright, well, at least in real estate, even if I do something retarded, like get a DUI, the property is still gonna be worth the same amount. So.


You have like you said, you have control of where the location that you're investing, you have control of what tenants are in there. You have control of the rehab that is done. You have the control of the manager that you put in place, you have the most control. And it's a tangible asset that produces income every single month. And there's, you know, four or five different ways that are that profit centers, I guess you'd call it. And people don't factor that in when they say, Oh, it's too risky. Or, you know, those are people who obviously don't invest in real estate and they're taking advice from people who don't invest in real estate. They just heard somebody maybe have you know, lost their shirt one day in real estate. So then, you know, they're just too afraid to take action.



Alright, so moving on. So the next one I asked and sometimes this backfires on me. So don't take it as I think the military has to teach you this like it's not the intent of this question, but because I think everybody has prefaced it by saying I don't think it's a military job to teach you and like to get that teacher killed and stuff all that good stuff.

Anyway, sorry. Um, what is one thing you wish the military taught you about real estate or finances earlier in your career? And I bring that up because they do a really good job of teaching us everything else about life skills. And then it seems it's getting a lot better. But it seems as though like the general finances, financial training that I got prior to, like the last three or four years was don't buy a car with this interest rate that was about it. So.


Again, this this goes back to really the first thing that I spoke about when you asked me you know, if E one, E two, you know, approach me what I would tell them and and it's, it's all on you, you know, our society is clearly not going to teach you what you need to know about personal finance in the military is just not going to teach you it's going to be up to you to go seek that advice.

And, and the military has these amazing services in the Fleet and Family Support Center. And inside a fleet and family you know, you have the Navy Marine Corps, leave society if you need a quick interest free loan. But if you're in a situation where you need that before, there's a couple steps that you have to go through before you get to walk in a neighbor Marine Core the study and get along, you know.

25:00 - 30:00


Step one, you got to go to your command financial specialist and get a screen in step two, then you go into the fleet and Family Support Center with that proper screening to make sure that you are evaluated and then, you know, you'll actually pay this loan back and it's for a legitimate reason.

But it's going to be up to you it you know, we have the services in place that can offer you you know, car buying, home buying proper use of credit cards, and all these different things that they don't teach you in school that they should and but, you know, I don't, I'm not going to be the person like that will say the military should have taught me this in school. It's going to be up to you as the individual to seek it out. And that's really what I'm trying to emphasize and create awareness on it is what you put into it. Do not think that you're going to get taught, it's your financial future. It's your, you know, your family's legacy, and it's gonna to be up to you, you can't, you know, blame corporate America or the military or the government for things that you do or you do not have. And that's why most people have that, you know, scarcity mentality, and they're looking for payouts or looking for the government to take care of them, or corporations or the government, and they're not going to. And that's one of the main reasons why I got involved in business and real estate because of that reason.

So to answer your question, I don't wish that the military taught me I guess, maybe, if they, you know, put more into it for others coming behind me. And that's why when I was a command financial specialist, I held seminars on all this basic stuff that you know, don't just invest in the TSP, think about all your other options that you have before you before you do that, so.


Yep, absolutely. Yeah, I was the knucklehead who bought all the Harley's and tattoos and left his money in the G fund for the first six years and...




Yeah, I did about everything you could think of wrong, I think I left my first four years of service with like, more debt than savings. Yeah. So, thankfully.


You’re just among the average man, unfortunately, that's normal. That's the average.


Somebody handed me that book that everybody quotes the Rich Dad Poor Dad. And it was like ohh.

Anyway. Alright, so what makes the Tim Kelly method of real estate investing unique and or successful?


Um, you know, I guess I'll start by saying that's another cool thing about real estate. You don't have to be the most creative person or the most unique person. There's so many strategies that have been proven successful by people that have gone before us that we can literally just emulate and learn by.

So I mean, I'm not the only one investing in multifamily real estate in the affordable housing sector. I'm not the only one investing in mobile home communities in the southeast and the Midwest. You know, but we are investing for straight cash flow with incredible upside. And our strategy right now is that we pay cash for our properties and you have a lot more leverage and negotiation position there to get much better a much better deal at closing. And then we refinance it within the first, you know, six months to long term low interest debt.

And, and so, again, it's not that I'm unique or special in any way and I don't want you to think that you need to be in order to get involved in real estate you should be anybody can get involved in real estate doesn't matter what your financial position is, what your background is, what your what your if you have any traditional education, preferably you don't, you know, because then you weren't kind of swayed in a certain path. And you know, if you got some degree, you're almost stuck in that path because you think you need to utilize your degree. And that's another beautiful thing about real estate man. Anybody can get into it. Anybody to become successful at it. And so, I'm not unique. We just offer incredible returns to our investors and we provide clean, safe housing. So then we're incentivized by the government, you know.


Yeah. Yeah, that's killer.

All right. So here we go. Here's your plug. So I'm going to go ahead and say for you, active duty passive income, but alright, so what's the what's the one resource? You know, books, courses, websites, you recommend anybody start getting started in real estate?


Yeah, so.


More than one resource here, but let's hear about it.


So many. I mean, for the military, you know it whether you're active, whether you're a veteran, whether you're affiliated in some way, whether you're a spouse, you gotta check out active duty passive income if you have not, ADPI active duty passive income. It is an incredible platform. Yes, this may sound like a shameless plug because I am a team member. I am a coach and a mentor on that platform. But there's incredible resources. It's a curriculum that was built on how to go from A to Z to find, locate and negotiate and close on your first property.

30:00 - 35:00


There's free, a free VA loan mastery course, which is again, one of the best resources out there and benefits provided to the military.

We have a house hacking course. And not only do we provide this curriculum, but we provide coaching and mentorship along with some of our packages. And you know, the cool thing is we just released a book. I just co-authored a book, the five of us wrote a book on it that's available on Amazon, and audible. It is called Military House Hacking. It is officially a number one bestseller on Amazon. Definitely check it out. It's a super quick read. It's a 100 page book written by all of us and there's some awesome secrets in that book on how to leverage your VA loan and the power of house hacking in the military, you know, to start off your investing career then how you can skyrocket.

We're currently developing a multifamily course in the ADPI curriculum. So that is by far the best resource that I know of for the military is to navigate to active duty passive income, check it out. And that'll really set you up and it's such a simplified way to learn how to get involved in real estate and become successful.


Yeah, I'm actually trying to make it look like I'm still looking at your screen but I'm finally gonna go buy this book.

So anyway, all right, now we're back. So now it's now set up as a reminder, I've been meaning to click on purchase on Amazon. I think it's been in my cart..


Looks like this, Military House Hacking.


There you go.


Yeah. Again, it's a quick read. It's only you know, about 100 pages total. Obviously there's an E book that's available as well. I did say I think I'd if I said audible I misspoke we're working on getting audible. We've had a lot of requests for an audiobook. So I think we're gonna kind of try to nail that down soon.

But the foreword on the book was written by Rod Cleef. If anybody knows who Rod Cleef is, he's probably one of the number one multifamily educators out there right now. He's got a boot camp, and he's, you know, he's on tour right now in all different cities. And he highly supports the ADPI mission. And our mission is to educate, you know, military members on how to achieve financial freedom through real estate investing. And so we have a really good relationship with him. And he wrote the foreword of that book, which we're really excited about.

And you know, we have an incredible podcast. We've already got some of the rich dad panel of advisors booked to be on our podcast, which we're really excited about.

So yeah, it's a lot of the same guys who've been on bigger pockets multiple times on there, you know, we we, you know, we just had Nathan Brooks has been on BiggerPockets a bunch of times. He's been on our podcast. And then we actually just had Clayton Morris on our podcast as well. He's another, you know, multiple BiggerPockets guests and he's had this incredible, you know, organization that he's built to so yeah. I highly recommend you scoot over there and take advantage of what we're offering on that platform.


Yeah, definitely doing some good things I saw a man I can't remember who's Eric are murky and post about an invite to Jacko like a month ago it was something something something online was like going bigger going on more invite yakko and I was like, oh, man, that's that's killer. I need to up my that was honestly like looking at looking at that I was teetering on podcasts or not podcasts is that the other kind of settled on this because I'd rather have a conversation seeing someone although I'm going to pull the audio out of all this and upload it via podcast here very soon anyway.

Um, but yeah, you guys are doing some super cool stuff. Definitely I keep it, you know, it's one of those things like one of these days, I'll end up back in San Diego and be able to meet the rest of your team. Because I mean, we all kind of serve a similar purpose. And that is, that is, hey, there's a bunch of military guys out. And the funny thing is, and I'm sure you have run into this as well, is as you start talking about real estate in the military, it is like people come out of the woodwork and you're like, holy crap. I never knew anybody there. So for example, this is probably my funniest one to date is I was on the BiggerPockets podcast. And like a week and a half later, I'm walking down the hallway. I'm like, I think I was like, standing at my duty desk. And this Captain comes up and he's like, hey, uh, your David Pere? Right? And like, yeah, he's like, oh, yeah, cool. Hey, I just came in.

I'm working in the SP or whatever. Okay. And, like long story short, he had seen the podcast seen like via the email system where I worked and then he ended up coming to that unit and was like you know we it was just this really weird like never seen each other before and like long like 30 minute conversation in the hallway guy owns like 13-14 units and you know it's like all of a sudden there's people coming out of the woodwork like hey I own this condo and and I do this Airbnb and I have this househack and I have that and it's like holy smokes where were all these people a decade ago I was buying Harley's I wouldn't have listened.

35:00 - 40:00


But you know super cool. And it's really cool, I mean people don't understand and the power that you have in the military as far as I mean, the VA loan is huge for one but then the the other thing is just like in the military, you have this in from a personal finance perspective, this opportunity to live with such low expenses and just save and you may not make 10 you know up seven figure income but you make more than a tough to do well with it if you're intelligent.

Anyway, so my short little soapbox is definitely looking forward to doing some more work with you guys in the future.


I couldn't agree more man, you know, and that's one of the reasons why I'm so passionate about giving back and helping educate people on personal finance. Because you, you know, and this is another huge thing that I didn't even mention, but you have to establish your financial foundation before you try to invest in real estate.

You know, please don't be one of the people who think that they could invest in real estate to get out of a bad financial situation because it's just not going to work that you know, work like that.

You may have heard some stories, you know, people, wholesaling because you don't need money or you don't need credit in order to wholesale. And that's true to an extent, but you're gonna need some capital, you're gonna need a really good credit score, you're gonna need some residual capital in order to become successful and start scaling your business whether you dive into wholesaling just to stack up capital, that's great. But, you know, unless you want to spend all your time marketing you're gonna have to spend a few bucks on a marketing campaign to find to find sellers and to find buyers and investors so make sure you guys establish your financial foundation first before before you even tried to dive into you know real estate and and I'll give you guys my contact information I have literally a blueprint of how to step by step how to establish your financial foundation before you dive into real estate that I'll give you guys for free. That you know, that I created and I use it for my coaching business and I'll make sure you guys get that.

So don't hesitate to reach out to me but take it seriously and get your financial foundation established before you try to start investing in real estate.


Awesome. Yeah, definitely.

All right. So before we wrap this up any parting advice or big ideas you'd like to talk about?


Nah, other than you know, first things first, mindset is everything you guys have to make sure you are taking care of yourselves and that personal and professional development is a priority every single day.

If you're not growing you know you're dying every single day do something wake up with intent that you're going to just crush the day and that you are you have a positive mindset and you need to brain feed positive thoughts you know every single day whether you read scripture, whether you listen to an inspirational podcasts like this one, whether you're reading a book, you know whether you're just you know going for a run or getting a you know, an amazing workout in first thing in the morning to set the day off in the right direction but mindset is everything and and another thing is health is wealth fortunately in the military, they kind of force us to be in decent shape because they they test us semi annually on our personal or on our physical fitness but I mean if you make your health a priority, your you know your wealth is going to follow suit and you're just going to feel better, you're going to look better, you're going to be more confident, you're going to just have more energy to go crush the day. And, and, and pretty much you'll be, you'll be above average. And you know, don't follow the masses because the masses are usually going the wrong way. But mindset is everything, make sure you guys are taking care of your mindset and the content that you're feeding.

And the last thing I'll say is the E to E ratio, the entertainment to education ratio, you know, the most successful people on our planet have like a 20A, work 20% of their free time is dedicated to education, and 80% of the time, I'm sorry, 20% of the time is entertainment and 80% of the time is education and the education meaning like personal education, not like formal education, where you're going to sit in a class learning about you know, you know, politics or you're learning about you know, something that is irrelevant to your to your life and that won't apply.

So make sure you're not you know, you're you're using your free time wisely. And to shape your mindset to focus on your professional development.

40:00 - 42:45


Definitely. Yeah, the mindset is huge. One of these days I'd be curious to hear kind of more about what you talk about mindset and ethics with all your, your young aviation guys, but we could probably go off forever about that and..


Totally man.


Totally time to start the day.

So, yeah, alright, so where can people get a hold of you? So what, I mean is it is ADPI the best way to get a hold of you Facebook, LinkedIn, like what's the best way to reach out if they want to ask you some questions.


So I'm on a lot of the most of the major social network platforms, you can go to Vtimothykelly.com. That pretty much shows everything that I'm up to links to all my different websites. You know, you could definitely find me on Facebook. Just Tim Kelly, but Instagram, I'm @thetimothykelly, LinkedIn I'm @VTimothykelly, again, the website is Vtimothykelly.com.

Do not hesitate to reach out to me via cell If you want to just shoot me a text or give me a call do not hesitate 847-910-9161 and then yeah shoot me an email, Tim@activedutypassive income.com either way I'm available.


Is that uh is the active duty is that spelled out?


For the email address yeah activedutypassiveincome.com. Tim@activedutypassiveincome.com just like the website activedutypassiveincome.com but we created the acronym ADPI because it's just whenever we're talking about it or or whatever it's a it's a lot easier.


Yeah I kind of kicking myself for military to millionaire for not having made my email David@FMTM.com rather than because mine right it's militarytomillionaire@gmail, which is fine but like, yeah, I didn't realize at the time that military to millionaire is going to confuse my fingers if I'm typing too fast. It's and then Like, oh, man, too many L's or whatever, all the time.

So I'm debating changing my email, but it's kind of late in the game for that. So we'll see what happens.

All right, anyway. Hey, Tim, thank you very much for taking some time to chat with us today. I'm sure that this brought a ton of value out to both of our communities because they're all the same people. Yeah, I really look forward to staying in touch and working with you guys some more here in the future.


Yeah, let's do it. Man. Let's definitely partner on some stuff, too. I know, multi families have been your thing lately.


It’s a way to go.


Yeah, let's let's partner up and match our criteria together and crush them big deals.


Yeah, I'm all about it. Sounds good, brother. Well, hey, I'm gonna talk to you later.

Tim Kelly on The Military Millionaire Podcast

Tim Kelly

Tim is a Chief Petty Officer in the Navy, and has been active duty for 13 years!

Mr. Kelly has also spent 13 years actively serving in the United States Navy, and is currently an instructor of Water Survival, due to his background as a rescue swimmer. He started investing in real estate by purchasing a four-plex with an FHA-203k loan, and has since progressed to a 42-unit apartment complex, and even larger multi-family apartments, mobile home parks, and other syndications! Tim is also a member of the Active Duty Passive Income (ADPI) team!

His advice to an E-1/E-2 (18/20-year-old) is:

Personal finance is important, but you need to get out there and teach yourself. Unfortunately, the world fails at educating us on finances, but it is much simpler than you would think…If you only take some steps towards learning! If you want it to be simple, look into low fee index funds (I like Vanguard and some Fidelity funds personally, but there are tons of good ones out there)!

his big idea/parting advice is:

Take Ownership, and teach yourself about finances/investing. Watch your E2E (entertainment to education) ratio…the more education the better (not talking about college, but personal development here). Mindset is everything!

Here is the full video interview.

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