Real Estate Investing as a Military Member
There aren’t a lot of people comfortable saying they have enough when it comes to financial planning for the future or indulging in life’s experiences. We’re all looking for ways to grow our wealth.
However, the military makes that a bit challenging at times. Military careers are usually stable, but they’re demanding. They do not leave much time on your calendar to work a second job and create extra income. Plus, it can be incredibly difficult for a military spouse to contribute. With PCS moving on the horizon every couple of years, a substantial second income is a far-off dream for some.
Why Invest In Real Estate?
When your time is limited, you need an investment that operates largely on its own.
It’s passive. You need a passive income. One that grows your money without making you run all over the place to make it happen. That’s real estate.
It’s tangible. While there are other investments you can funnel your money into, real estate is tangible. And because of that, it allows you more control than if you were to invest in the stock market. Not only can you physically see your money at work, but you can improve it. You can increase its value and directly affect the amount you take home each month.
It’s fairly low risk. Any investment comes with risk. But the amount of control you have in real estate supports the idea that it’s less risky than investing in the stock market. In 5 Reasons Why Real Estate is a Great Investment, James Harris shares that,
“History continues to prove that the longer you hold onto your real estate, the more money you will make. The housing market has always recovered from past bubbles that caused home appreciation to slip, and for those who held on to their investments during those uncertain times, prices have returned to normal, and appreciation is back on track.”
Is Real Estate the Right Investment for You?
“There’s no sense in jeopardizing your finances by adding debt to more debt. So if you’re thinking about buying a home solely as an investment property (with no intention of living there yourself), then it’s probably best to wait until after you’ve paid off other debt.”– Is a Rental Property the Right Investment for You?
But, if your debts are paid, you have money reserved for retirement every month, a solid emergency fund in place, as well as a college fund for your kiddo, then diving in real estate might be the best step forward!
Thinking About a Real Estate Investment Property? Here’s What You Need to Know if You’re a Military Member
Your military career is an advantage. The fact that you’re military is a big asset when investing in real estate. Although it typically means that you’re managing a property from afar, there are undeniable benefits.
You already know the area. “Military members have the benefit of many PCS moves to understand real estate at each duty station. If the landlord is their ‘thing,’ then previous geographical knowledge of multiple locations courtesy of the U.S. Government puts them in a better position to become a long-distance landlord simply by absorbing and understanding their daily lives.”– Dawn M. Smith, What Long Distance Landlords Need to Know
You’re familiar with the market. If you’re investing at your current duty station or a former one, you know the neighborhood. There’s probably a lot of military in the neighborhood, which not only makes you and your property attractive on the market, but also gives you the assurance that your investment will not sit vacant.
You know the local businesses. Nobody can manage a property on their own. Even if you’re staying local, there are times you’ll need to ask for backup. The ability to develop connections with local service businesses like handymen, the AC guy, and plumbers will help relieve your stress when things inevitably go wrong.
You have access to excellent financing options. Your military status gains you access to several financing options that can make jumping into a real estate investment more practical.
Before you decide which choice is best for you, take the time to research which home financing option (and lender!) is the best fit for you, such as:
- VA Loan
- USDA Loan
- FHA Loan
- Conventional Home Loan
With Mission First Capital, you can start your investment journey alongside other military members and veterans! If you have questions or would like to talk about potential partnerships or investment opportunities, don’t hesitate to reach out. Give us a call at +1 (844) 632-3863 or visit our website MissionFirstCapital.com to learn more and let’s invest today!