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 enjoying life’s experiences. We’re all trying to find ways to expand our wealth.
However, the military makes that a bit challenging at times. Military careers are often stable, yet they’re demanding. They don’t leave much time on your schedule to work a second job and make additional income. Also, it can be incredibly hard 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 mainly on its own.
- It’s passive: You need a passive income. One that grows your money without making you run everywhere to make it happen. That’s real estate.
- It’s tangible: While there are various other investments you can channel 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 raise its value and directly affect the amount you take home every 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, “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, and a college fund for your kiddo, then diving into real estate could be the perfect step forward!
Considering a Real Estate Investment Property? Here’s What You Need to Know if You’re a Military Member
- Your military career is an asset: The fact that you’re military is a big advantage when investing in real estate. Although it usually 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 previous one, you know the neighborhood. There’s possibly a large number of military in the community, which not only makes you and your property appealing on the market, but it also gives you the security that your investment won’t sit vacantly.
- You know the local businesses: No one can manage the property by themselves. Even if you’re staying local, there are times you’ll need to ask for backup. The ability to establish connections with local service companies like handymen, the AC guy, and plumbers will help ease your stress when things inevitably go wrong.
- You have access to great financing options: Your military status gains you access to multiple 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!