Do you have a transient career? Are you constantly moving all over the country and wondering how you will ever invest?
Personally, we have actually been able to turn this lifestyle into an asset. While I have had to learn how to manage from all over the country and to handle crises without physically being there to deal with them, the benefits have strongly outweighed the negatives. Let’s take a look further and delve into some of the reasons that moving around the country can be great for real estate investing.
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4 Reasons a Transient Career is Great for Real Estate Investing
1. Ability to Review Diverse Areas of the Country
We have lived in 3 diverse parts of the country: Texas, California and Virginia. Because of this, we have had the opportunity to evaluate very diverse areas. This has allowed us to find the areas that we want to invest in — and the ones we’d rather stay away from.
The Benefit: Because of our experiences with travel, we have not always invested “locally” — i.e. within the community — but sometimes explore investment areas within driving distance. For example, when we were in Virginia Beach, we found Charleston. So we explore the areas surrounding our towns, too (6 hours away in the case of Charleston)!
2. Exposure to Potential Team Members
As we have moved around, we have gotten to know brokers, real estate agents and other people with whom we have formed relationships. This has allowed us to put together a group of people to rely on when we need recommendations or have issues.
The Benefit: Our teams are typically not fully completed with all the members we’re ever going to be need. The key is to put together one or two critical team members who can help you fill in the blanks when needed. Knowing key individuals throughout the country can help substantially in filling out your real estate team whenever (and wherever) needed.
3. A Diversified Portfolio
In whichever area we end up, once we become established, we try to buy property, even if it is just a primary residence. This lets us diversity our holdings all over the US. That way, we’re set up in a position to take advantage of a lot of the benefits that a diverse portfolio offers.
The Benefit: If you buy in many different places, the economy of one particular geography won’t cripple you, as you will have other areas to pull up the slack. This diversification will reduce your ability to be “all in” for one gold mine, but it will also take the pressure off a certain locale to perform spectacularly and will give you a safety cushion if one of your investments fails.
4. Chance to Acquire Several Personal Properties
Like everything in this world, many types of property investments can be tools to wealth if you use them correctly. To date, we have bought several personal properties as long term investments throughout the country due to our transient lifestyles. So for us, this method has been a great tool to get a foot in the door as far as real estate investing.
Here are some perks to acquiring personal properties:
- Low Down Payment: Zero to five percent down, depending on the programs available.
- Lower Interest Rate: Interest rates tend to be .5-1% lower than investment rates.
- Easier to Qualify: Personal properties are much easier to qualify for than investment properties. Therefore, for the newbie, this can be a much easier strategy.
The Benefit: Personal property investing shouldn’t be your ONLY way to invest; I simply advocate against one totally disconnecting the purchase of their own house from their real estate investing pursuits. In the right areas, your own house can be a HUGE asset beyond just a place for you to live.
Guest what! Even if you live a transient lifestyle now, later in life, you and your family might find that it’s time to grow and move on. When you no longer are living the transient life, if you acquired property while you were moving around the country, you will have money building equity from properties you’ve purchased through the years. You’ll have the ability to sell them and 1031 your properties into you next adventure!
Related: Cool Tool for People Planning a Move
My hope is that you take away from this article that everyone has the ability to build assets in real estate — even those with transient careers. While it may not be easy, seeing your situation for its benefits will help you get ahead and find your own niche in the investing world.
For those with military (or other transient) careers: How do you handle the challenges of constantly moving while trying to invest in real estate?
Let’s talk in the comments below!