Get Paid to Buy a House? (Must be a veteran)

Get Paid to Buy a House? (Must be a veteran)

Wholesaler · St. George · Member since 2024 · 45 posts · 15 votes

Just throwing this out there for the world. I bought my primary residence last year, and actually got paid $7,000 at closing for a new construction house! You can do it too! Here's the catch: you have to be a veteran and you have to have your real estate license. That alone probably eliminates most people. BUT, if you are there, or even if you are a veteran and on the fence about getting your license but looking to buy your primary home, you can finesse your way into getting paid at closing! VA loan= 0% + buyers agent compensation.

Incredible right? Dave Ramsey would not be a fan of this, as he also would not be a fan of putting 0% down on a house, but if you don't mind leverage, this is a great strategy. Personally, I'd prefer to use that money payment on a fix and flip, or for marketing expenses to find that next deal.

So here's what my wife and I did. We bought a new construction detached townhome (think of a townhome with common areas but without adjoining walls). We bought in a developing area with a lot of new construction and commercial construction to ensure maximized appreciation, both in rent and in home value. If we were to think short term, we'd probably say that this is a bad investment. If we were to move out tomorrow and rent this sucker out, we'd be losing $500/month (yikes). But as the property value appreciates, so will rent. Did you know that not so long ago, a house in this area would rent for $1,000, but now rents for $2,000+?

We have already seen our property go up enough in value to completely offset our payments in just 6 months. And we got PAID at closing! Real estate is awesome, and this is just one of many tactics to get into it.

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  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    2y

    @Jeremy Bourgeois who paid the VA funding fee? It has always seemed a little disingenuous to me that the VA offers "0%" down - but then requires the funding fee. Personally, I think it could be a great marketing plan for sellers if they purposely advertise to VA buyers and offer to cover the funding fee. Many agents steer their sellers away from VA buyers (in a multiple offer / hot market situation) because they perceive the VA loan process to be difficult. And yes, some under maintained houses struggle to meet the VA inpection requirements. But obviously your brand new home wouldn't have that problem. Besides, it is a little unpatriotic to snub a VA buyer for another type. However, I would definitely want to see the loan handled by a "local" lender - not one of those online VA loan companies. I've not had a good experience with those. Congrats on the house!

  • Wholesaler · St. George · Member since 2024 · 45 posts · 15 votes
    2y

    Thanks! The funding fee is waived if you have a service connected disability. In my case, it was waived. Forgot about that part, so I guess that this would be a 3rd requirement to have this work for you. Personally, I had less trouble dealing with VA funding than I've had in the past with other types of loans, which was surprising for me.

    I've never heard anything good about some of those companies (I won't drop names), but we did use a local company, and even closed the loan in less than a month.

  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    2y

    Thanks for your service @Jeremy Bourgeois and good luck moving forward in your investment journey. 

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