I’m heavily debating on getting into property investment after I separate out of the military soon. Will more than likely be going just north of Kansas City, but would like to eventually return home to the Quad Cities, Illinois.
I’m really interested in tips and advise on how to get started, risk vs reward, the process of dealing with PM’s, etc.
Any info would help a lot, and I hope this can also help other new people that are seriously considering this like me.
Congratulations on exiting the military; what branch are you in? There is a large population of military investors on BiggerPockets, and the single most important thing you can do is start networking. To learn and be successful in the REI space, knowledge and network are, in my opinion, the two most important factors. Since you are a veteran, the easiest way to enter into REI is through a VA loan and finding small residential multifamily to house hack. This will give you a low barrier to entry and flexibility on exiting to scale up eventually.
Do not worry about the risk vs. reward. There are risks in all aspects of life. Just do your best to mitigate them by being purposeful and having a clear vision. That comes down to finding your market and building your team. If you have not already done so, look into the skill bridge? It is a program that allows transitioning veterans the remaining 6th months of commitment to work in the profession they choose after exiting the military.
My advice would be start with a 2-4 unit property where you live in 1 unit and rent out the others. With a VA loan you can put 0% as a down-payment. Great way to get started with $0 out of your pocket.
@Joshua McMillion Thank you! Currently an Air Force Firefighter, and sadly I only have a couple months left before medical discharge, I didn’t know about SkillBridge until about a few weeks ago.
Thank you for the info!
@Gaetano Ciambriello definitely was something I was thinking about, I didn't know if the VA loan could be used to buy one or not.
Yes it can!
@Gaetano Ciambriello hood to know! Admittedly, I’d like to eventually get into this full time some years down the road if I can, so I’m definitely planning to have more than a few properties in the years to come.
Let me ask you do you need a 1 year or 2 year work history for a VA loan ? Just curious for my personal situation.
Also follow me follow and connect with me looking to network with lenders.
@Samuel Nuckles Thanks for your service and congrats on deciding to get into real estate. I agree with @Joshua McMillion : you have to network! You can do a lot of networking here on Bigger Pockets. I would also consider joining a mastermind group.
The other thing I would recommend is to learn as much as possible! If you haven't done so already, start listening to podcasts, reading articles, reading books, watching youtube videos, etc. Different people like to consume information in different ways, so just pick the ones that work for you and start learning! Don't pay for a course or a guru right off the bat!
You need to start learning, make sure your personal finances are in order (if they aren't already), and keep networking like you're doing. As you learn more, you can start forming your own 'why' and long-term goals that fit your family's goals and risk tolerance. Then you'll figure out which asset class aligns best with your long-term goals, then you can figure out a more detailed plan for how to take action.
Best of luck and keep us updated!
@Samuel Nuckles when evaluating risk vs reward, I think you'll find that it's hard to beat real estate. First of all, unlike stocks, you have a lot of control over your asset. Secondly, when comparing returns against other investment options, be sure that you are considering all sources of returns other than just cash flow. Real estate returns will come from cash flow, equity through both mortgage reduction and appreciation and also the depreciation tax benefit. When you factor in your total equity return, real estate far outperforms most other investments with lower risk. Although a handful of real estate markets lost 40-50% of their values in the 2008 crash, this is very rare and unusual and in fact, virtually every markets has fully recovered. Unlike other investments, it's unheard of to lost your entire investment, even in a down turn. These are just some things to consider when evaluating real estate vs other investments.
Air Force TSgt here ;-)
Buy before you get out, even with VA loans you need proof of income to qualify so do it while you still have a paystub!!
Thank you for your services. I am a Newbie also, I wish you the best.
@Samuel Nuckles @Audra Luther is right. You could qualify now. A MF you live in is the best way to start. I did 13 years in the Army and then medically retired four years ago. We are killing it now in Clay and Platte county. Love that area. Be ready to work hard, read a ton, and take some chances. Everything will work out in the end if you simply do that.