Military Veterans Start Here!
This is for military members or military veterans who either already invest in real estate or want to invest. Recently, I started interviewing veterans and members on my own podcast, with the idea that I will also turn those interviews (and follow-ups) into a written book to help military members. Today I came onto BP and did a search on "military" and was surprised to see so many military folks asking questions and I read through some of the responses and realized how few of the responses seemed to be tailored to the military member experience...
First, this is what I learned of great value in the past few months:
#1. Don't burn your VA Loan on the the first purchase (courtesy of Tosin Davis, USMC vet),
#2. Don't buy a home at your duty station (courtesy of Rich Carey, USAF member), and
#3. Wait until 12-18 months to buy a home after retiring from the military (unless you are retiring to a home town you know and love well) (courtesy of Doug Nordman, USN Ret).
Why?
...ahhh...well, let me see what a few of you think before I bring in the data and advice!
Comments (1)
So nobody had any thoughts to questions above? No rebuttals? I just noticed that 96 people viewed this, but nobody had a comment or opinion! So I owe anyone reading an explanation:
1. Tosin said that most states have equal or better first-time home buyer programs that veterans can take advantage of; you can buy, live in part of it and then jump into your VA loan for next property. Of course, you can also re-use your VA loan benefit provided you live in property long enough and follow guidelines.
2. Rich Carey quite simply thinks that many duty stations are NOT in areas that are good for investing in rentals and that, if you buy something at every duty station, you WILL become a long-distance RE investor and chances are low that you'll get good property management, cash flow, and appreciation at all these locations. Know the area well before you buy and have a game plan! (...although this is from a guy who bought and paid for 20 homes at one of his duty stations (Montgomery, AL)! ...I know some guys who are doing well having bought at their duty stations, so I partially disagree, though I know MANY more who did poorly, so I think the lesson is nuanced...)
3. Doug Nordman's point was well described in his interview with me. When you're getting out of the military, unless you are back in your hometown, there's a lot going on. This is especially true if you have children and schools to think about and moving, out-processing, likely a new job (or jobs), etc. There's a tendency for people to be in a rush. When it comes to purchasing a home, this is dangerous and could be costly. You have to weight the pros/cons of moving twice (not generally a big deal for military people) vs. buying immediately and possibly regretting it once you settle in - plus many people don't end up staying in the spot they moved to immediately as well. I thought he made a solid case for this!
If you read this, please share your thoughts or comments and I'll continue providing military-specific content on a routine basis. (Otherwise, I'm in an echo chamber and I can talk to myself anytime I want without typing! hah!)
Jim Froehlich, almost 5 years ago