I am a 5 year Navy Vet and current Navy Reservist. I am interested in learning more about real-estate, specifically buying and holding various rental properties. This isn't really a transition as I am employed full-time, however, i am interested in learning some of the benefits Veterans have in this field in the state of New York. What are some advantages at my disposal that can aid in me entering this field? What are the best resources that can be used both by civilians and veterans that can help a beginner investor?
Thank you for your time and knowledge!
Hey, Eddie. Great name, btw! ^_^
Here's a helpful way to start, being that you're a veteran. Your VA housing loan allows you to buy not just the traditional home, but a 2 - 4 unit home (known as "single family"); +5 units is multifamily. You can buy a du/tri/quadplex, live in one of the units, and rent out the other(s). This is a great way to start. Not only that, but after you live in it a year, you can refi the property, and use you VA housing loan to buy another 2 - 4 unit; the refi needs to pay off the loan in full. You have to go through a process to get it re-instated. I've read that it may be possible to do this with 2 properties, but can be trickier, and many suggest just doing one at a time. Note that unless you have prior management experience, only your current income will count, not the potential rent made from the units. Also, the rules are always changing, so you'd need to consult with a specialist.
Did you enroll in the Thrift Savings Plan, or any equivalent? Does your current employment offer any sort of retirement plan (ie, 401k)? If so, it's often possible to roll over all, or part, of your retirement plan(s) into what's known as a Self-directed IRA. This can allow you to have some money down for lenders who specifically lend to investors.
Hope this helps. Feel free to reach out, too!
There are a few franchise concepts that could be another alternative. Yes, it will require an investment to acquire the rights but many franchise brands offer a Veteran's discount on the Franchise Fee and have relationships with lenders who specialize in funding veterans interested in business ownership. The benefits of investing in a franchise model include a "turn-key" business that will provide you with the infrastructure, training and on-going support to help you build a successful business. There are several brands that I can recommend if you're interested.
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