• Veterans can make real estate work for them by investing in single-family homes, multi-family homes, condos, apartment buildings, and commercial property.
• A mentor can provide invaluable insight into real estate and help veterans make more informed decisions.
• Veterans have access to VA Home Loan and VA Renovation Loan, which can help with financing and repairs.
• Veteran homeowners may also be eligible for tax breaks and credits by deducting interest paid on their mortgage and property taxes.
Financially, life after the military can be a challenge. Many veterans struggle to find gainful employment, while others may want to start businesses or invest in real estate. Investing in real estate has the potential to provide steady income and long-term wealth. But how can you best navigate the world of real estate? Here are ways how you can make real estate work for you.
Choose Your Investment Type Carefully
With real estate, you have a lot of options when it comes to investing. You can purchase a single-family home, multi-family home, condo, apartment building, or commercial property. With this purchase, you can transform any of this into the following investment:
Residential Real Estate
Residential real estate can be a great option when looking at investment types. Residential real estate is a property used primarily for residence and includes single-family homes, duplexes, townhouses, and condominiums. This type of real estate can provide a steady income from rental payments and potential appreciation in value over time.
Commercial Real Estate
Commercial real estate is used for business purposes, such as stores, offices, industrial buildings, and warehouses. This can be a great way to build long-term wealth since tenant leases usually have longer lengths and often include escalations in rent. Additionally, owning a commercial property can provide more control over your investments since you will be the landlord of any tenant leases.
One of the most popular investment types for veterans is vacation rentals. Vacation rentals are properties rented out short-term, usually for vacations or weekend getaways. This type of real estate can be a great option to get into the real estate market without investing in long-term property. A suitable location for a rental property includes an area near a beach, lake, or popular tourist destination.
Find a Mentor
Once you know what type of real estate venture you’d like to pursue, it’s time to find a mentor who can help guide you through the process. Look for someone with the following criteria:
- Experience in the real estate market
- Proven track record of successful investments
- Understanding of local markets and trends
A mentor can provide invaluable insight into real estate and help you avoid common pitfalls. Your mentor should be willing to answer questions, share experiences, and act as a sounding board. Having an experienced advisor who can provide guidance and resources can help you make more informed decisions. They can also find you a great deal on a property, help you with financing, and provide advice on managing your investments.
Take Advantage of Military Benefits
As veterans, certain resources are available that are unique to those who served in the military. Taking advantage of these resources could make all the difference when it comes time to purchase a property or make repairs before putting it back on the market. Here are the options:
VA Home Loan
The VA Home Loan program is available to veterans looking to buy a home. The loan offers lower interest rates and no down payment. This can be a great option for those who want to get into the real estate market but need help with financing. It also helps in funding for repairs and upgrades, as well as in closing costs.
VA Renovation Loan
The VA Renovation Loan is available to veterans who want to purchase a home that needs repairs or upgrades. This loan covers up to $50,000 for remodeling projects, including new windows, plumbing, and electrical work. If you have an existing loan, this loan can also be used to pay off the balance and reduce your monthly payment.
Utilize Tax Breaks & Credits
Owning a home has tax benefits that you can take advantage of. By understanding these breaks, you can save money in the long run. For example, homeowners may be able to deduct interest paid on their mortgage and property taxes. Additionally, there are credits available for energy-efficient improvements and those who purchase a home in certain areas.
Retirement should never be the end of your financial journey. Enjoy the peace and stability of the military lifestyle, but don’t forget to take advantage of all the available resources. Investing in real estate can be a great way to build wealth and create a secure future for yourself. You can make real estate work for you with the right guidance and resources.