how military members retire rich

5
= HOW MILITARY MEMBERS RETIRE RICH RANCHO COASTAL PROPERTIES, INC. “I always thought I would have to work through my retirement. Now I can relax and do as I please.” BRANDON FOSTER BRE # 01983904 760-583-9757 [email protected] RANCHO COASTAL PROPERTIES 2833 CACATUA ST. CARLSBAD CA.,92009 BRE # 01836634

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Page 1: How Military Members Retire Rich

=

HOW MILITARY MEMBERS

RETIRE RICH

RANCHO COASTAL PROPERTIES, INC.

“I always thought I would have to

work through my retirement. Now I

can relax and do as I please.”

BRANDON FOSTER BRE # 01983904

760-583-9757 [email protected]

RANCHO COASTAL PROPERTIES 2833 CACATUA ST.

CARLSBAD CA.,92009

BRE # 01836634

Page 2: How Military Members Retire Rich

Rancho Coastal Properties, Inc. –Brandon Foster, Realtor

2833 Cacatua St. Carlsbad, CA., 92009

[email protected] – 760-583-9757

RETIRE RICH

Testimonial

While in the military I never thought I

could get a loan due to me living month

to month on my pay check. Little did I

know that I was paying someone else to

get rich. Yes every time I made a rent

payment I was paying for my landlord to

get richer. Finally I learnt about the VA

loan, 0% down with no upfront cost, I was

able to buy a house for the same amount

that I was paying for rent.

Not only that, due to the tax break you

receive for owning a house or condo, I

was able to get money back at the end of

the year. The process allowed me to

move into my own home. I lived in it for a

while and then when I had to relocate I

rented it out. Now that person was paying

for me to get rich.

By the time I retired the house had

increased in value by 100%. With having

someone else pay the rent for most of the

time I owned it meant that I had paid

almost nothing towards paying down my

loan. This meant that when I retired I sold

the property and was able to purchase

another house for cash where I was based

when I retired.

INSIDE THIS ISSUE Testimonial 2

How to Get Started 2

Transferring or Moving Base or Station 4

The Future 5

I now am rich, earning my retirement with

no home payments and dividends from the

cash I invested after the purchase.

How to Get Started

Being in the military is hard and the pay

can make it harder to set up a future

where you can be wealthy too. There is a

way though. To compensate its members

for their hard work, the government has

created many programs. These programs

are part of your pay and military members

really should use them. Places to find out

about all these benefits can be found at,

www.military.com or www.ebenfits.gov.

Base pay is very minimal; however BAH is a

fair market price for housing in the area

where you are based. This compensation

can make you wealthy. This amount is

usually given to landlords every month due

to the fact that military members do not

know that they can get a loan for a house

for this amount. They are often scared due

to the fact they would have to relocate too

often. There is an answer to both these

concerns.

By Brandon Foster

Page 3: How Military Members Retire Rich

Can you afford to get a loan for a

property on your pay scale?

The answer is almost, always, yes. This is

due to the fact that to be in the military

your salary is considered very stable and

therefore the banks are more willing to

give military members loans. Combine

this with one of your benefits a VA Loan

and you are even more likely to get the

loan. (Below we will go into how to do

this)

I have to relocate every three to four years

and cannot make two mortgages or a

rental and mortgage payment.

The answer to this is, „you need to

research where you buy to make sure that

the house you buy has a rental demand‟.

Combine this with the increasing demand

for rentals in the USA it will make renting

your property to cover all or most of the

mortgage payment easy. (refer to below

on how to do this)

So how do you get started on you path

way to wealth?

1. Contact a mortgage company or

bank and ask for a pre-approval for

a VA Loan. They will take you

through a process of getting your

financials, credit score and asset

statements to see how much of a

loan you qualify. Remember to keep

the amount for below or close to

your BAH amount. If one bank will

not loan to you always remember to

try a second or a third.

Combine this with one of your

benefits, a VA Loan and you are

even more likely to get the

loan.

You want to make sure that it‟s

below or close to your BAH

amount because this way you can

also tap your fellow military

members who are stationed at

your base, to rent to them when

you move.

The great thing about the VA loan

is that you do not have to put any

money down on the property

when you purchase it. This means

you need hardly any savings. This

allows you to get into the real

estate game with hardly any

money in your savings account.

This is how you can go from close

to broke to stepping stone to

being rich.

The loan officer will finally get

you a pre-approval letter for the

amount of loan they are willing to

give you.

2. Contact VA home loan specialist,

real estate agent, Brandon Foster.

Page 4: How Military Members Retire Rich

AN ARTICLE 760-583-9757. Using his knowledge

of the San Diego and its surrounding

county real estate market, he will

search the MLS (real estate property

search engine) for you. He will search

for the perfect condo or home that

will fit your family‟s needs as well as

the requirements to make it a future

rental property.

3. Go through the home or condo search

and find your perfect property. With

the help of your real estate agent,

place an offer and hopefully get

accepted.

You now are a proud home owner.

Complete your tour at your base or

station. Making improvements to your

property and growing equity in the

property as you live in it and pay

down your loan. (this depends on the

market but on average always goes up

in price) Make sure to talk to a tax

expert when doing your taxes as you

can get great returns and deductibles

being a home owner.

Transferring or Moving Base

or Station

Now comes time to transfer or change base.

You need to start as early as possible and

examine the rental market for around your

property, for like kind properties. Get a

competitive rental figure in mind that will

cover or come close to covering your

complete mortgage.

1. Contact a property management

company. Ask for how much they

charge to rent and manage your

house or condo. Make sure that

money paid in rent, minus their fees

still covers your mortgage payment.

(or as close as you can) If the deal

looks good, from the property

management company, sign up with

them. ( try not to manage your own

property, you are too busy with the

military to worry about the rental)

2. At your new duty station contact a

loan company and ask them to check

if you still have eligibility left on your

VA loan. Depending on the location

you are in you could still have

eligibility to get a second VA Home

Loan.

If you do have eligibility, use the VA

Loan and begin the process over

again attaining a second property.

If you do not have eligibility you can

ask the loan company to try and get

you a conventional loan. If the

conventional loan requires that you

put down too much money, that you

don‟t have or is too difficult, rent.

Yes this is a time to save. Find a

reasonable rental and use this as a

time to gain equity in your first

property and build up your savings.

3. On moving your second time, if you

were able to purchase a second home

look for a property manager again

and begin that process to get it

rented. If you rented this tour, look

to purchasing at your new duty

station with the money you saved as

Page 5: How Military Members Retire Rich

a down payment. Or if your new

location gives you more eligibility in

your VA loan use the VA loan to get

a second VA Loan.

4. As you move from station to station

keep an eye on the value of your

properties. If you see that you have

gained a large amount of equity in

one of your properties, sell the

property and move the cash into a

new property as a large down

payment or total cash purchase.

You might be able to use a 1031

exchange to save yourself from

owing capital gains tax. (ask a tax

expert or attorney for help in this

area)

This is where you must be wise but

can start to become very wealthy as

you attain more and more property.

If you do it correctly you could own

four properties earning rental

income by the time you retire. Or

one or two properties you own out

right that you could liquidate and

purchase a large property to retire

in with cash left over to invest

elsewhere.

The Future

The future can be very bright for military

members if they play their cards right and

use the compensation and benefits

afforded to them, through their jobs.

“This is where you must be wise but can

start to become very wealthy as you

attain more and more property.”

“make yourself wealthy…..

For more information on how to make

yourself wealthy, please contact Brandon

Foster at the phone number or email to

below.

---------------------------------

Brandon Foster Lic # 01983904

Rancho Coastal Properties, Inc. 2833 Cacatua St.

Carlsbad CA, 92009

760-583-9757 [email protected]