Have you ever had one of those lightbulb moments that flips your perspective upside down? I had one of those exactly five years ago while training to be a copilot on the mighty CH-53E at MCAS New River, NC. I still remember talking to my dad on the phone after the oncoming duty-stander reported late at night and turned over the watch with me. “I don’t care if the market crashes!” I proclaimed into the phone.
That was a powerful statement to say out loud and it felt especially good saying it to my dad, who was very conservative financially. Our family lived like royalty when my family lived in Ukraine for the better part of two decades, but coming back to the United States created all sorts of financial turmoil.
Of course, the somewhat hot-headed remark begged the question, “Well, why the hell don’t you?”
”Because we’ve been thinking about real estate investing all wrong,” I continued. “We shouldn’t rely on an unpredictable market to control our return on investment. I don’t care about appreciation anymore, I care about monthly income, or cash flow. From now on, we are going to look for properties that put money in our pockets every dang month.
You could almost hear the audible click over the phone line. A light bulb had just gone off.
The phone conversation continued for another hour or so before we finally hung up and decided to talk about real estate some more the next day.
Let me take a quick step back and make sure we are all on the same page here. The epiphany moment I had five years ago – I was so passionately trying to pass on to my dad over the phone – was simple, yet incredibly powerful. What I realized was what my family valued more even than a large heap of cash in my savings account was a consistent stream of income. To put it bluntly, I wanted to create streams of mini pensions through multiple rental properties to pay for all our regular expenses and then some. I wanted this because I wanted to be financially free.
Why did I ever think that buying a house and waiting for it to appreciate was the right way to invest? If that was the case, another 2008 real estate crash would surely ruin everything.
Realizing there was a different way to invest in real estate was almost nauseating because of how mad it made me for not understanding or learning about it earlier in life. My next thought was, “Why doesn’t EVERY eligible service member use their VA Loan then?” After all, as long as the rent was high enough to cover the mortgage, a dependable property manager, reasonable maintenance expenses, some reserves and still have some cash to spare (read: cash flow), this should be a no brainer. Right?!
Maybe it is because a lot of veterans are really turned off by the thought of a VA Loan — they think it’s a huge liability or just a boring thing to talk about, but nine times out of 10 it typically boils down to access to education and trusted professionals to help someone get their foot in the door. The reality is, it’s not just a few veterans . . . There are millions of veterans who have yet to use this incredible wealth-building benefit. In the military, we get used to working in fire teams and squads and it just makes sense for us to want a trusted team of Real Estate agents and Lenders that are all investment-minded and have a military background to work with. The secret weapon that a lot of these investment-minded agents and lenders have, is the understanding of what to look for when it comes to Military House Hacking (check this book out to learn more) and how to run the numbers quickly and efficiently when trying to filter out the homes with no future cashflow potential. Remember, the objective isn’t potential appreciation (that’s just a cherry on top!). The objective is to create a stream of income when it’s time to rent out your home.
About a year after that phone call with my dad, I partnered on my first rental home and first apartment complex. My life and the lives of my parents and siblings had changed forever. We were on track to create financial freedom and legacy wealth for generations to come WITHOUT worrying about the market crashing down on us. Sure, everything has its risks, but there was a particular comfort that came with the more education I immersed myself into. It seemed as though real estate was more transparent and without the smoke and mirrors. Still, it was a lot of information and not necessarily easy, but it felt so real and doable that I knew I was hooked for life. It was around that time, that I decided I had to start sharing these principles and little-known strategies with other military members and their families.