Soldier to Soldier Hawaii

VA Loan – How To Invest In Real Estate With A VA Loan

what is going on everybody in today's video 
i'm gonna be going over everything you need to   know about investing with a va loan this is brian 
simardi he's a load officer done hundreds of deals   and we're just gonna go through you know 
everything you need to know so uh let's jump into   it and as always if you have any questions about 
anything just drop them in the comment section   below and we'll answer it but to get started with 
what types of properties are eligible for va loans   uh anything for units and under so this va loans 
as well as fha is a great way to house hack   so you can you can basically buy an apartment 
building you can get started in multi-family   investing and financial freedom you have to live 
in one of the units and then you can rent the   other three units out and not only that but the 
va fha pretty much any lender is going to use the   rental income from the other units to help you 
qualify for the loan the biggest perk about fha   and va they generally give you a little 
more leniency on your back-end dti your   debt-to-income ratio that's why it's the better 
option when it comes to investing or house hacking   because say you have a little bit more in debt or 
like a car loan that you didn't really understand   about before in learning about investing it 
gives you wiggle room whereas conventional   they're pretty strict with their guidelines 
and also it has to be your intention to live   there for 12 months you know some especially in 
the military you know situations can change you   might get transferred but and it's kind of a gray 
area but your intention has to be to live there   for 12 months and then you can rent it out and you 
can sell it you can do whatever you want with it   yes big keynote is housing fraud fannie mae and 
freddie mac are getting deeper into housing fraud   so i don't know exactly what they do to figure out 
or verify you're actually living on the property   but i just you don't want to risk jail time 
you can also just buy a single family house   condo townhouse and then rent out a room or 
two you can house hack so you can have cash   flow coming in every single month i know here in 
montgomery county there's a lot of properties that   are built that way where you have like a walk-out 
basement um running out of basement i can give you   specifics here in maryland that's where i live 
um a whole basement you can rent for at least   a thousand dollars with our current rates right 
now mortgages you're probably looking say like at   a 500 000 house you're looking between like 33 3 

That's a third of your mortgage yeah that's   that's pretty significant and over the course of 
a year yet 12 000 you know that could go towards   vacation a brand new roof brand new kitchen 
bathroom and then as far as the condition of   the property va loans kind of have a reputation 
sometimes for being a little bit more strict and   i guess yeah they are more strict but they're not 
like not it's not like the entire house has to   be fully renovated or anything like that correct 
appliances stove fridge yeah and handrails for any   stairs are the main things yeah i remember i had 
a house one time or it wasn't it was for a client   and we had to basically purchase i think 
it was like a refrigerator or something   like that before closing and they got a steal 
of a deal on it but the appliances have to be   there it has to be a livable type of property 
another thing to add in there is that you do   have to move into the property within 60 days 
i don't know if i mentioned that so maybe you   purchase a property that needs a little bit of 
work you'd have to do your renovations and then   within 60 days actually move into the property 
and then who is actually eligible for va loans   anyone who's available to get a certificate of 
eligibility from the va so any bad remarks if   you're a military member you may not be eligible 
so it's important to reach out to a good lender   to get your cle certified eligibly or if you're 
in the military branch already still active   duty you can reach out to your admin they'll 
gladly give it to you okay perfect what about   credit score credit score you can get as low as a 
580 but there might be some stipulations in terms   of credit wise or rate you might have a really bad 
rate but 620 is generally the best number minimum   i would recommend and then usually uh seven like 
around 740 750 is like the ideal like in a perfect   world yeah but you can still with va you can 
qualify with with a lot less than that yeah so try   to get that credit score up a little bit if you're 
down what about uh down payment requirements down   payment zero down but the biggest caveat here is 
that there is a va funding fee on your first time   using the va loan it's a 2.3 percent of the sale 
price okay and then after that i believe is 3.2   if you use it sequential if you do not 
have any service related disabilities   at least 10 percent because if you do have a 10 
disability you are exempt from that va funding fee   okay so two percent and then plus you need closing 
costs right so another i'd say a thousand i mean   depending on your title company title company 
appraisal you probably get away with like a less   than three thousand dollar closing cost and some 
some people some investors i mean you do have to   we'll talk about uh purchasing the property 
because it does have to be your primary residence   but some investors will actually have the seller 
the seller can actually credit you that amount   right if you negotiate that with the seller yes 
so if you have a good realtor you can negotiate   closing costs okay so it technically could be 
you know zero percent or close to zero percent   if you negotiate the the correct way correct 
and actually with my my first purchase with my   my va loan i had uh the seller do seller 
financing oh no way because it was only   like three three thousand dollars for the closing 
cost okay and it just covered everything for me   there you go and i got lucky for my actual first 
property i bought it from a previous investor it   was a single family home okay and he kind of just 
like he knew what i was going to do yeah so he's   like i'll help you out and va loans are assumable 
that's an attractive thing about them is that you   know someone else could take on you know take over 
the loan or even you could potentially actually   there was a four unit in washington dc that i was 
um i was looking at and it was actually a va who   who owned it or a veteran that owned it so that 
that loan that rate his price was kind of high but   his monthly payment would have been pretty low so 
i was kind of like evaluating that as a potential   option as far as the purchase price of the like 
the loan limit it's going to depend obviously   on the city if you're in san francisco or we're 
in the washington dc market uh you know the the   loan limits are going to be significantly higher 
right if you're in like jacksonville or something   like that right so based on your entitlement from 
the va you'll get that all in your certificate   eligibility it'll break down what area or what 
your entitlement is and then same time you have to   look at your county to figure out what the loan 
limits for the va is in that area because you   could say in the dmv area you could probably look 
at like 1.2 easily yeah depending where you are   and if you're looking for obviously um an investor 
friendly agent um myself personally i own 17 units   multi-family in the washington dc market and then 
brian obviously does he's done hundreds of deals   around here so uh definitely reach out to either 
of us at any point uh if you have any interest and   then as far as uh like va streamline refinancing 
is that similar that's pretty similar to fha   streamline right correct yeah i did that last 
year went from when i bought my house in 2018 i   could say i bought it at a 4.75 interest rate okay 
during the pandemic i refinanced to a 2.25 wow and   well so i think another thing since i said 
with the va funding fee if you have at least   a 10 disability rating by the va you are 
exempt from the va funding fee um i am a   marine corps veteran and i have a 10 disability 
so that refi was basically free for me wow yeah   so with the va earl interest rate reduction loan 
or refinance loan did you not verify your income   wow yeah so it's it's a lot easier of a refinance 
than most typical refinances and then we i don't   know if we mentioned this but there's no pmi 
there's no um mortgage insurance with fha loans   or anytime you're putting less than 20 down 
the banks are typically going to require that   you pay an extra i have a loan i think it's for 
about 490 and i'm paying like 350 per month and   pmi mortgage insurance yeah so it can be pretty 
significant so it's nice a nice benefit of the   va loan that could make and break your cash flow 
depending on what you can rent your property for   actually because when i refinanced it i was only 
saving 350 per month or so but that was basically   the same as my pmi so i'm like oh man i need to 
get rid of this pmi too that'll be a nice well the   biggest thing about removing pmi too now you're 
putting more money into the actual loan rather   than just mortgage insurance mortgage insurance 
is completely separate from your principal and   interest yeah as far as time time frames for 
closing on a va loan what are we looking at   because i know a lot of times if you're using like 
a credit union or different you know slower big   national banks you know sometimes it can be like 
45 days to close a va loan which in any market is   like kind of a long time right for us we as long 
as we have all your borrower documents in ahead of   time more likely before you get under contract 
we can close you under 15 days because all you   will be contingent on is on your appraisal and 
title yeah that's that's pretty fast that's like   that's like a cash offer exactly some people it's 
like you know those cash buyers all right two week   closing and then let's say you you move out of 
town like a lot of times in the military you know   obviously you might get transferred so i mentioned 
earlier you have to your intention has to be to   live there for 12 months but if you not if you're 
not able to for whatever reason you know you   can keep it you can still rent can you you're 
allowed to rent the property out i'm assuming   before the 12 months or if you're if you're active 
duty and you get a pcs a primary change of station   or you have orders to go somewhere else you are 
allowed to rent the property while you are away   and that also allows you to buy another property 
using the va loan again at your new duty station   yeah which is important and you can use the 
va loan twice or more more than once multiple   times however there is a catch to that because 
it's it's all about how much your entitlement   and eligibility yeah the va is so so if you're 
basically entitled to let's say a million dollars   and the first property buy is like 750 you're 
then your next property can only or the va will   only loan you that remaining 250 250 000.

okay so yeah so it's not like there's a slight   catch to it it's nice that you can use it multiple 
times right but the best way to get out of there   the loophole is to refinance your va home into 
a conventional mortgage yeah your rate might be   slightly higher but then you can use zero down 
which is your better i mean the best benefit   yeah and that that's if you really want to 
get you know start building your multi-family   portfolio while you're working in the military 
or whatever it may be that is a great option   you know buy buy a four unit live there rent it 
out after a year you know maybe you refinance it   and then repeat the process over and over again 
and actually i just want to add on this is a tip   that i get for my active duty veterans or 
active duty military service members if you   are eligible to get bah basic housing allowance 
you're getting paid to buy a property basically   and if your goal is to rent it out in the future 
you're getting double pay you're getting paid to   have a property and then you're moving on to 
putting tenants in it or say if you buy like a   three bedroom home and rent out two of those other 
rooms to your your boys or whoever your friends   other service members then you're getting 
triple pay that triple pay i mean what's that   i thought double pay was nice but triple pays 
i mean exactly that's like a no-brainer that's   pretty much it and if you have any questions 
or you're looking to do this um definitely   reach out to us and i just want to leave you 
with this this one quote that a multi-family   investor was talking about he said you know the 
law of the first deal this guy michael blanc   once you do your first multi-family deal it opens 
up this whole world of multi-family investing and   within three to five years what he's seen is a lot 
of people become financially free you know through   multi-family investing and if you're looking you 
know not only to do these types of deals but also   if you're looking for a one-on-one mentor like i 
said i own 17 units and i'm looking to mentor you   know different different investors and also agents 
nationwide so definitely reach out to either of   us for the va loan 100 coming from marine corps 
veteran investor myself i only own one rental unit   currently but i'm looking to learn more from jeff 
there we go all right talk to you guys later bye

Sell your Home for a $5000 flat Fee Full service Soldier to Soldier

CALL TODAY 808-312-7884