That’s how I see it. They pay their bills or ELSE! The “or else” can be very stiff punishments. Case in point: bounce a check, they give you a punishment on your military record, which not only effects your chances for promotion, but the penalty of bouncing that check can be as high as loss of 1/2 month’s pay for up to two months (might have changed and gone even higher since I got out). Commander’s discretion. And no, life is not fair. Or they can lock you up. Or take away stripes/rank (also costs money but hurts more due to time to earn it back).
For military personnel, on your rental application just ask who the commanding officer is. But it’s okay if you don’t get it. A quick visit to the base commander’s office will get you all the info you need, very quickly.
Also, what a lot of people don’t realize is, military personnel get orders to be somewhere else in a faraway land in 30 or 60 or 90 days. Imagine trying to sell a house in 60 days or less. Then imagine having to CLOSE the deal in 60 days or less. Makes for high motivation.
First of all I want to say CRE-OL is an outstanding site…
I am a beginning RE Investor, and I am still in the learning phase. I am located at Fort Bragg/Pope AFB, NC. This is one of the largest military complexes on the east coast supporting over 45,000 soldiers, and as such the nearby town of Fayetteville thrives on this industry. Also due to the military town, lots of VA Foreclosures are available too. Is the high turnover of military personnel in this area a good thing for investing?
I am looking to get started and I welcome any advice you might have in this area or anything in general. THANKS!!
Looks like investing in a military town would be great as long as the base is safe. Here a few years ago the whole city got together to save our Air Force Base from the base realignment committee. We saved the base, but lost our missle wing and heavy bombers. Now another round of base closings looms on the horizon, and all the business people are getting nervous again. If the base closes, a couple of the small nearby towns will lose over 50% of their populations.
Emment, I agree with all the good advice. I live in a heavy military area myself. It seems all the commerical businesses here have keyed in and targeted the military by offering incentives, discounts etc.
I guess that they might be on to something.
Dirk
I echo what has already been said. I had a rental property in Lawton, OK for a time and I never had any problems with military tenants (my problems were with the civilians employed at the local Goodyear plant). If you offer a clean place at a decent rate, you will have no problems attracting good military tenants. You could even afford to make a mistake (like paying too much for the property) and still come out good in the end. Good luck.
For the reasons mentioned by others investing near military towns can be very good business. I have a few rentals near a small naval base. The navy has been very good to me. I recommend as well in this era of DOD belt-tightening that you become familiar with the mission of the post and its future prospects. Total base shutdowns are still rare however. Also, I have found the base military housing office to be a valuable resource if you price your rentals fairly. I had two vacancies this year, and with their help filled the first one in less than a week. I had the second one re-leased the same day I received my 30 day notice. Good luck.
I’ve had rentals in a military town (near OKC) for years. I would highly recommend these investments. Besides having to be good about taking care of their debts, military personnel are used to taking care of the place where they live. They usually have had to clean their on-base housing at other assignments, and do the same for your rental property.
Again, I highly recommend rentals in military towns.
In my opinion, this could be a good opportunity for a creative investor. As you mentioned, the area is a revolving door for military personnel and a lot of them could benefit from your services. I see many options. Rental, L/O, etc. The armed forces is a very small community and word travels fast. If you can help out one family and treat them well, they will tell another friend who is transfering to the area. Before long you will have a pipeline of customers. The majority of people in your area are involved with rapid deployment or special operations type units and could be deployed on a moments notice. They need some one like you who is willing to work with them. Another plus is that you can be reasonably sure that you will get your money. If not, a quick visit with the soldier’s commanding officer should do the trick. The military operates a little different from the civilian world. In extreme cases, they will put you in jail for not paying your bills. Also, wage garnishment is very easy for a commander to impose. He doesn’t need to get the okay from a local judge. He is the judge. As an ex-soldier, I can tell you that on a military paycheck, you become very motivated to sell your house upon transfer. I think a very lucrative niche market could be developed.
My advice is to get out and get to know these people and your market. Be careful with your approach and don’t become just another person trying to get a soldier’s dollar. Approach it as a problem solver trying to help. I think there is plenty of opportunity for a person willing to embrace this market.
Bert brings up a very valid point. However, at your location, this is a non-issue. I am not as familiar with the air base, but Ft. Bragg will be there.