Financing..where to start??!
Hi everyone, my name is Nichole and I'm new here! I'm new to investing and long story short...I quit my job in February to start building my business full time but had my first wholesale deal not go through and my then partnership dissolve within that month which made me step back and really evaluate where I'm going with my business. I know that I can wholesale once I get organized enough to start marketing (which means my 3 kids starting school again so I have time to focus!) but in the mean time, I reallllly want to get started on controlling properties. My dilemma is...where do I start without a lot of cash but with great credit??
My husband has a great job but we don't have hardly anything in savings because we focused on paying off debts (5 student loans down to one in 4 years). We were approved for $190,000 mortgage two years ago when we wanted to get a new house. It would have been $250,000 but we had/have a $60,000 house loan. We since have done remodeling to our current house increasing the value to at least $75,000 (complete guess though). Also, we have a friend who wants to get into investing and has $20,000 cash....so my questions are...can we use that $190,000 to buy investment properties?? Is that a good idea?? Would banks go for that?? I would say a HML would be a good idea but in my market, rentals are the cashflow, not fix and flips My understanding is that the loan won't get paid off under the terms of a HML(because HML are for fix and flips) unless someone knows differently?? Please educate me if different.
Or should I refinance my home and get the difference (estimating $20,000) to start and pool it with our friends?? Yes, we are working on building our savings again and putting some payments on hold instead of paying them off too but I want to start investing sooner than later even if we aren't cash flowing that much yet.
I'm veryyyy overwhelmed with all this but...real estate (and being successful with it) is on my mind 24/7. I discovered bigger pocket podcast exactly 2 weeks ago today and have listened to 0-22 since. :) And plan on listening to allll of them. I listen to the podcast when I'm driving, cooking dinner, cleaning, folding laundry, and putting away clothes.
I'm so glad someone recommended this site to me. It's soooo awesome.
So...advice?? Thank you!!!