New Prospect Investor Looking for some advice from a Senior Investor
My name is Paul Armstrong I am a Traveling ICU nurse and have a strong drive and interest to move into the real estate investing world. I currently have a large DTI ratio and want to start applying this to long term wealth after paying all of my school debt down instead of sitting in a bank or the stock market. My next assignment will be located in San Antonio, and I will be there for 3 months plus. I have done a solid amount of research and it seems like a solid foundation market to potentially purchase a first property (Please correct me if I am wrong). I am willing to put in the extra time and hours it takes to succeed and open for partnerships or even just information or tips that any of you established investors may be able to send my way. I look forward to hearing from any of you and appreciate your time in advance. Thank you sincerely Paul Armstrong
Quote from @Paul Armstrong:
Others will disagree, but I believe you should pay down the debt first, then invest from a position of financial stability.
Do the math using two scenarios:
1. You pay the minimum on your student loans and put anything extra into investments. After the loans are eventually paid off (20 years? 50 years?) then add that to whatever you are investing. Where do you end up in 30, 50, or 70 years?
2. Pay the debt off like a madman. If you work extra hours, get $20 in your birthday card from Aunt Gertrude, or pick up a nickel off the ground, you put it toward the debt. After you've paid off the debt completely, start using that same hustle to invest. Where do you end up in 30, 50, or 70 years?
Math don't lie. Debt holds you down in a variety of aspects and will hinder your performance as an investor.
Proverbs 22:7 The rich rule over the poor, and the borrower is the slave of the lender.
Quote from @Nathan Gesner: Nathan I appreciate the reply but the debt is gone. That’s one of the main reasons I think It would be a good time.
Quote from @Paul Armstrong:
Others will disagree, but I believe you should pay down the debt first, then invest from a position of financial stability.
Do the math using two scenarios:
1. You pay the minimum on your student loans and put anything extra into investments. After the loans are eventually paid off (20 years? 50 years?) then add that to whatever you are investing. Where do you end up in 30, 50, or 70 years?
2. Pay the debt off like a madman. If you work extra hours, get $20 in your birthday card from Aunt Gertrude, or pick up a nickel off the ground, you put it toward the debt. After you've paid off the debt completely, start using that same hustle to invest. Where do you end up in 30, 50, or 70 years?
Math don't lie. Debt holds you down in a variety of aspects and will hinder your performance as an investor.
Proverbs 22:7 The rich rule over the poor, and the borrower is the slave of the lender.
Quote from @Paul Armstrong:
You wrote: "I currently have a large DTI ratio..."
Debt-to-income ratio is determined by dividing your debt by your gross monthly income. The larger the debt-to-income ratio, the worse off you are.
When you say your ratio is large, that means you have a lot of debt, which is why I answered the way I did.
Delayed gratification...it and success are directly correlated. As a former wealth banker and investor - and owner of a private client brokerage firm, I can tell you that 'just because you want it' doesn't mean you should do it. Get yourself set-up for success first. I'm not telling you anything you don't already know or you wouldn't have stated your DTI issue. Pay down your debt, learn more about the BUSINESS of real estate investing (there is nothing passive about it), KNOW the market - not just what it appears to be, and talk to a few lenders to find out what the qualifications will be for you to get financing. And, as a buyer, you won't be paying commissions so add bench strength by having an investor-focused realtor on your side. There's a lot to do before you will be ready and poised to go. Building and preserving wealth isn't transactional. It takes discipline and self-control. Those who are wealthy do things differently than consumers. You get to choose which lane is yours...
Quote from @Paul Armstrong:
My name is Paul Armstrong I am a Traveling ICU nurse and have a strong drive and interest to move into the real estate investing world. I currently have a large DTI ratio and want to start applying this to long term wealth after paying all of my school debt down instead of sitting in a bank or the stock market. My next assignment will be located in San Antonio, and I will be there for 3 months plus. I have done a solid amount of research and it seems like a solid foundation market to potentially purchase a first property (Please correct me if I am wrong). I am willing to put in the extra time and hours it takes to succeed and open for partnerships or even just information or tips that any of you established investors may be able to send my way. I look forward to hearing from any of you and appreciate your time in advance. Thank you sincerely Paul Armstrong
Hey there Paul, I am a Travel ICU nurse as well! I live a few hours north up I-35 in Temple, but I know several investors in San Antonio, as well as a RN who lives and invest there. Would love to connect you all. Where are you currently located?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
What have you done so far to find your first deal?