Action Steps Part 1
I am trying to accomplish a few things and I am not sure how to get from point A to point B. I want to be a multifamily investor, real estate agent, and a hard money lender. I have terrible credit, no money, and I have bad debt that I am paying off. I've wanted these things for a long time and have come across life issues that I generally let derail my plans. So, here is my current plan.....
1. Reduce my monthly expenses by a minimum of $1000.
2. Use Monthly surplus to accelerate bad debt pay down.
3. Increase income by 20-50% year over year.
The biggest piece to this plan is to reduce my monthly expenses in an effort to eliminate my bad debt. So, I want to buy a trailer for $70,000 or less. I worked out the numbers and if I have a monthly mortgage on a trailer with a purchase price between $50,000-$70,000, my monthly payment will be between $200-$600 a month. The challenge is that I do not think I will qualify for a conventional mortgage. I have been denied other loans before in an attempt to consolidate my bad debt. The $200-$600 a month mortgage would mean a $200-$600 a month reduction in living expenses. My current rent is $800 a month. So 800-600=200 or 800-200=600.
Here are some things that I think could work in my favor.
1. I own 2 acres of land that are worth roughly $14,000 (no debt on this land)
2. I am an Army Veteran. (VA home loan might be possible if I can solve the credit issue)
3. I have a place to put the trailer. So it will not cost me more money for land or lease fees once I can get a trailer.
4. I make $25 an hour at my full time job.
1. Are there programs or products that could help in this situation?2. Am I missing any options that could or would help me to accomplish my goals?3. Am I asking the right questions?4. Who should I be talking to?5. Is there a product that would base my ability to pay a mortgage on my current monthly rent?
Determined to figure this one out.
Hi Jesse. That's a tough one. I'm sorry to say that I'm not aware of any quick solutions to those very legitimate roadblocks. Repairing your credit is a year or more long process. After a year of timely payments and debt reduction, your FICO score will certainly improve. I have no idea how bad your credit currently is, but people can usually purchase with a mortgage with as low as a 650 credit score.
Check out the Neighborhood Assistance Corporation of America (NACA) loan program. NACA was formed in 1988 and provides an affordable option for potential first-time buyers:
✅ No down payment
✅ No closing costs or fees
✅ No mortgage insurance
✅ No consideration of credit score
✅ Below market fixed interest rate
There are several requirements to be eligible, starting with attending one of their workshops.
I wish you all the best.
admirable goals.. Some things:
You can't get a mortgage on a trailer. In this context, you can only get mortgages when the "house" is fixed to the ground. A trailer is just personal property and you usually go to your local DMV to close and take Title...
Depending on your lifestyle plans, makes sure you can hookup utilities to your trailer when its on your raw land. You may not be able allowed -- I don't have details, but there could be zoning/permitting quirks. Talk to your local municipality about using your land.
Depending on what is wrong with your credit history, that could be a multi-year "wait" for your score to recover.
Yes, this is very tough to get started when you are behind. Its more than a simple post on a forum can fix. As I hope you know, "investing" requires you have something to put forward to invest. Usually it some capital/equity, credit, and knowledge/time. Keep working on it.
Not to dissuade you, but being successful as real estate agent and/or a lender is very difficult. Costs to entry are relatively low, but getting to close deals can be very difficult.
Be happy to chat. Take care.
No I appreciate the insight. This post is apart of the process. I'm aware that there are things I don't know. For example, I wasn't aware that a mortgage cant be put on a trailer. I am still going to check. But now I know its something to know.
As far as the land, utilities, and permits, that's already done.