Hi I'm kevyn, I'm 18 years old & i have a real passion to get started in real estate. I know this is not a get rich type of thing & I'm cool with building long time wealth as well as putting a couple dollars in my pocket. Im currently in college but its not really for me. & having a 9 to 5 isn't my cup of tea either. I have little to no money but would love to get started ASAP! I ready to do Whatever it takes for me to get started fast & to further my knowledge & experience . I really need some tips on how to get started ASAP ! Thank you
Real estate investing without cash means that you need to take it slow and steady to build equity. The worst thing you can do is overextend yourself and trash your credit even further. Here is what I would recommend:
Find a house that you can either sublet, rent to own or by on a land contract. Now you have to make sure that you find a good quality house with either two or three bedrooms. Why? You want to buy a house that others would want to live in and one that is not going to turn into a money pit.
If you want to earn a little extra money each month, find a place to rent where the rent is below market and then make sure that the rental contract will allow you to sublet. This means that you can turn around and re-rent it out for more. Finding cheap rent helps. For example, you rent a house for $600. You then find someone to rent it for $675. Every month you make $75. Of course, if they do not pay the rent then you have to cough up the $600. So find a good tenant. Now, do not spend this money. Save it to invest again.
Another option is to rent to own. For a time you pay rent and an additional rent premium which is used as the down payment on the home. After 2 to 5 years, you then use this equity to go get a bank loan to purchase the home.
The other method is to buy on land contract. Because mortgage rates are so low, this is not always the cheaper option but it keeps you from going to get a bank loan. In a land contract, the owner plays the role of the bank but he will charge you a rate higher than the bank, especially if your credit is poor. You put a little money down, let’s say $1,000 - $5,000, then you make monthly payments to the property owner for generally a period of 3 to 5 years. At the end of the payment period, you have to pay the remaining amount in one lump sum. That is when you get a loan. By then, you have equity and hopefully a higher credit rating. Meanwhile, you rent out the property for at least what you are paying.
In other words, find a place and rent out the rooms to college students.
welcome to the site.
@Kevyn Otero Welcome to BP! It's great to hear your enthusiasm for the real estate business. You may want to start by checking out the BP podcast and BP blog. Apart from the forums, I find them to be a wealth of information.
Best of luck!
We are buy and hold investors. We bought our first house in Virginia Beach at 23 right out of graduate and flight school . We bought a total foreclosure and than fixed it up. When we received orders from this area we rent out the house. We know many other friends who rented out the rooms so they lived rent free allowing them to save their living costs. So if there is a will there is a way. You just need to come up with a business plan. once you have an idea what you want to do, you just need to start planning for that goal.
Another great place is to look around the blogs, forums and listen to the podcasts. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog in your signature. Its a great additional networking source.
Look forward to seeing you around! Let me know if I can help!
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