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Question

I want to invest in real estate and i know that i want to buy properties and rent them, but i can't get a loan due to my position. I have a full time job as an industrial electrician and i also have my real estate salesman license. I am currently working as an agent part time but have not closed a deal yet. My plans are to sell the house that we are currently living in and downgrading to a smaller house to free up a little cash every month and try to get another loan for my first rental property. I know of hard money and personal lenders but it will take me a lot of time to pay them back and i would end up losing money with their high interest rates. Is there another option you guy's can think of for me to start investing in real estate? Or should i wait until i am in a better position and keep the nice house we are currently living in. I only have 15K in cash to invest at this time.

Carrie Hallensleben · Answer

Hello and Merry Christmas,

I wonder if you have read any of the posts (or book) about investing with no or low money down by Brandon? I listened to the podcast but don't have the book yet. It sounds like if you are willing to think creatively and network you can get into REI sooner than you think. Partnering with someone and learning more about the field with a mentor may be a good way to break in...

Good luck!

Carrie

José Rodriguez · Answer

@ Elizabeth Colegrove

I couldn't get the loan because of my loan to debt ratio. I bought my house 7yrs ago for 135,000 and i also financed a car loan for 20,000 this year. I provide all the income for my family which is my wife and three kids. I tried a couple of credit unions and big name banks and they all declined me for a loan of 50,000.

Elizabeth Colegrove · Answer

Why can't you get a loan? We have done very moving out of our home and renting it out when we are transferred, Have you shopped around brokers? We have found that who you go with (broker, bank, credit union) matters