My name is Chris Powers and I'm 22 years old. I recently attended a FortuneBuilders class and am very interested in become a Real Estate investor. The main problem is I don't have the capital needed to continue learning their systems so decided I would try to find more information elsewhere. I've been interested in becoming a Real Estate Agent for a time now, but because I recently found out about this other form of possible income, I want to learn more about it. Can anyone help me figure out what I need to start my own business of investing in New York? Preferably Albany, NY or Westchester County, as I'm in Albany now for school, but may be heading home this summer after school.
Hope you guys can help!
Hi Christopher I am from NYC and capital is a big problem for me to. Try owner occupant via FHA 3.5% down and you have to live there for one year
To piggy-back off what
@John S. said. These FHA programs allow you to buy up to a 4 family property, so you can live in one unit and rent the rest. One year later you can move out and use this experience (and hopefully equity) to buy the next property. The FHA also has a program called 203k, which allows you to use FHA funds to buy properties that need renovation. I think this is the best entry level path into real estate.
But what if my parents would not approve of my choices so they wouldn't cosign the property with me?
Christopher, I admire your willingness to jump in. Develop several other possible sources of funds. At some point, we all had to take that first step. And with the first one, as Ben R pointed out above, you're vulnerability to risk is lowered considerably when you have several tenants kicking into your costs every month. Buying a building that is empty and needs a renovation is probably the scariest and most risky. But if you can put yourself in the situation of running a going concern, that will mitigate much fear. After that, while learning is paramount, it's mostly a matter of lather, rinse, repeat. As for your parents, show them the numbers on paper, and if they can see that you've done your homework, it will be a slam-dunk. You're young, people don't expect you to know what you're doing. BTW, listen to parents: it's disgusting, but they're often right. You're smart to start building equity from a young age. Good luck!
All made good points. Depending on how much school you have left, I'd buy a multi-family in Albany, live in one unit or bedroom and rent out all the other bedrooms to other students. Returns are excellent if you pick the right tenants.
if you need a co-signer, I would find out why by trying to get pre-approved for a FHA loan. Then do what you need to do to get credit established so you don't need a cosigner. Get a summer job, preferably in residential construction. Pay is decent and you'll learn a lot about homes. Or go ahead and get your real estate license and find a good broker to work for. Whatever you do, save as much as you can and apply it towards your 3% down for FHA.
Parents can be helpful but can often hold you back. In the end sometimes you just have to jump in and do it, and if you make a mistake consider it as part of your education. And whatever you do don't give money to fortunebuilders or any of those other guru hacks
NY Agent # 10401290530
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