Hi there everyone. I am 25 and have been wanting to start investing in rental properties for awhile now...my issues holding me back is 2 very major factors, credit and money!!!! I have been saving and may have a quarter of what I need but I need to be able to qualify for a mortgage my first go round. So I just have to sit tight, save and work on paying credit cards on time. Sounds so far away. I would love to one day own and manage my own properties, probably no more than 8 single family homes or just a 24 or so unit apartment complex. Am I thinking realisticly?
Their is more than one way to skin a cat. Acquire as much knowledge as possible from this site and books and such and I guarantee you will find ways to get started without having those two things. The beautiful thing about real estate is its lets creative people excel. Maybe look into wholesaling to find great deals and partner up with other investors you meet at your local REI meetings and JV them.
When you first start real estate investing it is confusing
When I first started I had a teacher
This teacher was a business owner
My job once I was trained was to talk to Home sellers about cash or terms offers
I used a simple document called a letter of intent to lease or purchase
You can't make any money wholesaling unless you get it cheap enough so that's the "cash" part
The formula is 65% times after repair value minus expenses for repairs
Having a few cash buyers already is very helpful. You interview investors that have already bought property in the past and find out where they want to buy and what kind of properties that one
"Terms" means using creative financing which you can learn about here at biggerpockets
There is "subject to existing financing" or "sub to"which means you buy a property and take over the payments and get the deed
There is a lease option assignment where you lease option from the seller and sell your paperwork to a renter for a fee
There is buying on a wraparound mortgage or installment land contract and renting out the property
For a free and clear property with no loans, you can buy on installment sale and rent out the property
Offering the seller a cash offer and a terms offer I think is the easiest way for you to make money in real estate both when starting out and when you are established