Where to start? Pay check to paycheck. Bad credit and no savings.

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Where to start? Pay check to paycheck. Bad credit and no savings.

Daaimah Brown
Fresno, CA · Member since 2015 · 4 posts · 2 votes

Where to start, how to go about getting into first property this way? Suggestions? Need to know (i.e. research I should be looking into)...

Types of programs, properties and strategies. None of my own money? What are these portfolios for hard lenders?

Go on details count :-)

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
10y

1 - Pay all of your bills on time.  This is a start to establish better credit management.

2 - Start by Wholesaling with the focus on using the cash from each deal to...

3 - Improve your credit by paying down your bills.  The first bills you payoff should ALWAYS be the one that have corresponding monthly bills.  This accomplishes 3 positive things:
1 - Eliminates that debt, which improves your DTI ratio
      2 - Eliminates that payment, which improves your credit
      3 - Frees up cash used to pay that monthly payment for use on a different MP

4 - Continue to Wholesale to accumulate cash to invest with.  This, joined together with the improved credit, will get you moving into deals.

If you focus, and don't get "distracted by shiny objects", and stay the course, can take very little time to accomplish.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    Move to a cheaper apartment or house, so you can save money. If you have cable, cut the cord. If you live in a city that has public transportation, start using that. Stop eating out. Eat cheap food. Downgrade your cell phone plan.  Start selling off things you dont need. Buy your clothes from thrift shops. If you have debt, start paying that down with the savings that you start accumulating.  Pay all your bills on time.

    I think you need to focus on mastering your personal finances before you can start investing in real estate. We need to learn to crawl before we can walk, and walk before we can run.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    2Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    10y

    1 - Pay all of your bills on time.  This is a start to establish better credit management.

    2 - Start by Wholesaling with the focus on using the cash from each deal to...

    3 - Improve your credit by paying down your bills.  The first bills you payoff should ALWAYS be the one that have corresponding monthly bills.  This accomplishes 3 positive things:
    1 - Eliminates that debt, which improves your DTI ratio
          2 - Eliminates that payment, which improves your credit
          3 - Frees up cash used to pay that monthly payment for use on a different MP

    4 - Continue to Wholesale to accumulate cash to invest with.  This, joined together with the improved credit, will get you moving into deals.

    If you focus, and don't get "distracted by shiny objects", and stay the course, can take very little time to accomplish.

    3Reply
  • Mark Elliott
    Investor · west seneca, NY · Member since 2014 · 376 posts · 211 votes
    10y

    all very good advice. add to that a trip to www.annualcreditreport.com. by federal law, you are entitled to one free credit report from all 3 agencies each year. this is where you can get it. and, yes, it is free as opposed to the free credit reports websites which are anything but free. in this website, you can dispute any negative information that you do not agree with. many peoples credit report will contain things that are not theirs. these agencies are NOT accurate by many means. they mix up stuff with people with similar names, close social security numbers, etc. go to the website and check things out, you can improve your score easier than you think. and, by all means, please accept and use the advice of the people who have answered you back prior to myself. it is good advice

    1Reply
  • Jim Shepard
    Investor · Edwardsville, IL · Member since 2015 · 432 posts · 481 votes
    10y
    I would suggest reading some of Dave Ramsey's books. If you can't keep your own house in order you shouldn't be trying to be a landlord. Work on your own finances for a few years and then revisit REI,
    3Reply
  • Linval T.
    Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Daaimah Brown

    Welcome to the vibrant BP community. Yes, you are getting some frank or for that matter brutally honest feedback, but, at times the truth is good medicine.

    Clearly, you are not ready for prime time in the REI environment, but, you can use these candid comments to right your ship and be read to set sail in the future.

    Below are some links to get you prepared for entry into the REI arena.

    https://www.biggerpockets.com/renewsblog/2015/05/2...

    https://www.biggerpockets.com/renewsblog/2015/06/0...

    https://www.biggerpockets.com/renewsblog/2015/07/2...

    https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)
    2Reply
  • Franklin Romine
    Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
    10y

    @Daaimah Brown

    Are your friends in the same shoes as you...?  If so, find some new ones...

    The juices started flowing for me when I founded/created a new mastermind.

    Frank

    0Reply
  • Ryland Taniguchi
    San Francisco, CA · Member since 2015 · 786 posts · 717 votes
    10y
    Originally posted by @Daaimah Brown:

    Where to start, how to go about getting into first property this way? Suggestions? Need to know (i.e. research I should be looking into)...

    Types of programs, properties and strategies. None of my own money? What are these portfolios for hard lenders?

    Go on details count :-)

     Start by acquiring the right mindset. Read and listen to Darren Hardy, Jim Rohn, Ralph Waldo Emerson and Napoleon Hill. You will not be successful regardless of what you know about real estate.

    Success as a real estate investor is more about who you are. Do you have integrity? Most people do until 2008 happens and then they walk from their investors. What will you do when s*** hits the fan?

    Do you add more value than you ask in compensation? Successful people always give and add value first and know that Emerson's law of compensation will repay in kind. Hustlers won't be around very long in real estate. 

    Do you take care of your sellers? I always want to feel like I left the distressed seller better off than before I met them. I don't want to "steal" their equity. Always look for the win-win.

    2Reply
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