What can i do with 12k savings to start investing

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What can i do with 12k savings to start investing

Joseph Amancio
Glendale Heights, IL · Member since 2015 · 2 posts · 0 votes

Im a 31 year old man wanting to get out of a daily job, i have so far saved 12k dollars, what can i do to start investing in real estate. preferably renting out properties. 

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Richard Bradshaw
Investor · St Petersburg, FL · Member since 2015 · 127 posts · 39 votes
10y

You could use FHA financing and buy a multi-unit property. You will have to live in one of the units. With $12k, a decent income and credit score, you could get a multi-unit for $150k (In my market at least).

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    10y

    When you say renting out property, do you mean a potential home you would own or like a leasing agent for a property management company?

    From a conventional purchase standpoint, $12k wont get you a decent home at all.  

    You might have better luck finding someone willing to offer owner financing and use some of your funds for a down payment. 

    Good luck

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
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  • KIMARD EGLETON
    Rental Property Investor · Louisville KY · Member since 2013 · 84 posts · 11 votes
    10y
    Look into owner financed deals. I would also join the local REIA to build possible Joint venture relationships. 12K and good credit is a good foot in the door. Good luck!
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  • Richard Bradshaw
    Investor · St Petersburg, FL · Member since 2015 · 127 posts · 39 votes
    10y

    You could use FHA financing and buy a multi-unit property. You will have to live in one of the units. With $12k, a decent income and credit score, you could get a multi-unit for $150k (In my market at least).

    1Reply
  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Joseph Amancio:

    Im a 31 year old man wanting to get out of a daily job, i have so far saved 12k dollars, what can i do to start investing in real estate. preferably renting out properties. 

     Hi Joseph,

    I would look for pretty houses in IL, and look at learning:

    1. Sub2 w or w/out land trusts (See Illinois Land Trust)

    2. Wrap around mortgages

    3. lease to buy contracts

    4. TICs Tenants in Common Agreements. 

    Getting licensed will allow you to buy on your own account as a principal or list the house and get a commission.

    Best of luck!

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  • Jeff Fairchild
    Portland, OR · Member since 2015 · 141 posts · 28 votes
    10y

    Brian do you have recommended books or a course to learn those things?

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  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    10y

    Do you own a personal property ? We got started with a personal property with 0% down. Once we got in and were comfortable with all the expenses we didn't need as much emergency fund and this was what we used to fund our first investment. From there we simply lived off one income and saved the others. Every extra penny went into our investment and we worked our way through our baby steps creating an empire.

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  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Jeff Fairchild:

    Brian do you have recommended books or a course to learn those things?

     I learned from my boss who had forty years experience

    Your first objective is to find a wonderful contract attorney, look at your REIA meetings for contract attorneys that work with Investors, not just agents and brokers

    I would also get my real estate license and learn CCIM real estate

    @Jay Hinrichs

    Is awesome who lives in Oregon

    1Reply
  • April VandeBergh
    Real Estate Agent · Portland, OR · Member since 2015 · 5 posts · 0 votes
    10y
    Elizabeth Colegrove Thanks for shrine your story! That's exactly what my husband and I are wanting to do. Congrats to you!
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  • John PowellPro Member
    Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
    10y
    I started with about the same amount, good job and credit. The route I took was to go get a construction loan to buy a fixer upper to live in. I did this at a small local bank. I bought this house at 50% ARV rehabbed the house then moved into it. This allowed me to turn my first house into a rental. I did all That with no money out of pocket. But having the cash gave me and the banker a comfort level during the rehab. I was able to get a Heloc on the rehabbed House and along with my saved money I bought two fix and hold houses in "cash" which has allowed me to move quickly. This had all been done while working a full time job and I have learned so much and feel a lot closer to being able to quit my job. Figured I'd share what I did when I was in a similar situation.
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