Investor · Saint Petersburg, FL · Member since 2016 · 14 posts · 0 votes
everyone my name is Chris from st. Pete fl and I'm just now starting to really pick up on the idea of real estate and very into me but my problem is that I am in college which I have student loans. I'm looking at different homes now to try to invest in,but my question is what is the very first step to start since I can't get a loan from the bank?
Investor · Knoxville, TN · Member since 2016 · 76 posts · 29 votes
10y
Start saving as much money as possible. Live on crackers and peanut butter if necessary.
Also, rent out any spare space you have on Airbnb. That's what I've done for the past year, and I've saved up about $10k. You can leverage this money for a hard money loan through an investor. (This is what I'm currently doing) They typically want what is called "points" up front. Which is typically 2-3% of the loan. And, they keep this. It usually does not go towards the loan. Then, they will want 7-10% interest.
Investor · Knoxville, TN · Member since 2016 · 76 posts · 29 votes
10y
Start saving as much money as possible. Live on crackers and peanut butter if necessary.
Also, rent out any spare space you have on Airbnb. That's what I've done for the past year, and I've saved up about $10k. You can leverage this money for a hard money loan through an investor. (This is what I'm currently doing) They typically want what is called "points" up front. Which is typically 2-3% of the loan. And, they keep this. It usually does not go towards the loan. Then, they will want 7-10% interest.
This may sound weird considering the forum, but you should concentrate on school right now and graduate with the highest GPA possible, rather than spread yourself too thin too early.
This will pay you dividends down the road, even though it sounds uninteresting right now.
The Real Estate market will wait for you. Land a great job with your college performance and you'll be able to have the best of both worlds in a few years.
Sincerely,
Chagrined college grad (2.74 GPA) who wishes he'd applied himself better.
Bedford, TX · Member since 2010 · 9 posts · 3 votes
10y
Starting out...and continuing on...is a series of overcoming obstacles. There are many: mindset, money, market, legal, which type of solution goes with which type of problem, etc. That is why I am a fan of putting together a business plan before you start. Doing this forces you to think everything through first. You will make fewer mistakes, make more money and I think save time in the long run.
Flipper/Rehabber · Fairfax County, VA · Member since 2016 · 15 posts · 6 votes
10y
I've never heard that suggested as a first step, @JT Taylor, but that's a great idea. Just doing the math will really give you a better picture of what's really involved.
Another idea is to use your Summers to "intern" with a very experienced and active investor who is doing the kinds of things you want to do. That person might be willing to partner with you at some point, where they put up the money and you get the work done (you don't have to do it yourself!), then you share the profits in some way. That will be a great way to begin to have some down payment money for your own property sometime after that. Good luck!