so today I resolved to begin investing in real estate. I started out positive and I'm trying to maintain that positivity. I'm hoping to make a career out of investing in real estate so that I can achieve my dream career of actually remodeling and flipping homes you know doing all the labor involved regardless I have no money to start with my credit score should be better and is getting better I'm working on that heavily. What I need to know is where I should start I have not made a sale I do not own property and I have no prospects yet like I said today literally begin my journey so please help me
There is a ton of articles here and podcasts to start with
Welcome, and congrats on getting started! I recommend you find yourself a few local RE investing groups. Go to all of them, talk to people to learn what they’re doing to invest and find out what ways you can help them do what they do. The relationships you’ll make by doing this will be valuable and it will give you knowledge from people who are actively investing.
Aside from that keep working on your credit score and work on putting some money away.
Well I should say that, since I'm new I don't have those connections, but I'll look into them of course. Also, as far as credit and money are concerned, I don't have much for either now and it'll be a long while before either look much better since my credit is going to require the money to fix.
Bottom line for me is this, this REI game is all about using OPM.
Question one: do I form an LLC FIRST, like before anything else's?
Question two: how do I secure financing from a bank as an investor without money? Do I set up a NOI sheet with all the breakdowns and hope they roll with it?
Still new, if the questions are rookie... just roll your eyes.
Congrats on the start of your journey!
With no money, no experience, and ify credit, I would start with the credit to get it to a minimum FICO score that will allow you to do a house-hack, which is when you purchase a home for yourself, live in it for the required amount of time (usually 12 months), and then move out of it in favor of renting it out. Then doing it again.
Do you have a stable job with decent income? Go to a finance calculator to see what your current income with qualify you for when it is time to purchase. Those are the houses you will search for when it is time.
Lenders have first time home buyer programs that may assist you with a down payment, and many contracts can be negotiated for the Seller to pay your closing costs. You will need to have SOME type of savings in order to show reserves and/or have any funds for closing costs and/or prepaids that are not covered by the Seller's contribution.
In the meantime, I would open up an account with a local credit union. Establish a relationship with a local banking source will help you when it comes time to prequalify for a loan, and they have more flexible guidlines for you.
Pay off, or negotiate a settlement for your most delinquent credit accounts. You cannot have any delinquents on your credit report when starting your home purchase. Then, any open accounts need to be kept in check, paid on time, kept at a low balance. Do not open any more CCs. Use what you have now to clean up.
See, now that was helpful. I've been planning to house hack even before I knew it was an investor trick. And again with credit, I am doing everything to settle all accounts(by gods grace keeping 2 out of collections or delinquency). I will qualify as a first time buyer when I get my first house.
Is Multi family my smartest search? FHA vs USDA? Any suggestions?
Oh, and I do have steady job. I'm salary so budget is never an issue.
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