What have you sacrificed for your down payment?

What have you sacrificed for your down payment?

Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes

I have heard a lot of posts about how to buy real estate with no money down, low down, first time buyer program, etc. All these paths are possible, but they are financial decisions that you are now just realizing when you want to buy real estate. If you have saved money from the start, meaning when you got your first job, then you will be in a better position.

Personally, it is either earn/save more money or cut expenses. Here are my cost cutting sacrifices.

1. My driving commute car is a 1995 acura integra that was a hand me down from my millionaire sister who drove that integra for 10 plus years.

2. I go to goodwill to buy my work clothes. Don't knock it, I found Georgio Armani suite for $50. Retail is $2k.

3. No Starbucks coffee. I drink work coffee provided for FREE.

4. limit my lunches at work to about $2 a meal. Sometimes less as work has freebies from time to time.

5. Cut my own grass lawn, as gardener raised from $40 to $80 a month. I had gardener for 12+ years.

6. Buy gas at Costco as seem good quality and lowest price around. But doesn't that Costco card cost money? Yes, but I look like my brother, and group together to get 2% cash back card that pays for itself, and some back at end of year.

7. I buy Nikes running shoes, at the outlet mall. Can throw in washer, air dry, and look like new again.

8. I buy and sell things on craigslist. Once found kitchenaid built in refrigerator for $100, and re-sold for $900.

9. Offered ride shares on Craigslist for gas money. Kills the time on long trips and helps pay for gas.

What have you sacrificed for saving down payment?

Terry

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Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
7y
@Terry Lao No joke, I have eaten peanut putter and jelly sandwiches, every day, for 3 years. I see guys that go out to lunch or go to subway every day and they joke about my pb&j. I laugh with them on the outside, but laugh at them on the inside. I clip every grocery coupon available and only buy things on sale. I've worn the same work shoes for 3 years (although they have a couple holes in them so I may be splurging soon). Short term sacrifices for long term success....
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  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    @Monique Rene Coates If you want to learn more about real estate in Rhode Island you should come to our local real estate group meeting. Third Thursday of the month at the Crowne Plaza in Warwick. 6 pm. It's a $10 fee to get in but if you honestly can't afford it I'll pay your $10 admission the first time. Actually, I could be wrong but maybe the first meeting is free. I'll be happy to help and give advice as well. Good luck.
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    Whatever you do it has to make sense for you.  First,  I choose an education in something I could make a living at and have maximized the use of my education.  (I paid for it with student loans, working, and living home).   When I started working I choose a higher paying job in a bad area and  rented cheap apartments and paid off car loans as soon as i figured out how much they cost me...  My first house was literally the worst house in the area and for the down payment I had my account with the bank financing it so we negotiated the down payment, it was more then I wanted but less then they originally wanted. (the loan was too small to be sold). 

    Now I  shop at consignment stores for furniture and will go to the salvation army/ consignment and goodwill for everyday stuff.  Not to say I don't go to a department store just that where it makes sense I buy secondhand.  Cars we buy the best used cars. That said it isn't a sacrifice, I like PBJ sandwiches, consignment shopping, and used cars to some extent.  I sacrifice better vacations for bigger down payments but now I am in a different place in my life. 

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    7y

    @Frank Patalano

    That's a very nice gesture to pay for someone's admission price for meetup.

    My heater furnace went out last week and it was the original from 1987. I could only get furnace, but decided to replace AC and replace ducts. Doing all at once would save money down the road. I got 3 bids, and got the company I wanted to match one of the bids. 

    Also, I will go with 12 months free interest, If total balance of $13k is paid off in 12 months. I can actually pay off all at once, but why not use someone's money and spread over 12 months.

    Terry

  • Consultant · Providence, RI · Member since 2015 · 117 posts · 37 votes
    7y

    @Frank Patalano that is very kind of you to offer. Thank you, I do appreciate it!

    As much as I would love to go and to meet you and other RI investors, I am also without a vehicle, fun fun! Getting to Warwick is not on my priority list for LYFT or UBER right now due to cost.  

  • Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    @Monique Rene Coates if you're based out of Providence I regularly meet new investors for coffee at various locations around the city and would be happy to meet you sometime at a place which is convenient for you.

    I've met a number of folks from here on BP and the investor group Frank mentioned, and from what I can tell people seem to find it helpful or at least enjoyable :)

    (And I'll be happy to buy)

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