19 | 5k | Good Credit - Where do I start?

92 Replies

@Ryan Valenciano That sounds great! I've been trying to find more books to read involving specific sections on real estate and house hacking I'm very interested in! IF you have any more recommendations I'd love to hear them!

That sound perfect, would this tie into house hacking in a way? If I were to purchase more than one unit and fix up both would it be better or should focusing on one at a time be more beneficial. Thank you for your advice!  

@Eric N. Thank you for the advice! This First time homeowner program sounds fantastic, I'll be sure to put it into my plan. Financing is one of the biggest concerns of mine considering what I have to offer but this seems like a great place that I would be able to do something with. I hope you the best and I'll make sure to look into the financing at first time homeowner program! Thanks!

Originally posted by @Christopher Raiz :

@Eric N. Thank you for the advice! This First time homeowner program sounds fantastic, I'll be sure to put it into my plan. Financing is one of the biggest concerns of mine considering what I have to offer but this seems like a great place that I would be able to do something with. I hope you the best and I'll make sure to look into the financing at first time homeowner program! Thanks!

I believe most (if not nearly all) mortgage lenders have a minimum $100K requirement for a home loan, so you need to get your income up ($35K or above per year) before you can take advantage of the most first time home owner programs. There is one particular USDA loan which will allow you to buy home with lower income than yours, and it comes with government subsidy, but I wouldn't recommend it to you. It really is for people who can't get a home any other way (elderly, on fixed income etc), their guidelines are strict (most home sellers don't want to deal with it) , and worst of all whatever subsidy is paid towards mortgage doesn't help to build your equity, but must be paid back like a lien once you sell your property.

So, try to raise your income first (drive Uber/Lyft part time after your regular full time job, it should add to at least few thousands in a year, and look for admin/entry jobs in Craiglist and Indeed which pay at least $30,000). This will allow you to qualify for $100K+ traditional mortgages, so you can get your pre-approval letter and start working with a real estate agent to get your first home.  Good luck.

@Christopher Raiz what I suggest you do is if you set on investing in real estate. Keep working build up more cash get two years of income and for now invest in reit stocks while you wait.

@Christopher Raiz In terms of what areas of construction, I don't think it really matters. Hopefully it's something that you enjoy or find interesting - try not to do something you hate :P

I recommend involving yourself in as much real estate as possible. The more you know, the better.

@Christopher Raiz great to see you’re off to a great start, I wish I had the real estate bug back when I was 19, better yet I wish I had $5k saved up when I was 19. But I would say read Set For Life by Scott Trench if you haven’t already. When you do so it’ll lay out House Hacking for you. That would absolutely undoubtedly hands down be my recommendation from me to you. That is how I got into my first investment property and it has worked out wonderfully. It makes great financial sense, it created also a landlord on training wheels kind of scenario.

Otherwise, I would continue to read, continue to network, and continue to build that cash reserve, and certainly continue to build that credit. Cash is King but credit is certainly that Queen in a Chest match. Do NOT worry about where other people are and at what rate they are doing things. You move when you think you should. That does not mean it will not be scary or it will not be uncomfortable when you take that jump but do not base your moves and your decisions based off of other people’s current status. You don’t know how long it took that person to get to where they are or what it actually took them to get there.

It would be much more beneficial for you to look for a 100 properties and then finally find that one that makes the most financial sense and it be a great investment today and for the years to come versus closing on the first property you come across because you want to have a deal under your belt.

I hope this helps man, reach out if you need.

@Christopher Raiz I'm interested to know what your path is while you explore this area of investing! Like you I'm younger (21) but have only been looking Into realestate investing for the past few months. Since then I've listened to over 100 podcast, read several books, made a few (beginner) post on bigger pockets and have probably read every thread on here. Like the many others, I agree that 5k is not a lot to get started. Also being in school and having moved to a larger, much more expensive, city I thought was great for investing but really impacted my daily savings and spending. Set a budget you can save monthly and then find your buy in goal. Find out how much do you need to get started and work for that minimum plus a 10-20% buffer. My girlfriend and I have set monthly savings goals using the refrigerator method and have saved double each month that we've expected, despite moving. Then find out when you jump in, my goal is when my lease ends in April that I'll have a fixer upper SF home under contract and ready for us to move in and work on over the summer. Being in a college town were going to rent out additional rooms to friends who have already committed in exchange for cheap rent. Based on my projections we may even cash flow with us still taking up a whole room in the house. Save your money and find your strategy. Then when you hit the ground hit it running.

@Pat G. Hey i Just seen couple of your comments and I seen you you have a lot of properties in MI is that Michigan?

@Giovanny Garcia Hey! Thank you for the great advice! I'm ordering a few books now and that one is sure on my list. I'm currently building up some more cash and getting higher credit to invest into some REITs to have another source of income. I appreciate the life advice to keep at my own pace and worry about where I'm at rather than where others are. I'll be sure to reach out if needed, again thank you!

Hi Christopher, I am in Villa Park, IL and I go to a great group called WCRT Chicago.  You can check out wcrt.org  Meeting the first Thursday of each month in Elmhurst.  You should come and check it out.

@Yusuf Abdi Thanks for the shout out. Yes, that is Michigan.

@Charlotte Harrison Thank You for the kind words. Sure I can converse with you, not sure what I can help with but let's see what happens. Just PM me and we can start with that. 
What is the property that you are selling?

Originally posted by @Christopher Raiz :

That sound perfect, would this tie into house hacking in a way? If I were to purchase more than one unit and fix up both would it be better or should focusing on one at a time be more beneficial. Thank you for your advice!  

Yeah, it's basically house-hacking. If it's your very first place, I'd suggest starting with one. If you're doing a fix-and-flip, it's going to be more work than you think. You don't want to overreach. However, if you feel up to the challenge and get a good deal, you could shoot for a duplex. Make sure you get some decent roommates that understand parts of the house are going to be under construction from time to time. I made sure to fix up all the bedrooms in my house-hacking places before I rented them out, so at least there would be some refuge from dust.

Great answers here.  Christopher, I would consider doing a "Lease-option Sandwich."  You can read more about these online.  A great way to break in with little cash or experience.   

@Christopher Raiz

Either or.. partnership might be better as they can put in half the work so if you are away or anything? I’m away a lot as my job is on the road

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