Getting started with $30k and no credit history

16 Replies

Hello, I'm new here but I guess the title says it all. I am 19 years old and I have about $30,000 to invest in real estate. I have no credit history and I'm wondering where to begin. Real estate in my area is fairly reasonable, around $110/sf. What are my best options? Should I save more money first before I start looking at single family homes? Thanks for any help :D

Read, study, learn. You may need to establish a credit history. Not with credit cards, but maybe borrow a few hundred from the bank and pay it back on time, for starters. What's your work history? They'll look at that, too.

Yeah, thats the thing too, I have virtually no work history. I am self employed on the internet and my income fluctuates a lot. I will probably just need to save up more money to do anything productive in real estate. :roll:

When you have income fluctuations is enough still in your account to pay a mortgage should the income slow down temporarily? If you can manage that or hold onto some funds for rainy days when you have a good week you should definitely look at buying a nice multi to live in and rent the rest out. And make sure you buy at a big enough discount that you can live almost rent free when its fully occupied, that way your income won't be quite so necessary and can be held for bad months when you have vacancies, etc.

don't think like a poor person - poor/middle class people - "save" their money.

you want to "invest" your money wisely.

"invest" is a broad term that means many things.

one of the things it means is:

have an account with money in it to manage and mind your business.

some of it should be used to make some "safe" investments.

some should be used in a way that makes "it" (the money) work for you!

saving money does nothing. with inflation increasing and taxes - you're money is earning .5%.

you might as well go out and spend it on cheeseburgers and fries.

learn about investing and how to make your money - WORK FOR YOU.

rather than you working for money. money isn't really real.

what is real is a contract agreement that brings you (or your business) money that you can further use to compound through other agreements that make you/your business more and more money.

the way to wealth/financial success is not "saving"...ever.

think: HOW WILL I INVEST THIS MONEY?

Good advice, and thats exactly what I would like to do. I have half of the money in gold coins which I bought as an investment about a year ago, they are starting to go up in value but I would rather get out of commodities and go into RE. The other half of the money is in a money market account, earning 5% or so, which is only 2% after inflation of course...

Well it's great that your starting out early, age doesn't matter at all it's all in your drive and your goals. I have several ways I can help you learn and earn in the Real Estate Business.

mrossen,

remember the NUMBER ONE RULE TO INVESTING.

BUY LOW

SELL HIGH

it's a simple strategy - now you bought gold with some of your money. i'm guessing, but if it's cost now is $600 per (whatever they measure it by)...that's not necessarily low. unless you or other people speculate that it will go to $16000 - if you want to make any money.

if you bought when it was $50 - now we're cooking. even now you could sell and make out nicely.

to me, you've got to have bookoo dinero to invest in commod's like that.

but with real estate - you don't need that type of cash - because A BANK WILL LEND IT TO YOU.

i'm not advocating you take all your money and invest it in real estate. i'm not advoacting you do anything. all i'm pointing out is there are significant advantages of rei.

Start building your credit by getting a secured credit card from Wells Fargo. They don't have an annual fee and you can get your security deposit of around $500 returned to you in 6 months. This will start building your credit.

mrosson:

Like you, I also reside in the Pacific NW. The housing market is on the expensive side compared to the rest of the nation. Only markets that might be more expensive is Bay Area; Southern California; New York City Area. Also, foreclosures in the Seattle Area are difficult to come by for the following reasons:

a) Seattle has a robust economy
b) Highly knowledgeable homeowner base
c) market flooded with savvy investors

Not to say that distressed properties cannot be located in this region, but you have to do your due diligence; require lots of research.

Based on the info you provided, it sounds like you have the necessary funds to cover appraisal fees, order title reports, and cover additional loan fees, however, you just need to find a hard money lender that can fund your project. Only problem, you will have a difficult time finding properties in the Seattle area with an LTV between 60-75%.

Good Luck!

How can you be just 19 and have 30 large? Did you rob a bank? When I was 19 I usually had enough for bus fair but that's about all.

What I would do if I were you is do a house flip. By a crappy home in the best neighborhood. Do ultra cheap wal mart cosmetic updates and then flip it for a profit.

If you can make enough then use your total amount as a down payment on an apartment building. That will give you enough money to not even have to work if you don't ever want to.

I applaud you for having the desire to invest and be smart about your money at such a young age rather than wasting it on going out, cars, and other lusts that will not make you money.

You do need to try to start establishing some credit. Possibly apply for a credit card and use it a few times every month, just have discipline and do not go charge happy. Or if you need a car buy a inexpensive used car and finance it. You will have higher interest rates but get something cheap you can pay off quickly, this will probablyy help the most. Always make sure you payments is on time too.

Now back to wanting to invest right now, it is totally possible. You can equity share with someone. Basically you have enough cash to put a down, and there is someone out there with immaculate credit but no cash. So you two have to find each other, make a legal agreement and also agree on where and what you want to buy. There are risks especially if you deal with strangers, so be extremely careful. I would first ask an immediate family member such as your parents or a older sibling if they are interested in an investment.

Good luck

No credit is better than bad credit. You might not qualify for an investor loan, but skip the high interest. Buy a home and live in it. Countywide and other lenders will work with you, I'm sure. Hold back what you can in savings or save it up again and buy another house and move into that--then turn the first home into a rental. Live in the first house 2 years, though, and sell within 3 years of moving out--and don't sell the house you're living in at that time. You'll be able to take the tax savings on your first house because you've lived in it 2 out of the last 5 years.

There...a good start on a 5 year plan.

Wade