New investor in southeast Missouri

8 Replies

I have been learning as much as I can while living and working full time at a camp in southeast Missouri. I am about to leave the camp, and move to Cape Girardeau. Looking to meet other investors to be able to meet and ask questions.

Also, any tips on jobs to look for for someone who loves learning and working with real estate? I have the awesome opportunity for a fresh start in a new place, and want to set myself up for success in REI, especially starting off at the age of 21.

Hi David. I'm an aspiring REI here in Jackson right outside of Cape Girardeau. Like yourself, I have been doing extensive research into the real estate investing potential this areas offers. At the age of 20 I work a full time job and am looking to enter into investing by wholesaling and rehabing part time and eventually progress into buy and hold real estate.

hey all, feel free to use me as a resource. When you’re starting out, especially in your early twenties you’re going to have a few issues so be prepared, I’ll try to answer as much as I can here so this may be a long post.

The first issues that come to mind is lack of capital. Real estate is expensive to buy and maintain. At the very least you will need a down payment.

If you’re starting out and not rich, have rich parents, or access to large amounts of capital your choices are limited.

Next is credit history, you’ll need to build strong credit cause you’ll most likely need funding, there are first time buyer loans available but they’re only if you plan to live in the house and not for investment properties and it has to be under 5 units, and will need to pass a litany of inspections and meet stringent criteria which means you’ll pay full price for it.

In addition to the capital to put a down payment, you’ll also need reserves in the bank, I think it’s around 3-6 months of mortgage payments.

You’ll also need to prove a strong work history and regular paychecks, if you haven’t been at your job long or have little/no credit history you may find it hard to get approved.

Don’t forget you’ll need to prove you make enough to make mortgage payments.

With all that being said, here's what I always recommend. Depending where you live homes may be under 100k, which means you can use an FHA loan to put only 3.5% down which is only 3.5k (not a big amount) rent may only be a few 100.

Fha loans allow you to get a residential property with up to 4 units for 3.5 down and the loan is designed for first time buyers or people that can’t afford a 20% down payment. You have to also live in the home for at least 1 year. If you can get 4 units the property can pay for itself and maybe put some $$ in your pocket.

Love there for the year, now that you built up equity you can refinance and pull that money out and invest in another property. Move out of your first property and rent out the unit you were in.

This is all very basic but feel free to connect with me, or ask f you got any other questions

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@Quentin Noah

Hey Quentin l, wholesaling is a very gray area and just starting out with no experience you could put yourself in to a lot of legal trouble. I'd suggest joining a few REI groups around your area, read everything you can and learn from an experienced whole sellers before setting out in your own. Depending on your state you could get in more trouble by doing this without a license.

My advice to both you guys is always get the salesperson license, it never ever hurts any opportunities and you can even negotiate your own deals and get a commission. Any friends or

Fam looking for a property could utilize you and you’ll get paid. You can never make too much money.

For flipping, you’ll almost always utilize a hard money lender, unless your family has the capital and trusts you with it. Hard money will usually want 20-30% down of the purchase price. Hard money is always short term and has high interest cause the money isn’t backed by the government.

You’ll need to be able to buy, rehab, clear any liens/taxes, market and sell within the window. It’s a quick way to end up in debt and trouble unless you know what you’re doing.

I recommend downloading meetup, go to as many real estate meet ups as you can and try to learn under an experienced investor till you learn it inside and out.

Just my 2 cents

@David Morad

Hello just want to congratulate you on your decision to be come a REI. Yes money is needed however there are many different ways of doing real estate. With wholesaling you need little to none this method may require a small fee as small as a dollar to a hundred dollars. This is called EMD A.K.A "earnest money deposit" this is used for two reasons 1. Is to ensure to the seller (motivated seller) that you are serious about this deal and also 2. it allows you time for "Due Diligence". As far a credit is concerned is it good to have good credit yes and I recommend that you work on improving yours if it's bad. However you don't need credit to do REI. Here are a few names you can look into. Scott Oots, Max Maxwell, BePolite, Tom Krol, just to name a few. Join a few Facebook group's.

@Quentin Noah

Hello just want to congratulate you on your decision to be come a REI. Yes money is needed however there are many different ways of doing real estate. With wholesaling you need little to none this method may require a small fee as small as a dollar to a hundred dollars. This is called EMD A.K.A "earnest money deposit" this is used for two reasons 1. Is to ensure to the seller (motivated seller) that you are serious about this deal and also 2. it allows you time for "Due Diligence". As far a credit is concerned is it good to have good credit yes and I recommend that you work on improving yours if it's bad. However you don't need credit to do REI. Here are a few names you can look into. Scott Oots, Max Maxwell, BePolite, Tom Krol, just to name a few. Join a few Facebook group's.

Originally posted by @David Morad:

I have been learning as much as I can while living and working full time at a camp in southeast Missouri. I am about to leave the camp, and move to Cape Girardeau. Looking to meet other investors to be able to meet and ask questions.

Also, any tips on jobs to look for for someone who loves learning and working with real estate? I have the awesome opportunity for a fresh start in a new place, and want to set myself up for success in REI, especially starting off at the age of 21.

 Welcome to the site Dave. I started in this business at 21 as well. It's a get rich slow game so your age is going to be huge. What I recommend is doing some house hacking with owner occupied loans while you're young without a wife and kids. Live in some duplexes or large homes while renting the other rooms and units out. Once you hit 12 months of occupancy move on to the next while replacing yourself with another tenant at the old one. This is a great way to string some rentals together with a relatively low cash outlay.

Hey Guys. I am an established investor in Cape Girardeau/Jackson area. I know David has reached out to me, but Quentin feel free to pm me on here we can get together.