Hello REI world! I'm a regular Joe who has caught the entrepreneurial bug. I work not a 9-5 I work crazy hrs at times the of year, up to 17-18 hours a day in some cases, and I've heard you can't really wholesale if you don't do it full-time, which is my choice of entry level investing. if that's true what type real estate investing fits my situation?
I did rentals when I worked full time. You just have to plan to pay a property manager and put that into your numbers. It is generally 8-10% of the rent.
Then find a good real estate agent who works with investors or has their own investment properties. They can send you properties that are going to match more of what you are looking for and send you rent comps as well as market comps. Save you time.
@Leah Stuever Thats just what I was thinking of doing how do I come up with the cash to purchase property is a looming question what's the different ways of raising capital for a down payment?
There are a lot of different ways. I still hear of new types of loans reading around BP and FB
If you qualify for a traditional loan, there are a lot that are 2-5% down.
If you are looking for multi family, there are some loans that require low amounts down and use the rent rolls instead of your monthly income.
Private loans are also negotiable regarding capital.
If you are talking about just getting the $$. Saving money every month is a must either way (read Rich dad poor dad if you have not already). Cashing out any retirements that you may have (if you feel that is wise, investing is always a risk). JVing with family or other investors that you may know also might help.
If you are living check to check, the best investment to start with is a savings account.
@Eric Smith Just do it the old fashioned way, save up your money. With any strategy you decide to pursue you will either need money or access to it and no one is going to want to lend you money until you either have some yourself or you have experience in the real estate investing field.
Save up money for your first down payment, purchase your first investment property and doors will begin to open up for you.
@Eric Smith congrats on catching the bug! i agree with what everyone has said here for the most part. however, i love owner financing. if you can find someone willing to owner finance a deal and get them to agree to a low down payment, then you have a lot more options. i have taken out loans in the past for down payments on owner financed deals. it’s a risk, but if you can cash flow well
enough and get your finances cleaned up before you refinance then it’s a viable option. don’t sink yourself with too many obligations. know your numbers and use worst case scenarios.
happy to help. send me a message if you have other questions.
@Eric Smith spend less, earn more, and save. REI requires money so you have to get some money in the bank before doing much. Yes, some people have made it to great heights while starting with no money of their own, but these cases are very few and far between.
If you are barely getting buy, I would sell the car you can’t afford, save up $20 k and buy a duplex where the rent will cover most if not all of your payment. That should free up more cash to pay off other debt and keep investing. Research house hacking.
Living paycheck to paycheck is a lifestyle, not a temporary situation that can be fixed by making more money.
Take a close look at every dollar you spend and cut those things that are less important than your real estate goals.
Real estate is fraught with expensive surprises. If you don’t have a decent savings to deal with them quickly, you risk losing rents and open yourself up to expensive lawsuits.
@Taylor Angel good advice I appreciate it
@Craig Jeppesen I will do some research on the house hacking thanks
Welcome to BP Eric,
For me, I have always rolled with the punches. Take the cards I’m dealt and make the best of it. I still work a 9-5 job, and technically I’m living paycheck to paycheck. But instead of living paycheck to paycheck with no houses, I have acquired a few in a couple of years. It’s not what I have now that matters, it’s what I’ll have 20 years from now. I live the same as I did before I invested, I just work a lot harder now. Weekends and “me time” are spent working on a house.
But as @Russell Brazil mentioned, your savings account is what matters most now. Control and change your spending habits, the rest will come if you are dedicated to REI.
@Brian Ellis Thanks for the advice Brain your absolutely right about that that's the plan to become financially free
@Russell Brazil check to check its kinda hard to save anything... “hence check to check”
@Eric Smith You’ll want to look up Virtual wholesale and look for Virtual Assistants.
@Jonathan Miller I appreciate that I will try that out