Don’t know anything about real state. Livingpaycheck to paycheck

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Don’t know anything about real state. Livingpaycheck to paycheck

Jesse Robert Zamarripa III

Hanford, CA · Member since 2019 · 13 posts · 3 votes

Need help and Going broke. Don’t know anything about real state

Any tips, investing and or buying/ flipping houses ?

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Jon Schoeller

Flipper/Rehabber · Charleston, WV · Member since 2016 · 172 posts · 126 votes

Hello Jesse. This may be some unsolicited advice, well I guess not as you asked but investing is not something you should do while you are going broke. I would get your finances in order first and then revisit real estate investing. That is just my opinion though. I wish you luck either way.

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Joel Fine
Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
7y
You say you have a steady income but it all goes to pay the bills. Fair enough. Next step, make yourself more valuable. Solve problems for your boss (or your customers). Develop new skills. Eventually your compensation will increase to match your (increased) value. Or you can get a new job. It won't be easy but it's a way out & up.
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Jesse Robert Zamarripa III
OP
Hanford, CA · Member since 2019 · 13 posts · 3 votes
7y
@Jeff Berry
Wow. Mind blowing @Jeff Berry! Words couldn’t justify of my appreciation. I really do appreciate your time and advice. I promise you I will not give up! Thank you, Jeff Berry.
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
7y
@Jesse Robert Zamarripa III,
I'm a bit of a contrarian. While there's a lot of good info for you here so far, here's a piece no one has yet mentioned ...
Since you have no resources of your own, you're going to need to learn how to meet and attract people who can help you.
I didn't see anything in your BP profile about where you are - remaining "anonymous" may work against you - but there should be some REIA groups you can tap into. There you will meet active investors, possibly even contractors, builders and more.
Most importantly, you'll very likely meet potential money partners - people who will invest in your deals if you can show them that you know what you're doing, how their investment is protected and where their profit (and yours) comes from. That means you'll need to learn how to analyze properties to find profitable deals and how to structure deals to everyone's benefit.
I'm also a strong proponent of investing in education. Most BP'ers will pooh-pooh that because they've been burned by "gurus" or know people who have. Look me up on Facebook - that's all I'll say here. Even the most successful people still invest in their own education.
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Michael H.
Rock Hill, SC · Member since 2015 · 104 posts · 209 votes
7y
I used to be paycheck to paycheck but now I am direct deposit to direct deposit.
In all seriousness, you need money to successfully do real estate. I would recommend finding a second job/side hustle and build up some cash reserves and then you can invest. Don’t start in this game undercapitalized.
1 Reply
Bob Anthes
Rental Property Investor · Port St Lucie, FL · Member since 2019 · 150 posts · 79 votes
7y
@Jesse Robert Zamarripa III join a local Real Estate Investment Club. You can find them in most cities. They are also listed on meetup.
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Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
@Jesse Robert Zamarripa III

I read all the comments here, and I have some news and facts for you (don't fall asleep on me now)

According to the Modern Wealth Study (May 2019) done by Charles Schwab, 59% of Americans live from paycheck to paycheck, and 1 in 5 American don't have a dime saved (that's 20% of the population).

So, you might say, well Ola, thanks for the "awesome news" 😒, so what?

Well, you fall into this category and guess what you have company, 177,000,000 American are on the same boat as you. Now, the great news for you is that you can get out of that boat quickly if you so choose to!

Now, many have said that you should get your finances in order and there is some truth to that. However, many people actually started their journey from being broke to getting their first deal done with no money down through a variety of REI strategies-your job is to find those strategies through diligent study.

Now, for you to join the cohort of the country who invest and save their money, you need a new way of thinking and a new discipline and approach to a life-your job here is to distort the lens in which you've seen the world up until now.

First, and to be completely blunt, I thought your question was a bit passive: ask the questions and you guys feed me with answers.

For you to be successful in any entrepreneurial venture, REI included, you need to appreciate the level of grit and discipline involved.

Start by challenging how you see life and what are self-limiting beliefs are holding back. Remember, the more you tell yourself you are living from paycheck to paycheck, the more your brain is eavesdropping and registering that and making it your reality. What we focus on grows!

Flip that statement to some questions:
- How can I stop living from paycheck to paycheck?
- What someone in my situation done to get out of this cycle?
As you start to get answers, then go to work, ON YOURSELF. Don't skip this step!

I am more than happy to give you 30mins of my time to chat with you over the phone.

Good luck.
6 Reply
Andrew Lawhorn
Rental Property Investor · Sonora, CA · Member since 2017 · 78 posts · 25 votes
7y
@Jeff Berry These are some great steps to get on track with starting with little to no money with real estate. Awesome advice!

Originally posted by @Jeff Berry:
@Jesse Robert Zamarripa III - I hear it all the time. Someone asks for help to get started and as investors we are here to help in anyway we can.
It is true you have to know what cards you are playing with.
1). Figure out you WHY. Why do you want to invest in real estate? Not because of the money but something much bigger, what is that to you?
2). Make a budget and a personal financial statement, its probably going to be ugly in the beginning more like showing you how much debt you truly have, IF, you take a hard look at yourself. - There are examples in the file section of BP or message me for some examples.
3). Read as much as you can on the topic of Millionaire mindset. You have to think big to achieve big. - Pretty good selection on BP website or local library.
4). Listen to podcasts instead of the radio or watching the game. (This was the most difficult for me in the beginning as football is life). - There is a pretty good selection on BP
5). Browse through the information on BP, you will be amazed at the amount of information available for free. And when you get your finances in order to spend a little extra there is a ton more information as a Pro member.
6). Attend local REIA's in your area. Get around people doing what you want to do. Most first meetings are free to attend. - You can find them on BP website or a meetup like website.
7). Get educated in what it means to invest in real estate, first! - A ton of material on BP website.
It is true that you cannot invest in real estate without knowing where you are financially and correcting any of the discrepancies that are in need of attention. How can you get your finances in order if you were never taught what that means. Do some basic math to figure out what you are working with and develop a plan to get you to your why.
But that is what is truly great about investing in real estate, if everyone would just educate themselves on the topic, it really is that simple. Simple, but not easy!
My recommendation, follow Uncle G., Grant Cardone everywhere you can find him. Tune into BP podcasts and the free Webinars that are given weekly. You will begin to realize what you have to do in order to invest in real estate.
Good luck! Stay positive!
Jeff

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
7y
@Jesse Robert Zamarripa III as others have said fix your finances first. However you can be learning about real estate and studying your market so you are prepared when the time is right.
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Brent Paul
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
7y
Are there any local contractors you can work with for some side income?  It may possibly get you in the door somewhere.  Being you already have some experience you might try that and see where it leads. Working a 2nd job while having a family sucks, but if the bills are falling behind you do what you have to.

But I would get your finances in order first. Trust me when I say that not having money in savings when owning a house spells disaster.

Build up your savings to a minimum of 3 months monthly expenses. Both my dad and his wife lost their job the week of thanksgiving. Thankfully they had 6 months of expenses saved up and were able to make it through just fine.  They depleted some of it while applying for jobs, but had enough leftover.
I got in over my head with my very first house and lost it to foreclosure.  I wanted a house so bad and I made a poor choice to buy something that stretched money way too thin. It hurt to have to move me and my son back in with my dad. Don't do what I did. And it Sank my credit over 200 points.

My current house I put in over 3k in repairs on things that broke in just the first year. And now I need to put in another 7k for a new roof. Thankfully I had the money in savings to cover all that.  If I didn't honestly I don't know whatI would have done. Probably taken out an extremely high interest personal loan at the bank that I would have regretted.

While you are in the process of figuring out your finances I highly recommend pulling your free credit report at annual credit report.  Read that over good and dispute anything that is false. A good friend of mine went to get a house loan only to find out someone else had a large loan in his name. It took 4 months just to get that all straightened out.

Keep your credit card balances low if you can and make sure to pay your bills on time. Those 2 things will have a huge impact on your credit score. It took me a long time to build mine back up from sinking to 500 then back up to over 800. If you need any help with that just let me know.
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Jesse Robert Zamarripa III
OP
Hanford, CA · Member since 2019 · 13 posts · 3 votes
7y
@Brent Paul
I appreciate the wise words and you sharing your experiences with me. Thank you, @Brent Paul
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Account Closed
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
7y
Crime does not pay .. real estate does!

Jessie Zamarripa, 25, on suspicion of possessing marijuana for sale, possessing marijuana plants; theft of utility services, and conspiracy. His bail was set at $150,000.
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Armel BayotPro Member
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Jesse Robert Zamarripa III There are 2 school of thoughts that I believe in . Dave Ramsey's baby steps and Uncle Grant Cardones make more money. I'd focus on making more money by being very good in what you're doing ( work your tail off) , pay your bills , start saving and then start REI.
Hope that helps .
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Shannon Smith
Forsyth, GA · Member since 2018 · 25 posts · 30 votes
7y
@Jesse Robert Zamarripa III
Look into house hacking if you have not already. I wish I had taken advantage of this method back when I was getting started, but I didn't know what I didn't know. As an owner occupant you only need a small percentage down versus the 20% required for most investment properties. If you buy a multi unit (up to 4 plex to use FHA loan) rent the other units out and have those units cover the mortgage and you benefit by living rent/mortgage free. Save the money you would have normally spent on rent and any additional cash flow to give yourself reserves for when vacancies and maintenance issues come up because they definitely will.
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Jesse Robert Zamarripa III
OP
Hanford, CA · Member since 2019 · 13 posts · 3 votes
7y
@Armel Bayot
Armel! I really appreciate you!
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Account Closed
East Coast · Member since 2016 · 51 posts · 44 votes
7y
@Jesse Robert Zamarripa III
Go to bed early, rise early, pray, go to work...listen. Wash, Rinse and Repeat. Don’t take uncalculated risks but don’t give up either. The worst thing to do is go into debt to solve a financial problem. Look for better opportunities and then leap, but bootstrap everything—meaning let your ideas generate the resources for the next steps.
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