Freehold, NJ · Member since 2021 · 77 posts · 43 votes
I'll try to be brief, lol.
I'm trying to get prepped a bit before seriously looking for my first deal (wholesale or flip).
Background:
I cannot get any first time home buyer breaks and can't house hack. I have no high value assets. My credit is garbage (had to do bankruptcy last year) and I only have access to $10K (assuming I can roll my 401k into an SDIRA. If not, I only have $3K). No family or friends who have (or are WILLING, lol) to lend.
Even assuming the 10k, it's nowhere near the 20-30% down payment needed for hard lenders.
Add to that, I'm in Central NJ so nothing is cheap.
I've read about assigning contracts and all that ron legrand-type stuff, but it all seems scammy if not illegal, and I refuse to run a dishonest business.
There has to be a way to get going, but right now I'm at a loss. Any advice or guidance is appreciated.
@David Rosenhaus Read the book on "Long Distance Real Estate Investing" by David Greene. Then invest where it makes sense. Much easier to get started this way.
I live in Phoenix, AZ and chose Durham, NC to buy two duplexes getting started. I used a HELOC on a primary residence and pulled off the BRRRR method. Much easier to buy something out of state and will make you a better investor by forcing you to build systems/processes.
I would keep networking here and save as much as you can and then find a partner who does have good credit who can help you with the purchase. Also, now wouldn't be a bad time to get a realtor license because you will need a side hustle or a second job to help you make down payment. Becoming a realtor will also help you find off market deals and you can be the realtor for all your transactions.
@David RosenhausI would agree with many comments on this thread. It is hard to start from the position that you are in. Despite what many will say, in my experiences you will need to have a strong balance sheet, be credit worthy, and bring value (IE experience) to find quality partnerships or invest successfully in RE. My advice would be to save, rebuild your credit, build your knowledge AKA "value" and develop partnerships. Although there are deals to be had in this market today, there will be deals in the next year or two as well. Best wishes for future success.
I’ve been able to somehow weather the storm in NY and have been reading every BiggerPockets book published to get a start on my first house hack preferably in Florida even though I know it’s a sellers market.
I had a traumatic brain injury and after all is said and done I have about 60K to invest (and 30K in bank) but I don't have a W2 or 1099 to show the bank. I haven't owned a property in over three years so I should be OK for an FHA loan on a two family home.
I spoke to my financial guy out there and he said if I haven’t lived in Florida for at least a year showing income that I wouldn’t be able to secure a loan from a bank. My credit score is an 836 and I’m tired of this rat race, if you knew what I’ve been through you’d probably buy me a house haha
Anyway, does anyone have any positive info for me because I sat on LinkedIn today and applied to jobs I just don’t want all day in Florida so maybe I could land one and pay rent for a year...but I keep thinking there’s gotta be a better way!