So I did my intro post about a week or so ago, I believe, and I had a great warm welcoming! Thanks guys. I can't wait to grow and learn from everyone!
Right now I'm wracking my brain at my possibilities, what steps I should take, and a good time line for myself. Right now I have no money, bad credit, and am currently in a rental myself. I have to resign my lease in August for another 6 month agreement.
What I'm thinking is I sign the lease and use the 6 months to save money and repair my credit the best I can. I may have to get another part time job until then, but I think it could work.
When the 6 months is up I start looking into investment properties. Hopefully a 4-plex in the near by neighborhood of Putnam, Ct. It's close to my family that lives in New England, the community is great and very involved, and has a great central location to other shopping other than just the town itself.
I was hoping that I would be out of here before August, but I'm not so sure that's realistic at this point. I guess I'm just eager to get out on my own and start my investments!
Anyways, what I'm looking for is any type of advice, whether it be towards my current plan or maybe something that might be a bit different. What options I should be looking at, other than just an FHA loan. What other things I might need to do to prepare for it all. I'm already learning a bunch from the forums!
Birddog or Wholesale to earn some cash; find a credit partner; definitely work on improving your credit which will take the longest... maybe co-wholesale a few deals if you can as well to earn some cash...
Since you may be looking for another/addition job, find a real estate broker who needs an assistant - a good way to earn money and learn about real estate at the same time.
@Roy N. Has good advice!
What do you mean by bad credit?
A couple of things you can do....aside from the above mentioned.
First figure out exactly what is causing the credit issue, and work on fixing it. There are many things you can do to repair your credit, "IF" you know what is wrong
Secondly you could do a lease with an option to buy, so find a seller that owns a property outright, and try and work out a deal with them...these are not easy to come by, and will take some work, but it is another tool, in the toolbox.
@Cheri Schaffer...welcome! I'm a newbie myself to REI, but I've been listening to podcasts and watched Brandon Turner's last webinar, so I have an idea that might work. Given your credit situation, it would be difficult to obtain conventional lending...Brandon is a big advocate for creative financing, so definitely check out the podcasts. It might be possible to finance a duplex through private lending or a hard money loan. Although the terms would be harsh, it would allow you to rent out one side, while you live in the other, having your tenant pay the mortgage while you work to earn cash for the next property and repair your credit. It is a stretch, but a creative financing solution could get you on the right track.
I've been reading and listening to podcasts as well. And all this advice her will lead you in the right direction. Welcome to BP! Everyone is eager to help you succeed, so be a sponge.
I'm in a similar situation as you Cheri. All the infor and resources on BP is helping me lay my REI foundation. Good luck and best wishes
All the folks above have given you great advice!
I completely agree with Keith John about getting a duplex or small house with separate floors, renting out 1 level that does pay the mortgage so you can live free and put your money where needed in your investing.
I am a proponent for "creative financing" because if you don't use your own credit/cash which is a crutch then you have no limitations..OPM comes into play here (Other Peoples Money).
You need to search for financing ie someone carrying a mortgage, look to friends, family who have what you needed and offer an interest rate to them as an investor/partner in a joint venture.
I also urge you to not tie yourself down to a job and instead "drive for dollars", attend a Real Estate Investment group (usually free). There you can pass out your business cards and network. Who knows you might find your first deal there!
If you get a property under contract using an Earnest Money amount of only $10 to lock it up and have/find a wholesaler or end buyer and earn a quick $1000 - $5000 and you walk away...
I hope this has been helpful
Wow, thanks for all the replies! I didn't get a notification of any of them. I was starting to think my little post might have been overlooked. lol
Anyways, to answer your question, @Cory Calvin , the main reason I have bad credit is because of my medical bills, which I know doesn't make or break a deal. The other reason is because of credit cards, currently. My husband lost his job, so we had to use them until one of us found another one. Luckily enough he did find one and we should be able to pay them off fairly quickly. My credit should go back to about a 620 after, and I'll be trying to get it over that as well.
This is all really great advice!! I'll be taking some notes!
Welcome to BiggerPockets! Secondly, it's all about what exactly you'd like to do in real estate. There's many avenues to get into. Do you want to buy and hold? Flip houses? Wholesale? Get some rentals and be a landlord?
What I plan to do is save a little money and invest in stock options to grow that money a bit (just started and doing pretty good). This time next year, I plan to get a duplex to fix up, and start with the rental unit first, then do my area. I'll rent out the bigger space for higher rent since I'll move out in a year or two, and do the same thing again, but have a rental property with two units already under my belt. I also plan on getting an FHA loan since I can put down a low of 3.5%, and maybe see if they or another lender will also cover rehab costs.
I'm also interested in fixing and flipping, and hoping to start that within about 2 months. Just trying to decide on what I want to look for and how to build a team to help me (general contractor, an agent, some private money lenders, maybe some friends to help rehabbing, etc.)
About your finances, that's going to take some time, but don't let that hold you back from learning what you need to know to get started on your path. Boosting your credit score can take months or years, depending on its current state. I always suggest strategizing a course of action to take care of debts and stay on time with payments, keep any credit cards below 30%, and possibly get some secure loans or credit cards to help boost your credit as well. Outside of banks & credit unions, you still have hard money lenders who are willing to throw some money at a good investment opportunity.
I also suggest getting an Evernote or Trello account to start organizing your ideas about what you want to do with your potential real estate ventures.
Wish you the best of luck!
Hey @Dell Epps ,
Seems like you have yourself a good plan going! I would really like to build up a few properties to rent. I might explore other venues later on, but would really like to make a good amount of passive income for myself first before I explore any others. There are plenty of multi-family properties around here, so I'm hopeful I'll find something when the time comes.
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Thanks Raymond, but I don't have a shift key on my mobile device...it works just fine on my pc. :)