New member from Jersey City

3 Replies

Hello BiggerPockets

I am a new member hoping to learn how to invest in the real estate market with little capital.  I am excited to learn all I can from BP.

I also have a question.  I have a home that is currently underwater that I do not live in.  The Mortgage is up to date however I have request for a shortsale.  As someone who wants  to get into investing in the real  estate market,  is it a wise idea from me to apply for the shortsale

@Kukuwa Dawson It's a highly personal decision and you have to weigh all pros and cons. If you do a short sale, it would impact your credit report and subsequently your ability to borrow for your next investment. You should discuss this with a mortgage professional- to see what loans you could possibly qualify for after short sale. FHA guidelines are different than other loans.

I assume the property is cash-flowing negative. If you are able to sustain the expenses, it might make sense to keep the property till it is no longer under-water. Have you considered raising rents and decreasing expenses associated with it? 

Real estate investing could itself involve different activities and you do not need stellar credit for these - Wholesaling is excellent, low cost but highly competitive in this market. 

Rehab & flipping is excellent. You can find deals, pool money with other investors and get hard money loans that are without strict credit requirements, but based on the deal. The numbers on the property must make sense - comparable sales, rehab needed etc. 

All the best!

Thank you for taking the time to advice me  

@Kukuwa Dawson

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