Brentwood, CA · Member since 2018 · 6 posts · 1 vote
Hello,
I just learned about RE investing at the beginning of the month, attending a free RE seminar. I found biggerpockets.com about a week or 2 ago and have been learning a ton from webinars, podcasts, blogs etc. From what we've learned so far, my husband and I really want to purchase our first property (house hacking or rental).
Here's our situation. We are 18k in CC debt (all 0% atm w/ bal transfer offers available) Our credit score ranges from 680-720. We make just under 100k yearly. We have over 2k in savings. How do we go about looking? We have not applied for any loan (preapproval or otherwise). I'm not sure whether we should save up some more, up our credit score, or just dive in with passion and calculated risks with where we are now.
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
8y
1) credit score ….if you can get your rev debt spread out so that all card balances are under 30% of the cards max limit - this should help your score improve
2) contact a lender/ loan officer to begin the pre approval process ...you can use whatever hypothetical you want to and then adjust the parameters as the file begins taking shape ...this process should be easy and free ...definitely get this completed and in place before y you begin property looking
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
8y
1) credit score ….if you can get your rev debt spread out so that all card balances are under 30% of the cards max limit - this should help your score improve
2) contact a lender/ loan officer to begin the pre approval process ...you can use whatever hypothetical you want to and then adjust the parameters as the file begins taking shape ...this process should be easy and free ...definitely get this completed and in place before y you begin property looking
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
8y
I would make a point to save back more cash in your savings in the meantime . It may mean not eating out avoiding alcohol Netflix or shopping etc . Because Even with leverage you will need money for expenses reserves and closing regardless . Call a local bank , schedule a time and sit down with a loan officer discuss your options . Every bank seems to have different parameters and They will go over everything and help you along your journey to investing
Rental Property Investor · Philadelphia, PA · Member since 2016 · 191 posts · 165 votes
8y
Amelia Bloomfield 2k in savings is not going to get you very far in REI. Real estate investing is a very capital intensive activity one way or another. Consider that you will need to have cash reserves once you have a property. Getting the credit score up and saving more will also make it easier for you to win better deals as it gives you more options.
Brentwood, CA · Member since 2018 · 6 posts · 1 vote
8y
@sung Park yes, that's my understanding. However, I've been listening and reading a good amount of stuff saying that you CAN start with very little to no money, hence my post up here. I do believe we need to save up more. Thanks!