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Creative Real Estate Financing

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Zane Bradshaw
  • Cape Town, Western Cape
2
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Trying to get started..

Zane Bradshaw
  • Cape Town, Western Cape
Posted Sep 22 2016, 03:51

I am so desperate to just get my first property.. The thing stopping me is the fact that I'm 18 years old, and I have no current income.. What can I do to get an income? How much would I need to make per month to be funded by say now a HML? Also, how many months do I need to have proof of income?

Another challenge I face is because of my age, I have no collateral.what can I do to get myself collateral against something like a $100K loan? 

Thanks

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Jay Barndt
  • Investor
  • Julian, PA
24
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92
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Jay Barndt
  • Investor
  • Julian, PA
Replied Sep 24 2016, 18:31

Hi @Zane Bradshaw While i wish i started at your age, do not get beat down by your position. you have limitless possibilities. you could -get a job to get money coming in and saving. -look into partnering with someone to help you get into the game. assuming you have not debt at the moment could be a great benefit or also hinder your starting. but as far as getting your first property have you though about doing creative financing? maybe call or stop by FSBO properties or call "for rent" signs and just ask if they would consider selling? my favorite type of deal is one that does not involve a bank.. just food for thought. without any REI ground to stand on you could/may have to get creative to get your feet wet. just don't be afraid to hear "NO" from people or make mistakes because everyone does. keep at it and don't give up. best of luck in your REI adventures.

jay,

User Stats

53
Posts
2
Votes
Zane Bradshaw
  • Cape Town, Western Cape
2
Votes |
53
Posts
Zane Bradshaw
  • Cape Town, Western Cape
Replied Sep 25 2016, 10:04

@Jay Barndt Thanks for that. I have big plans for the coming future.. 

You say 'be creative', do you have any examples of being creative? I am in desperate need of ideas because I'm struggling to think that creative on my own at the moment. Thanks

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User Stats

92
Posts
24
Votes
Jay Barndt
  • Investor
  • Julian, PA
24
Votes |
92
Posts
Jay Barndt
  • Investor
  • Julian, PA
Replied Sep 25 2016, 19:21

@Zane Bradshaw, i used creative finance to get my newest property by talking with the owner and through a long conversation and 2 trips to the property he agreed to sell it to me with owner financing. 0 down. 0 interest for 10yrs. non recourse no early penalty,  purchase price 80,000.  triplex fully rented with long term tenants  1800/mo total rent.   but to help you with understanding creative real estate i would watch these 2 videos from Phil Pustejovsky. from Searching through BP forums and blogs and podcasts i also scoured YouTube and discovered Phil and his videos have really got my mind rolling in the right direction and gave me some clarity on creative real estate which is amazing when you do not have alot of money / capital to start out.

https://youtu.be/vjjrp6pL7yI

Good in depth educational vid below.

https://youtu.be/lSXGxOiRp7A

i hope these and more of his videos along with BP forums help you gain understanding that you do not need a bank to always invest and as your portfolio grows you will learn that most cases banks are the enemy of investors. and i apologize if this links more videos than the 2 above sometimes its goofy.  best of luck and i look forward to any questions you may have and your future success.

jay.