Pay off debts before investing?

5 Replies

Should I pay off my student loans  (around 6k) and build my credit up (currently around 530) before trying to invest in real estate?

I'm not sure how to get started without credit or cash.

Btw,I have a steady job and pay my bills on time. My credit dropped because my student loans were bought and I didn't find out until 4 months afterwards. 

"My credit dropped because my student loans were bought and I didn't find out until 4 months afterwards."

How did this affect your credit? Did you send your payments to the wrong address or something?

There's all kinds of ways to "get started" in real estate and some of them don't even require you to be the buyer. You could wholesale by building a list of cash buyers then bringing deals you've got under contract to them. You could bird dog deals for other buyers. Just a couple of ideas! Tell you what: you take down two contracts on a wholesale deal and you'll have that 6k paid off. Take down 4 and I'll bet you could have 20k in your bank account.

Those are actionable steps, but maybe you'll use the time to brush up on real estate, becoming an expert in one aspect or another, totally up to you!

Point is: you HAVE started just by being here, now find some way to get the ball rolling. Good luck!

Logan Allec,all of my bills are automated. I was on a payment plan and a different company bought my loan but didn't contact me until 4 months later. It's taught me to pay closer attention to my finances. I think I should be fine after a few payments.

Sean,I've been doing a lot of reading ,watching videos and going to real estate investor meetings. What i keep telling myself is that I should be in a slightly better position financially (more money saved,better credit). The thought is l should be able to close a deal if need be. That's what I'm grappling with -my own thoughts and fear. 

It will be hard to complete any deals with most banks and HML. Bump up your credit score then you’ll be in better shape.

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