Seeking for a good advise for my path to financial freedom!

5 Replies

Hello Everyone,

I am a listener of BiggerPockets podcast for a while and I am still new at real estate. I wanted to get some advice. I was not sure if this is the place to post but here it is. I have a primary residence in Lowell, MA. I have a mortgage 30 fixed since 2007 I have never tap into my equity. I had some ups and downs were I had to do loan modifications, the worst of all I had to file for Chapter 13 to keep my Home from previous Ch 7 filed. I am still on my 2yr of my 60month of my ch 13. I went with the first advice with a bankruptcy attorney without learning much. I did not want to lose my home at the time. Now after being in this mess of 2yr paying the court+ my mortgage, what are my options to become an investor? I think I have some kind of equity in my home but I never wanted to use it for anything. After listening to this episode turning your primary residence into a financial freedom.  like more others but I am scared of asking this question and were to start since this is a mess I got myself into for the lack of knowledge. I hear everybody financial freedom and I want to become part of it since I have my home. Help! What advise is for me out there... and if there is hope for me...

Thank you

Shirley

Lowell, MA

The good news is that you can buy houses with no money.  You might want to study up on lease options and subject too purchases.  BP is a good place to learn about this.

What you need to do is to market for sellers who have a problem   What you really want is people who are drowning in debt, so that you can take over their debt, along with their house.

Hi Shirley, welcome to BP! Question, how much equity do you think you have? Is your loan modification done through your mortgage servicing company or handled by the BK attorney? Pulling out a HELOC to do some investing would be a great option for you but I'm not sure you can and would need to know more about how things are structured.

You likely can't tap into your equity without selling your property currently due to your credit and being in an active bankruptcy. Seems scary to take on any additional debt unless unless if you have quite an increase in cash flow or an amazing opportunity due to currently being in a debt repayment plan.

Thank you for taking time to reply.

I really don't know how much equity I have. My loan modification is set for the life of the loan at 2.12%. I wanted to know if I could pull a HELOC to invest that money into purchasing another property where I could generate passive income. I am paying my BK payments and my mortgage every month.

Shirley

May I suggest checking out tax delinquent auctions. The investor with the most properties owned outright wins. Less stress.

You will need some cash to clean up and renovate. The upside is that you won’t have the stress of having a mortgage to eat revenues and stress to ensure that the rent clears before the loan payment does.

The key lies in selecting decent properties to bid on. Your list will have competition, but for good reason.

Best wishes ahead!

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