REI wife and mom from NY

6 Replies

Hey all...so just a little background on my family and I. I currently work for an insurance company as an underwriter. My husband is a private music teacher. We are living in my grandmothers house while she is at a nursing home. We are trying to save the house and keep it in the family. The house that we were previously living, we are renting out. That house is still underwater or possibly a little above. We do not like renting, it's a really big headache for us. The people living there didn't turn out to be as good as we hoped. The rent is pretty Michu paying the mortgage. Nothing over.

What we would ultimately like to do is fix it up try selling it, maybe make a little profit and start flipping houses. I've been listening to a bunch of podcasts, reading and trying to get really educated. I'm wanting to go to seminars and also go to meetups to try and network a bit. My concern right now is where that money will come from to purchase. Not sure if a financial institution will lend us money...we'll see.

We've been trying for years to find something to get us financially free and I think this has clicked in both of our heads. We are very dedicated to this new venture and I have a lot of confidence in us.

Thanks for listening!

-Teri

Hi Theresa

I'm pretty new in my investing career too but I've made enough mistakes to be able to give a little advice.

From your post, it was a little unclear but it sounds like you're renting out the home you own for just enough to pay the mortgage and you're not crazy about being a landlord. It didn't seem to mention whether you pay rent at your grandmother's or not, but if you don't, it seems like you're in a good position. Although I know what you mean about being a landlord - every month I wonder if I'm going to have to evict someone. All said and done though, we all want to be or become landlords (ideally with a property management company doing the hands-on work) because that's how you make passive income. What you need to do is clarify how much sense it makes to be a landlord of the particular house you have right now. And make no mistake, sometimes the only thing more valuable than cash, is owning property, so you don't want to do anything without having a long term plan. As well as the fact that you may end up in probate court at any time.

I'd therefore recommend you take the next couple of steps ASAP. 1) Find a lender who specializes in dealing with investors in your area (probably by asking on these forums because they're unlikely to be found at your local bank), 2) Order 'The book on flipping houses' from the menu above, and 3) If you haven't done so already, work through 'The beginner's guide to real estate...'. And the www.biggerpockets.com/starthere

And maybe just one more, OK,  two more things: Learn enough so you never have to blindly trust. You'll be taken advantage of. Period. You have the resources from this site to get there. And two, avoid doing stuff from a distance that you can't get to regularly, unless you trust someone who has as much or more to lose than you do.

As I said earlier, it sounds like you're in a very good place to start making this happen for you. It can be demanding but if you have a plan and stick to it, even ploddingly, you'll change your future.

Hope to hear how it goes for you. Take care.

Hi Valerie,

Thanks for the reply. I just bought the bigger pockets house flipping books. The more info I can get the better. I think my next step is going to be networking and see about financing. I want to make sure I have the right team behind me and the funds. All in all thanks for the help. Much appreciated!

Teri

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