Newbies: Take Action!

Hey BPers,

I wanted to try my hand at blogging while also trying to share some of my experiences with the community.

Not long ago, I too started on this journey to building wealth through Real Estate. Now my story is not a success story by any means; more so, documentation of the journey.

In 2003, armed with a steady job, and no credit, I knew Real Estate is where I wanted to be and took action.

First was to bolster my credit score, second was to save some money.

We will first tackle saving money. I put away about $200/month on average (just $100/paycheck). After a few months of this, I realized this was not enough, but I had no way to improve my income situation. So my next goal was to evaluate my budget and trim wherever possible. I started with taking lunch to work and making coffee at home (saving of about $130 and $30 respectively per month). I was able to save most of that ($150/month).

Next, was my credit score. I opened my first credit card in 2004 (Secured with a $300 limit). I would make small purchases on it, and pay the balance every month. Then a friend of mine explained there was a faster, better way to bolster my credit. The plan was to take out a personal loan using my saving as collateral. I took out a loan and paid it in full within 6months. Then repeated the process with another bank (Both loans combined, I probably paid about $150-200 in interest (Essentially buying better credit!). 

I still adhere to these same principles today (Managing my credit and committing to the savings plan). I will admit, I fell off the horse a time or two (Life happens), but the saving plan is still a part of my personal strategy some 12-13 years later.

My point of this blog is to let the newbies of the real estate world know what is possible with proper planning. I don't buy into the no-money down strategy of buying property (some may find great success there, but it is not my speed).

I have fixed and flipped (Before I knew it was called that), and I have house hacked (Again before I knew it was called that) and each of these ventures, I had money in the deal.

The takeaway from this should be to know that your dream is possible. I am still on the path I chose in 2003, but truthfully, not as far along as I would have liked. But the point is, I am pushing forward every day, taking hold of my future a little at a time. As I write this, I realize that though I am not as far along as I thought I would be 13 years ago, I am light years ahead of where I would be if I never decided to take action!

Please share in the comments below some of your own personal finance strategies. Also, any feedback would be greatly appreciated. Thanks BP!