All Forum Posts by: Bob McIntosh

I have spoken to about 6 mortgage brokers, and not one of them would accept less than a 20% (most wanted 25% - 30%) down payment for an investment only property. If I were owner occupied as my first property I could get away with something lower, but I am not looking to do that right now.

For me its finding enough money to start. In my area any decent investment property is selling for $500K or more (many of the good ones are closer to a mil) so its been difficult to find $150K - $200k for a down payment...

I live in the NYC metro area, and I have the same issue, though i do like PNW's idea. It would take quite a bit of work in these expensive places to keep that going but it would be a great way to break into it. That is of course if you can find a property that has a cash flow situation that you can handle.

The only other thing that I can suggest is to be vigilant. Get a Realtor who will really "pound the pavement" if you will. There are deals out there, you just have to look for them. I would recommend you look for the places that need to be rehabbed, they offer you the best dollar per square foot, and you can generally have the work done and profit from the markup you can make once the place has been rehabbed. If you get into some creative financing, like using a combo of seller financing and a hard money loan while you are rehabbing you can refinance once its done with some decent equity which may help your cash flow situation.

What Wheatie states is very true. Paying down debt is certainly a good thing (especially if its high interest credit card debt), but what the banks now a days seem to be looking for is a good credit rating combined with a good debt to income ratio and a down payment. The first part is easy, pay your monthly minimums, don't close to many accounts at one, and don't open to many at once. In general and over time this will increase your credit score (please note that there are many factors involved with your credit score, these are some very general tips). The second part is a bit more tricky. Having debt will not prevent you from getting a loan, nor will it lower your credit score (unless you don't pay at least the minimums due each month). Take a look at your debt/income ratio and if it is decent then I would set aside some of the cash to help with the purchase of the investment, and use the rest to make regular payments on the debt. Once you have enough cash stored away you will have the down payment.

Hope that helps!

Hey AlexD, I know this post is a bit old, but I moved to Jersey City about a year ago, and will be moving to Hoboken in May of 08. I have spent this time learning about REI and the local areas around JC/Hoboken.

I have recently been looking for a piece of property to hold and rent, but have not had very much success. I would be curious to know how your REI career is going, and if you have had any success?

Thanks everyone :D

and to msedwick:
I am most interested in development, but before I just jumped into that I wanted to build up a little portfolio, make some contacts in the industry (other investors, banks, construction, etc..), and move upwards from there.

Again Thanks Everyone!!

I have purchased a few of his books, while they are generally "ok" they do advocate the "get rick quick" idea. There seems to be little knowledge in them that is truly useful, however if you are looking for motivation to get into real estate then I suggest you read any of his books.

As for his class, I can't say exactly. He wanted $9000 for the enlightened wealth institute membership, whose goal was to have you living off the money from your real estate investments within 1 year. While this is a lofty goal, it could be achieved, and maybe the $9000 is worth it. I didn't pay for it, and based on a lot of what I have read, my $9000 would be the first piece, which can only truly be completed by purchasing the second piece for another $5000, which can only be completed by the third piece, ect..

In fact he even advocates that practice in at least one of his books.

Overall I would have to say:

:protest:

Hello everyone. I just recently moved to Jersey City, NJ and have begun to look for my first investment property in this area. I am a young professional with a lot of enthusiasm, and tons of energy! I graduated from college about a year and a half ago, and have a job with a great company however I realized that while I do enjoy what I am doing, I need more financially. I am actively seeking out partners to help me begin what I already know will be an amazing ride in the real estate investment world.