All Forum Posts by: Ricardo S.

I am also a big Dave Ramsey fam. I listen to his podcasts and hear about all these people in credit card debt, student loan debt, car loan debt and medical debt etc. Meanwhile they own 2-3 rental properties. Common sense will tell you that this will lead you to financial ruin. Debt that doesn't make you money is bad debt. Debt that do make you money is good debt aka have a property that cashflows after expenses are paid. Most of the people he talks to have bad debt. If you are going to be in real estate you should pay off bad debt first.

What town specifically do you invest in?

This is a good step in the right direction. Now hotels will have to give incentives for people to stay in a small 300sf room for $500 a night vs renting a house in the same area. The negative is that it will drive rental prices even higher for homes in prime vacation areas. Well, thats only a negative if your a renter an not a owner.

@Eric Tsang

If you dont mind me asking, Whats was the price of that 3 family house in Brooklyn? What neighborhood? 

I current live in the East Flatbush area by Brooklyn College.

Thank you everyone for the advice!

I've decided to pay off my debt. This should take me about 5 months (maybe less). I've chosen this option because I want to be debt free when purchasing my first investment property (house hacking). It would also mean less financial stress.

Thanks again!

@John D.

No. Just the areas in Newark NJ that I want to invest in. Thank you!

@Ben Leybovich

I'll at least pay the debt down to 30% utilization then speak to a lender to see if they prefer me to pay off the remaining balance. Thanks!

@Jon Klaus @David Dachtera @Douglas Snook @Wilson Churchill @Chris Seveney @Joe DiGirolamo @Tom T.

Thank you all for the valuable information and opinions. At the very least I will pay down my balance to about 30% utilization then speak to a lender to see if they recommend I pay off the balance since they will be the one giving me the loan.

Actually the only reason I am in this much debt was because I had to put my last two college semesters tuition and book rental payments on the credit cards. I had to do this to graduate on time. They threatened to drop my classes. SHAME ON YOU CUNY!

I wont ask my family for money. They already pretty much helped me up until the 3rd yr of school. I had a FT job while going to school FT.

I already know the neighborhoods I want to live/invest in. I know the vacancy rates. I also know the average income for the areas and eviction process. 

I have a few lenders that are in my area that I found through the HUD website that do 203k loans and I made sure that they had licenses to do business in the states I want to invest in after I have the first property under my belt.(GA,FL,NC,SC,VA)

So its very important that I have a good relationship with them from the get go. Thats why when I planned on talking to them I wanted to have all my ducks in a row. Being this young I've read on BP that some lenders don't take you seriously.

After I obtained a pre approval letter my next plan was to find an Real Estate Agent. The approval letter is to show them I am serious and not here to waste time.

@Gino Barbaro

I am very passionate about this. I already have my 50 units in 5 years plan. This initial investment deal is just to get my feet wet you know? I know I am a little nervous and want to minimize mistakes.

@David Dachtera

Each card has a total credit limit of 5K

I also have an American Express charge card (no balance)

The oldest account is my Citi card. Opened in 2012, Chase 2013 and Amex 2013.

I was a consumer but are now in transition to becoming an investor. The thing is though, from my understanding there is good debt and bad debt, correct? If the investment you have debt on is making you money that its good debt. Credit card debt doesn't generate income so thats bad debt. 

@Aaron Montague

Thank you! I really appreciate it.

That will be one of my goals for 2016