Real Estate

[STR8UP]

Originally posted by WORKEROUTER
So where should I start? My story is this: I'm 18, go to college, and work around 15 hours per week, only making around 7-8 bucks per hour.

Most of my income is eaten up by expenses, and I really have no credit yet.

What should I start by doing? Reading material?

It just seems hopeless to think of buying a place if I have really no net income I can put in the bank for investment!

You start by learning the game, even if you aren't ready to play it. Read up on creative financing, start building your credit, and keep yourself out of consumer debt.

I have had a ton of guys in your shoes ask me the same question just itching to come out swinging. You have to understand that this stuff won't happen overnight. You have to start somewhere. The very first step is changing your mindset. Once you start to see things the way the super wealthy see them you will be on the right path. Once you beginn to change your way of thinking, if you are able to build some credit and keep yourself out of bad debt you will be in the perfect position to go full steam ahead.

My girlfriend is in the same boat. She is only 23 and still in school. She watches me and has her eye on doing the same things I do but being in school and working full time makes it hard. Her hands are tied right now....hopefully in a couple of years she can get things rolling.

 

[diablo]

ST8UP has some good advice.

If you're 18 and only making ~$200 a paycheck, along with no credit history you might want to hold off for a few years. I'd recommend getting a credit card and lowering your limit right away... while they might give you $1000 in initial credit, call them up and say you want it dropped to just $200. That way you know that no matter how much you spend on it, you can always have it paid off in full by the time your next paycheck rolls around. Use it for gas and whatnot. Next, I'd recommend taking out a $1000 loan from the bank and putting it into a seperate checking account that you wouldn't have easy access to. Use that (plus the interest and origination fee) to pay it off each month. I'd think a year would be about right for that sort of unsecured loan.

When you have $5000 saved up and are able to use it for the down payment on a $100,000 home, go for it. Just remember that you're buying the home and the home alone. You'll still have to pay out money to furnish it... which will take at least several thousand more. You'll have to get a fridge, microwave, kitchen appliances and everything else you take for granted at your parents house... not to mention utilities, food, repairs, etc...

 

[unamean]

I AM ACTUALLY A MORTGAGE BROKER. I WORK WITH 60 BANKS. I HAVE BANKS THAT DO 115% FINANCING. THE MOST IMPORTANT THING IS YOUR CREDIT SCORE. IF YOU GUYS HAVE ANY QUESTIONS ABOUT ANYTHING FEEL FREE TO EMAIL ME MCRAUCIUC@TRIUMPHFUNDINGCORP.COM

 

[cave dweller]

study........

WORKEROUTER,

Here is one way to start:

Look at 50 'fixer-upper' houses. ie...'handy-man specials'

You will see a couple that are real deals.

The first house that I bought was a fixer-upper, on two lots.

My cash at closing?-------$84.00
Total price of house?-----$2,000
Mortgage payment?------$50.00 a month

So, now you know how I bought my first chunk of real estate.

I did it, so, you can too.

A question for you.----Why rent when you can buy?

my 2 cents

cave dweller

 

[cave dweller]

the keys........

Hey,

The 'key' to making money in real estate is:

Take your time---research and study the area where you live.

After you look at 50 or 100 houses you aquire the 'eye' to spot a real bargain.

cave dweller

 

[STR8UP]

Re: the keys........

Originally posted by cave dweller
Hey,

The 'key' to making money in real estate is:

Take your time---research and study the area where you live.

After you look at 50 or 100 houses you aquire the 'eye' to spot a real bargain.

cave dweller

Good advice. I can attribute a big part of my recent success to having simply watched the market in my area for the last year or two. As soon as I ran across these condo conversion projects I instantly knew that they were underpriced and bought as many as I could manage. Many of the other residents that lived in the complexes expressed to me that they felt the units were seriously overpriced. One was even quoted saying this on t.v.! Now 6 months later they could be turning around selling their unit for $50,000 more than what they paid. That's the price of not knowing the market.

 

[WORKEROUTER]

Originally posted by STR8UP
You start by learning the game, even if you aren't ready to play it. Read up on creative financing, start building your credit, and keep yourself out of consumer debt.

I have had a ton of guys in your shoes ask me the same question just itching to come out swinging. You have to understand that this stuff won't happen overnight. You have to start somewhere. The very first step is changing your mindset. Once you start to see things the way the super wealthy see them you will be on the right path. Once you beginn to change your way of thinking, if you are able to build some credit and keep yourself out of bad debt you will be in the perfect position to go full steam ahead.

My girlfriend is in the same boat. She is only 23 and still in school. She watches me and has her eye on doing the same things I do but being in school and working full time makes it hard. Her hands are tied right now....hopefully in a couple of years she can get things rolling.

Could you please recommend some very beginner books to read? Since I am totally ignorant about most of this stuff, I thought I should maybe start by reading a very basic book on economics. Also, I ordered the book "Rich Dad, Poor Dad."

 

[STR8UP]

Originally posted by WORKEROUTER
Could you please recommend some very beginner books to read? Since I am totally ignorant about most of this stuff, I thought I should maybe start by reading a very basic book on economics. Also, I ordered the book "Rich Dad, Poor Dad."

See my "beginners guide" for a few suggestions. Also, go to richdad.com forums and search the forums. Lots of good recommendations there.

If I get time I am definitely going to write an eBook for those of you just starting out. Hopefully it would help you to get moving in the right direction.