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Category: Need Advice Current Grade: A+ Total Views: 1263 Member Comments: 7 |
Posted on: 08/22/2007 Posted by: JohnBoy Blog Points: 1511 View all blogs >> |
I love being a Realtor and working with investors and anyone else who wants to buy a home. But I really want my own piece of the investing pie. Now comes the all important question of HOW. I do not have a great credit score or alot of extra money so I'll have to get creative with my financing. I would like to start out with a rental and let that help build up my credit. I am 30 yrs old and I was thinking that I would like to have about 25 rentals by the time I am 35 so that's 5 a year for the next 5 years. That sounds do-able right. I would like to do a flip ot two a year to make the quick cash too and pay for part of the rehab work with the money from the rentals and vice-versa. Any advice that you can give this newbie would be greatly appreciated. And if any of you investors out there would like to invest with me, or in me, I would do my best to make it worth it for you. I would be willing to refinance the rental in my name in a few years or so and pay back the investment plus some or sell the rental and split the profits with you. Whatever you want as long as we both profit, I am open to any suggestions.
Thanks for your time.
John
I writing a new Blog Help The Wholesale Investors it might be something that would interest you. Listen to Colin wholesale first get a piggy bank then start rentals. I did rentals for 6 years and what a headache with no money. There are a few loop holes that run in your way in rentals. Not paying rent on time so you would have to pay the mortgage out of pocket, Get the tenents evicted with kids good luck, Something breaks down hotwater heater, furnace exc. Backed up sewer because a tenents kid decided to flush her doll down the toilet or a lot of popcicle sticks, The tenents haven't cut the lawn you get a fine from the town. The tenents decide to do some rehab work like rip out a wall to make a room bigger or what ever, Somebody breaks a window, The list can go on and on
So before you think about renting get into wholesaling and get a big piggy bank like Colin says and get PRESTON ELYS BOOK its under 100.00 dollars and its great he is great to deal with have fun get a lot of money and be free and open minded and have fun with your money when you get it how ever you get it GOOD LUCK AND BE SAFE
Ed Creative Guy
Definitely save up some reserves for your rental properties. If possible, put 10-20% down. It's good to have money for holding costs and unexpected expenses. Managing rental property, if done properly, is very grueling and when mistakes are made they cost money.
Good luck!
Since you are a Realtor, you are already licensed to manage rental properties. Running rental properties for others will create other opportunities, expose you to the realities of becoming a landlord, and give you an idea if you have the temperment for buy and hold.
Preston's webinar is a great start, I'd go there.
Colin
John,
I have found that working with a smaller local bank is easier, they are more apt to work with you and give you the loan. The big banks like BankOne, Chase, etc. it cost them too much money to do a small loan and they just dont seem interested with the way the market is right now. The little banks work better.
Shawn
Awesome Blog John A +
Your plan is definitely doable! If I were you I would work on the credit first! Cash is King - Credit is Queen. Lexington law is a great resource to repair you credit and its affordable.
If you want to get started immediately on rentals I would look at subject to or sandwich lease options. You should go and buy Wendy Patton's book on Lease options - its the best i have read on the subject. I have some great ideas to have sellers call you. And finding tenants is a breeze.
If you need more help feel free to PM me.
Sean