My wife and I went to “Learn to be Rich” seminar back in May. We learned all of the different routes that one can take in real estate, as well as, information on each route to get you started. We decided that we would start with wholesaling to raise some capital. Following the seminar, we put 1 property under contract and cancelled it and almost put three others under contract. However, after talking with some seasoned investors, we decided not to go forward with the deal. Since then nothing has really happened except for reading and studying real estate articles and thinking about what we need to do.
After much contemplation, we decided that because our credit score is extremely low (530’s), we need to work on getting our credit score up before we move further. Also, we are moving in three weeks to different state, as I am a teacher be trade. I haven’t had full time work for two years. Now that I have a full time position starting in the fall, we will have a steady income coming in to work on getting those debts paid off and our credit score up. We will still look for deals along the way, but know that the better we make a financial situation, the better we can land a deal with some liquid cash. We are moving into a market that has TONS of foreclosures and REO’s. I feel that after we get our credit situation straigthened out, we can focus on our ability to find private money lenders or HML. I read an article on this site from a HML stating that because of the position of the economy, HML are looking at the borrower as well as the deal.
So…sound like a plan??? :biggrin
Sounds like a VERY GOOD PLAN to me. Get your credit straightened out first and then start on REI!
Good Luck,
Mike
It’s a beginning. Search through these posts for “Advice to Newbies” thread by fdjake. Then you need to get your plan ON PAPER with a time line.
Be very specific. Tackle your smallest amount owed first. Get a part-time job. Cut spending way back. Set up an emergency cash account.
Good luck and let us know how you are doing.
Furnishedowner
Thanks for the advice! We just don’t have the capital at this time; however, we will when debts are paid off. I know that you can use OPM for leverage, but in order to leverage yourself int his business, you have to have access to cash. With our credit score right now, Its not going to be easy. We thought that if we found a great deal, a HML would help us out, but as I said, with the economy, that is becoming tougher too. I will keep you posted :smile
amesda - have you looked into bird dogging and wholesaling? There is a forum here dedicated to those topics… you can learn a lot… You can get started with very low money and learn about real estate while finding deals for others… I understand that you can also control your risk…
Having said that I believe you are in the right path reducing your debt and fixing your credit…
Have a great weekend. Good luck! Keep us posted!
Not to be the elephant in the room but fixing your credit doesn’t require alot of time or energy, it typically involves money (paying off old debts and getting rid of judgements), one of the best ways to make money investing does not require credit or cash, try wholesaling and bird dogging some homes to make some cash to fix your credit, plus you will gain alot of experience so that when your credit is fixed you wont need to learn mistakes the hard way.
Good luck