I have always been interested in real estate, read many books, but lately am thinking about doing something with it. At first, I was thinking I was going to just buy an investment property at the end of the year, but as I like to dream big, I was then thinking of trying to obtain funding to get my feet off the ground and buy a few places.
I am a 24 yr old with 2 degrees, but unfortunately, they are in engineering. I have a decent paying job but don’t like it. I am considering writing a business plan to try to get investing, but I have some big problems. One, I am an engineer, not a real estate person and two, i dont have any property or assets to put up for collateral.
Is it possible to obtain financing ~$500K to begin this venture?
As of now, my credit is good and I could qualify for up to a $300,000 mortgage. However, I obviously do not want to buy just one nice house, I want many properties.
I was considering a few options. One, international real estate. Dubai is growing rapidly, but with prices already pretty high, I was looking at perhaps Ajman which is close enough and also seeing good increases. I would look to keep this, while the prices go up and in the meantime, rent! Similarly, Costa Rica seems to becoming a good vacation spot and I would be interested to buy in Guanacaste which is still a little unknown but has good potential as well. Both countries are growing and stable (maybe costa rica not as much). I would also look to maintain and rent out the Costa Rica property. Costa rica would be more long term and used as vacation rental.
I have 20K saved and am continuing to save 3/4 of my paycheck each week.
By my initial calculations:
<$150,000 2BR place in Ajman to resell in 2-3 years
$150,000 place in Costa Rica
$150K to buy and flip properties in Florida with my uncle, via tax deed sales or foreclosures
Potential tax deed lien sales in Texas with up to 50% return during 2nd year.
$50K operating costs
Potential for land buy in Panama at very cheap prices as it is also growing and has stable economy.
I am hoping to have a mixed bag of Int’l and states. Int’l I can collect rent and realize no capital gains or income tax. This would serve beneficial for obvious reasons and after research, I really don’t beleive any property value in Ajman or Dubai will be decreasing in the near future as the demand still far outweights the supply and they are evolving with new architecture, golf courses, lakes, shopping, businesses, and of course dubailand. it estimates double tourism at 15million but 2015.
How the economy is now, i imagine i could find some properties in florida under 80K and be able to sell them quick for small gain. multiplied a few times and you see my vision!
ok, now stop laughing as i am serious and while i know it seems really ambitious, i don’t know why it would be out of the realm of possibility. I just would need a way to get funding. Even worse case, I figure i could resell the properties and work to pay off any debts if i fail miserably. being 24, i have time to recover! I know i need help of lawyers, real estate agents, and some more specific knowledge…but,
Am I crazy or do i have a chance? How can I get financing? Insight??