Im 24 years old, my girlfriend is 22 years old, we live in the bronx, ny and live in our own apartment, rent is 900 per month for 1 bedroom, our lease is up in November 2012. We make around 2600 a month after taxes. My dad has good credit, good at fixing things as he is a superintendent. Bird Dogging/wholesaling seems a bit slow to get into real estate but worth the time, just hard in the bronx, and i really dont understand it. I know about arv, noi, and can pretty much tell calculate repair expenses from working with my dad when i was younger. I use to sell used cars from the auction before me and my girlfriend moved, but im looking to invest in something more BENEFICIAL. So here is my dilemma, Should i start birdogging in the bronx ny where houses start at $156,000 fmv for multifamily rehab homes(i also have a cousin in richmond va, but he doesnt have a car right now, i cant put him to work), should me and my girlfriend pack up and move to arizona with her mom, then get a house out there?, Should we continue renting where we are at now(i hate paying rent!) and find something(what i’ve been trying to do for past few months), should i get my dad to co-sign for a mulifamily? With the deposit me and my girlfriend will have $2000 in november if we move out. If not i still have a 1000 to invest. It feels like i may have to go back to selling cars. i have no kids, my girl friend has 10,000 credit card untouched. my credit is s***. Can anyone help me please?
You need to begin with the end in mind. That being said, When you get to be 40 years old what do you want to be doing?
Seling cars and homes when im 50 years old
Is there anybody you know that is doing what you want to do? If there is do what they did. It sounds like you want to get a real estate license.
First of all, let me commend you for your idealism
and your approach to things with your girlfriend
and your dad. I am familiar with the Bronx and
can do business there.
My name is Sid; I’m doing quite a bit in the business
and although still struggling, I have good mentors
preparing me for the next couple of months very
well. I have a lot to share with you and even
maybe you could work with me.
I sense you lack direction and you are working at cross purposes.
Your credit and the lack of a deposit is going to hold you back from getting a loan. Just because someone else can borrow does not mean you should be doing a joint venture with them.
We all have to pay to live somewhere. You either rent a place or you rent the money to buy. There is a cost in either case. Some savvy RE investors say you should stay a renter for your personal residence as that provides flexibility and you can rent a better place than you are likely to be able to buy. Be less sure that buying your place is the way to go.
Buying or helping with a multi-family refurbishment can be a winner.
Each market has both positives and negatives. Bronx NY vs. AZ? Hard to say. I would not compare the two markets that much. I would look at what you bring to the game and then figure out which location gives you the best chance of using your skills, knowledge, connections. Based on the very little you have shared above, I would say your father’s skills are a bigger asset than what you will have in AZ. In any event, you can create what you need in either location with time.
You need to fix the credit and you need to deal with the income. The sales job is not a winner for being a RE investor as banks do not like lending to sales people. Their income is not stable. They will want to know your salary and they will likely look back 2 or more years on your tax return to determine your income.
Investing with your girlfriend is not as solid as it sounds. If she was a keeper, then she would not be a girlfriend. Even when people are married they get divorced. While you might have the best relationship, do understand that any joint venture (that is what it is) will also have the risk that it will fail no matter how good the real estate is. The same for your father, her mother, your brother and any number of other people. Keep the deals professional, well documented and easy to understand. If you get hit by a bus and the judge is reading the paperwork will the judge know what you intended?
As much I get your problem, I think, your primary concern must be ‘What to do’?
First of all, you have to decide what you want to do, as your age is not too much you can go through a training period and then start working/business. Cash and place of living are secondary matters at this age. I hope this will help you to move further.
All the best for life.