This is my first post and I plan to make many more posts as my real estate advances. I am a 2nd year student at the university of Connecticut and I am pursuing a degree in Real estate/urban economics. I am challenging myself to complete a goal of making any kind of profit in flipping a minimum of 3 single family homes this year. I am a full -time student, unemployed, about $5,000 in savings, good credit, no debt and very hard working. I would like my first couple deals to go smoothly so i can gain knowledge on how the process works. I would like to invest in foreclosed/REO’s and distressed properties, but i dont have many contacts or any idea on how to get listings. I would love help from anyone and maybe some sort of plan on how i should begin. Thank you very much in advance and hope to hear from everyone soon. Also beign a college student I am able to get student loans woudl it be smart for me to use the money from their into my first real estate deals?
Find and attend the local REI Club…network with other like-minded folks. You will need these folks to flip your properties to and for guidance as to what the local investors are looking for…
Use your student loans for college…! An investment in your education is top priority (and probably fraud if you do else…).
Hello, I agree with Keith on both points.
An education and networking with people from a local REI club is very important and the first step to success.
As for the student loan money for RE. I don’t suggest you do that. Fraud is a serious matter.
Thank you both for the tips, i agree taht i should’nt take out the student loan. any other tips you can give me besides joining an REI club will be greatly appreciated. I want to invest in REO properties first what steps should i take in order to do this successfully?
Hello, REO properties are not easy to obtain. You will need to do your due diligence and research the property.
Also, you will need to have funding available and in place for the purchase. Having a pre-approval letter would not hurt.
Then, your going to have to negotiate the deal. Banks are not motivated sellers unless they have had the property on their books for too long of a period of time.
Foreclosures and distressed properties will also need for you to be able to negotiate and know your market and have a source for financing.
Again, I suggest more education and possibly a mentor from your local REI club to help you with the deal process and learning your market. Also, having a steady income to prove that you can afford to own the home would help. I hope that this information helps you.
good find a good deal on a house to buy for your own use with a bunch of bedrooms and then rent them out. Its highly likely you can be livin’ rent free if not making money while other people are paying off your house. ;D Owner occupied loans are th easiest to get and you’ll get your feet wet in RE and see if you like it. In a couple of years you’ll have a nice chunk of equity in a house, probably cash in your pocket and worldly experience in RE deals.
Read everything on this site…really! It is a treasure trove of knowledge! Read published text on the area(s) of investing that interest you…read, read, read!
Yeah, I know …“as if I don’t have enough reading to do!”.
As we said in the Armyt about required reading: “It’s only a lot of reading if you do it”!
Ram
I’m new to this real estate investing but I’m a vested pro when it comes to student loans ie. mother of 3 college students, one in med school…that loan is exactly that a LOAN. It is not fraud to use the loan for things other than tuition, books or room and board. You have to pay it back it’s your money and investing it is an excellant idea. What a great source of funding…low interest, no payment for 6 mths after graduation and the only qualifying you have to do is be a full time student at an accredited school…go for it. I say this assuming your tuition, books, meals etc are already covered. If you don’t need the loan for school then definately get the loan, invest it and once you reach sophomore status your loan amount goes up as does the availability of a second loan. Good Luck