I know everyone here must think I am crazy, but while I sell real estate, I am reluctant to get into investing. It seems that now would a great time to find deals, but I end up sending them to others instead of investing myself.
How do you get over that fear? I don’t have a lot of cash, but want to profit from the market.
If you can put together a decent deal, you’ll gain confidence. After the first couple deals and when you have your team in place, you’ll find it’s not that bad. Just don’t over-extend yourself. Heard a story just today about a Realtor that used to live across from my in-laws (in a very nice neighborhood). He decided to buy a house worth about twice as much as his old one and now it’s being foreclosed because he can’t make the payments.
I agree with Justin. Figure out a way to LIVE FREE or as close to it as you can get.
That means buying a duplex where one side pays the bills, you live in the other. Or a house with a free guest cottage attached.
Just don’t get sucked into that granite-jacuzzi-vaulted ceiling kind of BS that you probably preview every week.
Don’t become house poor. Let others brag about their mega-buck outdoor kitchens. You will just be able to smile and think about your minimal housing cost. Your tenant who is buying the house for you.
Come up with a plan and post it here. We will be happy to help you analyze it. You have been listening to your gut and that is why you haven’t invested in anything yet. Very wise.
Good luck and get back to us with your long-and short-term plan.
Furnishedowner
The deal I like the best for its potential would be to buy a 4 plex and live in one of the units, buy a 4 plex that needs repairs or updating to get a good discount, then use an FHA203K loan to buy it and remodel it, The other 3 units should easily cover your mortgage and maybe some cash in your pocket as well.
When you move on, at about 1 year, because you only have to be owner occupied for 1 year, then rent out the last unit, and get some real good cash flow.
Oh and go buy the next 4 plex and live in it as well, so basically stated, because your buying as an owner occupied, you can finance them with an FHA loan with 3.5% down and have the seller pay all your closing costs. It seems to me to be a great way to build your investment portfolio.
Happy hunting no matter which way you go!!!
stevenwright,
Rastusracing wrote you a great plan. You other newbies should read it too.
If a 4-unit is too much for a first bite, get a single family residence with a FREE UNIT. The free unit is a garage unit, an old shed with plumbing, the boarded-up guest house. Anything that you can convert to a studio unit for a single tenant. Check your zoning to make sure it is possible.
A single unit can pay a HUGE portion of your mortgage if you buy with that idea in mind. I don’t plan to have a single family residence ever again. Oh, well, yes, but it will have GUEST COTTAGES on the huge manicured acreage, overlooking the ocean. All right, I am dreaming, but you get the idea.
Furnishedowner
If you are already selling real estate, you must have the knowledge of what is profitable and what is not. I think you are just a little afraid because you are not risky (kind of like myself lol). I do believe that you will get over your fear if you make one good investment.
Make a small one, start from the bottom. That way you can start to gain some experience in investing for yourself and you will start to recognize when something is a real investment and when it might be a waste of your money.
You will do just fine. :cool