Hello, I am new to the forum, and am interested in starting a career in investing in real estate. I’m a little apprehensive, not sure why, but let me explain…
A few years ago, a friend handed me a binder with a bunch of DVDs and CDs in it, it was Carleton Sheets study course. He said he didn’t want it, thought I might want to learn something. I asked him why he didn’t want it, he said that he was talking with others who had convinced him that investing in real estate was too complicated, had too many pitfalls, yada yada. Said it wasn’t for him. (I guess he thought if he was going to fail at it, pass it on, so that he can watch others fail too??)
Anyways, a couple months back I lost my job of 5-1/2 years, downsized. In the meantime I was cleaning out the old shed and found the binder/DVDs/CDs. I read it all, watched and heard it all, several times. It makes a lot of sense to me now.
Here’s my dilemma:
The good: prices are going down in real estate in my target area. Great time to buy, for rehabs, for renting, for both, etc. I can get good marketable homes in my area for great prices, and priced insurance, taxes, management expenses, etc., and still have plenty of room for positive income while keeping the rentable price very affordable for the prospective renter. There are good rentable homes, and homes that would lend themselves well to buying cheap, rehabbing myself, and flipping them. Now that I am unemployed, I have the time that most working folks wished they had to do all the footwork and handiwork. All the numbers add up. And, I’m excited!
The bad: I have no job, therefore, no income (except for unemployment). Regardless of this unemployment amount, lending institutions want to see an employer on the application, NOT “state unemployment” as a source of income. I have no savings. I have good credit, but I don’t want to jeopardize that by getting in over my head. I have checked around with sellers and real estate brokers in my area, most want at least some cash down at closing, and even if that wasn’t the case, I haven’t found a broker yet that will take back their commission in the form of a note. There are almost no homes in my target area that are for sale by owner (without a broker involved), the few that are are way too expensive for my plan. Partners - all of the folks I know are living hand to mouth, paycheck to paycheck, and can barely afford to pay for their own living expenses, much less invest.
So, all that being said - how did you all get started, and how would you recommend I start? Which avenue should I take? Besides 3rd Avenue downtown to the unemployment office, thanks. :biggrin
Sorry for the long post, just excited - I know I can do this, just need some advice. Thanks!