My wife and I are college students and I am web developer/marketer working from home. We want to pick up real estate investing since we plan to work for ourself during and after college. However, I can’t seem to find where to start. I’ve read countless books on investment strategies and setting goals. I have my goals, but I don’t know where to start.
I also don’t know if our poor credit would stop us from being able to get into real estate investing. We both have poor credit in part due to financial hardships and a family member of mine stole my identity and racked up more than $3,000 in debts under my SSN. As a result, our credit card debt is with collections agencies.
Any advice on where we should start and what we can do to break into real estate investing would be appreciated. Our goal is to acquire 4 single family rentals by next spring. Thank you in advance.
Based on your goal and your credit situation I’d suggest learning how to buy houses “subject-to” which doesn’t require your credit and doesn’t necessarily even have to require your own money.
Personally I’m a fan of Ron Legrand’s systems, but there are plenty of free or very cheap courses on how to structure a sub-to deal. Check the subject-to forum for more info on that.
I agree with NSU but will also offer wholesaling as a way to start. I dont know your financial situation but if you go sub-to you must have the ability to pay the mortgage on time until it is occupied and even then you never know what that new tenant is going to do so you have to have reserves.
Wholesaling and lease options are probably the easiest and quickest way to get started investing in real estate. I believe lease options are better because wholesaling will require you to find properties at substantial discounts to value. Not an easy task to tough out negotiations with a homeowner for most new investors.
Cleaning up your credit will require money even if the companies will settle for a lesser amount, you still will need some cash. As I said, I dont know your financial situation I was just offering you my advice on how you could get money in a little amount of time that you can put towards clearing your debt.
the more you get into RE investing the more good credit will help you so that should definitely be a goal for you and your wife.
Stop being a victim and clean up your credit. It is not difficult to do. Also, I would go after your relative to give him an opportunity (using legal remedies) to cure the problem by paying you. This can be done outside of court and effective through administrative remedies. Also, you can borrow unlimited amounts of money with no credit by doing lease purchases and ‘subject to’ deals. Don’t use excuses to delay. Take action and you will make money investing in R.E. If you need help, send a number and I will call to discuss. Hope this helps.
Welcome to the forum. I would agree with cleaning up your credit. A good lender should be able to tell you the necessary steps to take to get your credit to where it needs to be.
You have goals, that’s a great start. If you haven’t written them down do so immediately. Now…you say you don’t know where to start. I’ll tell you exactly where to start…JUST START! Take action. Look at your goals, determine a plan of action to accomplish your most immediate & attainable goal and just go out and do it. Every single successful investor started the exact same way. Here’s a great quote, worth writing down and posting on your wall: “When you take action the next step will quickly reveal itself.”
Good credit is overrated! I wouldn’t worry too much about your credit right now. You can do all the deals you want with 300 credit fresh off a felony prison bid. Do some wholesale deals, take some of that money and pay off the debts, and keep paying your other bills. Eventually your credit will take care of itself. It’ll take time (perhaps years), and you’re not gonna find a magic pill for that (although I hear some credit repair shops are highly effective). But in the meantime don’t let your credit stop you from doing deals. There are only so many houses you can buy using your own credit anyway before the banks cut you off.
If only $3,000 of debt threw you into a tailspin the LAST thing you need is a tenant. Build up your cashflow first. Get checks. May I suggest wholesaling, cooperative assignments, and options. None of these 3 strategies requires money or credit.