I have an agreement with this lady where as I get people to buy 12 of her pre-construction phase lots and she will give me 20,000 down payment on a lot. This still leaves me 16,000 short of the mortgage that I would have to pay to hold the lot for the 18 months. The lots are 100,000 and are expected to go up 250,000 within 18 months. What would be the best way for me to acquire this $16,000? Ask for financing or is there some other way? I really want to get one of these lots. I'm only 18 so i don't really have a credit history either.
Is this a house or just a lot? Lots are just pure speculation. They usually don’t generate income (unless it’s commercial lot and you can rent it out to a peddler or something). So this is going to be a drain on your finances. Do you have a real estate license to sell the lots for her? In most states that is required. In order to get a mortgage, you need a job, get a job first. Get experience, goto college part time, get a better job that makes good money. Save your money, than invest into Real Estate. That is how I got started. Most people get started doing it that way, sure some Gasbag on TV will tell you that you don’t need money, credit, or a brain to invest in Real Estate. But than again they want you to buy their special program.
It is a lot, and from the history of the lots that have gone up in other parts of this resort, the lot will get up to $250,000. Right now I am going to college full time, but i’m trying to do some wholesaling jobs. That is how I plan on acquiring some wealth to start getting into my real estate investing. I have been to a seminar lead by Glen Purdy, it taught me a lot. But i’m still learning. I have people who are helping me walk through it, so I think I can make it. I might drop out of school though, cause i’m not interested in it anymore.
Well you will soon learn the first rule of investing, previous gains will never guarantee future returns. If it is selling for 100K today, what is going to happen in your area that will make it worth 250K in just 18 months? If they are such good buys, and will be worth 250K in just 18 months, why does the lady need you to sell them? Why doesn’t she hold out for the big money?
Honestly, I would stay in school.
I would like to stay in school, but honestly i can’t get myself motivated anymore. The lots are going up so fast because it’s pre-construction phase. Actually, it’s like a stage 1 lot for a pre-construction price. This lady has a lot of these lots that she’s not selling, but for each one that she does sell she makes $10,000 on, and allows someone else to make money too. I think that she’s doing pretty well for yourself and likes to help people out too. Before i get out of school, i want to at least to a couple wholesale deals just to make sure that i can do it.
I agree with Dave. Why is she not selling them? I suggest you do some homework on the lots. Anyone that wants to wholesale me a property is going to take a good portion of the equity for themselves. That leaves me a much thinner margin. To convince me to buy it you had better have a lot of information that is very convincing.
As for school, I was VERY unmotivated my last year. I was on the 5 year program. However, I found that it was well worth it when I was done. Get the degree. Doesn’t matter what it is in. When you go to get a job, a degree on your resume will at least show that you can set out to do something and complete it. That is an important quality. Lots of people have jobs that they don’t like. (That includes college). However they stick with it because it pays the bills. Take the general Ed requirements while you search for something that might interest you.
Perhaps you can find some degree that will go well with your desire to invest in RE and serve you well in that regard.
thanks for the advice carlittle. You are right. Maybe I just need to get my work done when i’m supposed to instead of waiting til the morning of. I hate school sometimes, but I do have a lot of fun here and there’s definetely more to life than making money. What I really want to do is speak at high schools, maybe go through some of kiosaki or something. About the lots, I don’t really know much about them. I just get her the contact, and she talks to the people about them.
Folks…this is called speculating! Personally, I never ever speculate. I buy at 40% of the wholesale price and do not bank on future price gains.
This 18 year old is trying to do with this lot what college kids in 1999 were doing with tech stocks. Ask around of those same kids who did that in 1999 and see how many of them went on to gain and keep their profits.
You will get burned speculating.