Hello,
I have been intending to start REI for years and have followed trends and this forum for quite some time. I have not made any deals, mostly out of fear I suppose. I am hoping to get some direction since im just fried. I have watched 3 properties I spotted in the last 6 months go up in contract to local investors. Enough is enough. Time to make my move. I’m not one to air my laundry or play the victim card. So what I am posting in not to get sympothy, but rather to get some direction.
I have been a stay at home mom for that last few years. My husband has been desperately trying to save his fathers company (which is our only source of income) but we have reciently come to the realization that we cant fix what his father keeps breaking.We dont see that income being secure after the new year. So I have to start bringing in money asap. I dont expect riches overnight, but need to feed my kids.
Here is our realistic situation:
We lost our first home to forclosure about a year ago (were too upside down to make it work, but I learned ALOT). Therefore have awful credit. We signed a lease agreement for a house that does not end until June 2013. We honestly are struggling to make the monthly rent payment as we had to reduce my husbands take home to try to keep his fathers business open.
So here is my question…With no funds, bad credit & bills to pay, and no hands on experience, but a serious drive, dedication, passion & no quit attitude where should I start?
Thanks for taking time to read my “rant” and for any replys I may recieve!
Hello LovinLifeAz,
Real estate is a business that requires time to get started. Whether you are a realtor selling houses a wholesaler finding and flipping deals, flipping the house themselves or owning rentals it takes time between the time you start and seeing any money. I would suggest that the worse time to start this business is when you need to money from this business. I would suggest getting your life stabilized first. Then start doing real estate. That looks from here like somebody needs to get a job and work out some of the unsteadiness before you get started.
So true. Bluemoon is the pro.
You need at least some money for 1.getting paper works and contracts, 2. travel and look for properties 3. advertising expense, this can be as few as $500 dollars,
so stability is needed. Credit…not so much.
Thank you both Bluemoon06 and DanielSun for your advise. Not exactly what I was hoping to hear, but I can take it. Going back to work is one of the ideas i have been consitering. I struggle with it due to the high cost of child care, I will look into it further.
In the interum I will continue my REI learning process. I reciently read someone recommending duplexes/multiple family units for the first investment, which allows for low living expenses if the owner lives in one unit. Would you two agree, should I start working toward that goal for when my lease is up?
Thank you again!
Starting out in a duplex would be a good idea but your foreclosure will still be pretty recent even a year from now. I agree with the others about stabilizing your situation and then starting to invest. I’ve been doing rentals for five years and don’t pull out money regularly for my family yet. I use that money to grow the business. If you can get and afford a mortgage for a small multi-unit property, great. I just think that may be difficult with current lending standards.
That is what i’m going for for my first home/rental property. Seems like a no brainer for someone starting out and plans on renting it out. And i’m not doing this to make money now, just to stop paying rent and get started in rei. And with a duplex I can start renting almost as soon as I buy it.
If you want to get into real estate, perhaps you should look to getting your real estate license. This is a great way to get some education and experience. The hours can be flexible for a mom. But, the classes will take some cash and real estate is not a get rich quick scheme. If you husband can stabilize his employment, that may give you the ability to look into real estate.
That being said, getting another loan for either an investment property or another house seems out of the question. What maybe available is a rent to own or a land contract. Both these options require little money down and are owner financed. This is a way to build up credit and equity at the same time.
Thank you everyone for your advise. Im taking it all into consiteration and will make some solid decisions. I know you did not have to take your time replying so I very much appriciate you doing so!
You need hands on experience. There is only so much you can get on this forum. Here’s what I suggest. Contact the local investors who bought the properties you were watching. Introduce yourself and tell them that you’re a beginner investor and would like to learn from a seasoned investor.
See if they need an assistant who can help them manage paperwork, do follow-ups, research, speak to potential buyers, etc…See if they are willing to pay for your services or maybe even pay you when the property sells. Worst case scenario, you can do it for free in exchange for the investor showing you the ropes. This is what I call OJT (On the Job Training).
Next, join your local REIA (Real Estate Investing Assoc). Based on your handle, I’m betting you’re in Arizona? Here is the website for the AZ REIA http://www.azreia.org/
As they saying goes–Birds of the same feathers flock together. You need to immerse yourself in the real estate investing world. Great way to meet other new beginners and learn at low cost. By doing this you will find the direction you seek.
Good luck.
That is a great idea joolkano. Ill definitely look into that. Thank you for the link, makes it easier for me to know where to start!