Real Estate

[Ciggalicious]

Re: Real Estate

From my experience, the job thing will be your only hold up. Most lenders require 24 months but some will do 12 months. However, I like the hard money idea but my experience with those guys is they only give you about 70 to 80% of the 'fixed up' value. For example, if the home is worth say (for easy numbers) $100k fixed up, they will give you 70k to 80k in cash. Now, if you can buy if for less than that, you are in good shape. I know this because I'm working a deal with a hard money guy to get some fix and flips in a city to the south of me. This guys gets 4% up front as a comission so to speak and the rate is high. The trick is to fix it quickly and then offer a nice incentive to the agent that sells it within 30 days. They will show the house more than any other if they know they will make an extra grand or two. I'm talking low end homes, but I will be able to make anywhere from $10k to $20k per home. It's a crap shoot, but as long as I come out with no less than $10k, I'm happy.

Investment properties are the way to go. 80% of the millionaires in this country go there using Real Estate investments, and that's a fact. Less than 5% of millionaires in this country got there through the corporate world. You are taking the right path. Now, let me let you in on a little secret. If you live in the home 2 years out of 5 and then sell it, you are exempt from capital gains taxes. So, the trick is, buy the home, live in it for two years, rent it out and move on to the next one. Three years later, sell it and pay nothing in capital gains. For me, that's not feasible because I'm married and my investment properties will cost less than my primary residence and so it's very hard to convince a bank that you are down sizing your primary residence. At least, at my age with young kids, it's not practical so I just play it honest.

Let me know if you want to talk more about it, this is what I do so I will give you any info I have. Also, because I'm an appraiser, I know a good deal when I see it so that gives me a big advantage.

I appreciate it big time man. As I move along and things start to progress I will pick your brain to see what you think or if I got any questions which I'm sure I will.I have to wait for a little while anyways because I got 2,500 locked up in a 6 month cd.But it gives me time to do homework on it.Thanks again.

[Ciggalicious]

Re: Real Estate

first off,

super super congrats on having saved some money at your age and thinking like this, starting early is the greatest benefit

22 here, it was investment prop, had a job and cosigner

hmmmmm, find a piece of total junk 40-50% below market in a decent area, get your hard money loan, put in the sweat equity, refinance it, and once the work is done, you should easily have 15-20k instant equity, it also keeps your payments low

be patient, go look at 30-40 junkers, put some effort into it, don't be afraid of foundation work, unless it's got a ton of cracks and sags etc.

kitchens and bathrooms, put the touches in there

good luck

do the first deal 100% correctly and that sets you up, too average up and up and up with confidence

Thanks bro I appreciate it and to the rest of you all as well

[whitetail]

Re: Real Estate

tman gave some great advice. i bought my 1st house when i was 21. Got a FHA loan 3% down. Very realistic amount of money to come up with IMO.

[DJDIGGLER]

Re: Real Estate

It's worth a try bud, but with those Arm mortgages that have devastated the lending market, lenders aren't so quick to give out mortgages these days. They are much stricter than they were a year ago.

Still worth the try though, because the best time to buy is when the market it down!