Hello everyone,
just want some advise, you here how single family and low income earners get money to invest but how. I have found this great property that is up for sale for 200,000.00 in the area that I live and I know that it is a bargain. I have not looked on the inside but going by whats on the net its a property that you can add value to eg. dirty carpets from pets you can actually see the stains and it needs new curtains as it only has sheets on the windows, its in a area that is 10 years old. My situation is very poor, eg 3 lovely children, rent, credit card debt, personal loan debt x2 no savings, on of the personal loans I have managed to pay a good amount of since January eg 12,000.00 now owe 7,800.00 and have managed to pay a family debt of 4,600.00, hubby has a business that we actually have a car in our personal names for even though the business pays for it.
and I for got to mention that I,m also studying at the moment which I still have 1.5 yrs left of my course, I do work as well bit its only 3 days a week now.
So what do I do? How do I get this property? I have been wanting to do property investing now for 4 years and still have not achieved it. Banks want look at me, Mortgagee brokers we have to produce so much infomation and then I would have to put some money towards it.Help any advise
regards
Have you done a budget?
OK..sounds like you need help. Those personal loans are your hindrance. Sounds to me like you need to think about financing from a low doc lender, also known as non-conforming lenders. They will look at your situation and propose a loan. HOWEVER, I think even they will be hesitant. Some things you can do:
1. Borrow money from family/parents/friends for deposit.
2. Make your personal loans "disappear" by repaying these first..lenders will like you more if you have no personal debt.
3. Sounds like you are having a lot of difficulties getting started, maybe you can go into the property with another person or two people…this to me seems by far the easiest way to "get started". You will have to convince the other parties about the possible returns, have figures ready.Just a quick statement. ANY IP/PPOR you are looking at, when you're starting, you will need some money..start saving!
Well I had a look at the property, and I put an offer in 195,250.00 subject to finance of choice. You know everyone talks about the fear factor I would have to say that it was the most scary thing I have done, but exciting at the same time. If the offer is not excepted so be it. It was a good experience
regards
Hey Dr Spock,
Steve once said 'theres two types of debt, bad bebt and worse debt' I think everybody has been in position that requires budgeting, and I know what it is like to be there and have the desire to invest, I think what you have acheived in paying of some of your bebt is Fantastic, well done, as far as saying there is a point that you reach where its now ok to invest would be quit silly, what it realy comes done to is you need to take a real good look at your position and ask yourself 'Can I realy afford to do this", I'm not trying to crush your faith in this, i think I can say nearly everybody I know is in debt in something, so thats not the real issue, just dont bite of more than you can chwe, there will always be deals out there if you miss this one,
All the best
Wayne
I agree with wayneross; there is a deal of the century every 5 minutes, so don't worry if you miss this one. But there are more concering issues that need addressing first. Your personal debt.
What is the rental return on this property?, what are the rates?, is it likely to be cashflow positive if you buy it? because by the sounds of your post I don't expect you could carry much negative cashflow right now.
Did you know that around 20% of the rent is eaten up by holding costs each year; and that doesn't include the loan interest?
You need to know all the numbers involved to select a successful property investment.
Successful property investing requires excellent monetary control, habits and financial knowledge.
Based on what you've posted, I think you need to get your Personal finances in order first, and adopt a different mindset to handling money. It is good to hear you are decreasing it now, but the creation of it in the first place says something about the way you handle your money.You need to treat your Personal finances like a business and run them like a business; then hopefully this mindset and good money habits will flow over into your investing when you begin.
Please don't think I'm picking on you Dr.Spock; I want you to be successful and wealthy, but there are some basics that need to be in place first.
A fantastic book you should read for getting out of debt and back on the right financial path is the "Money Secrets of the Rich (the seven money steps)" by John Burley. He has a great formula for getting rid of Personal Debt called the Debt Eliminator in this book, as well as hundreds of great money saving, lifestyle improving techniques.
No one likes doing budgets, but the reality is that successful businesses ALWAYS use them, and investing is a business, so it would be a good first step to sit down and work out how you can maximise how much cash you can save through trimming off the "wants" and only focus on the "needs" unitl the debt is gone. I won't kid you; this is a hard reality to face for most.
The first move should be to cut up the credit card(s) and only pay cash. No cash; no buy.
well its me again,
the house sold for 201,000.00 and i must say that buy just putting in one offer it has tought me a lot, thank you for your replies i think now looking at it i was feeling frustrated and wanted something to happen, deep down i know that i am not ready, and now looking at it, i would off been out of my depth, but im going to look at the positive side to this and that is that i now know how i want to start my property investment.
regards
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