Hello everyone, glad I found this site, I have been looking for a place to get some information.
Ok, here is my situation…
Currently I have 12k in cash and a credit score of 800 with a lot of student loan debt, car and one credit card. I'm a recent post-grad and I wanting to get into real estate. I've had the expierence of owning a home, I know a great deal about home construction and the permitting process. Thing is, I don't know the best way to start out. I was thinking of creating a company or corporation and get financing through the corp to flip and rent out properties, but I then thought…how much could I really get with 12k? Then I thought, well maybe I should just buy a property personally, but I would be confined to my cash (no extra financing) and thereby will be limited to buying one property at a time.
So I'm wondering what is the best solution or is there another solution out there that I haven't thought of that you could share? I live in California, so the property prices are high even with the economy the way it is. I'm not concerned about profit making because I know how to make an offer, it is the financing part that has me stuck.
Thanks
Hi mgerbi
Well this is an Australian based site, so can't really help you out on the finance side of things (although someone else on the forum might be able to help)
However some things are universal. If you're just starting out, you need to be creative and think outside the box if you don't have much cash. So, off the top of my head, how about researching the market and finding good deals, and "selling" the deals to investors?
Educate yourself as much as possible – the internet is a great source of info, so are libraries. Join or start your own investors club.
Is there anyone else in your life who you can do a joint venture with? The biggest myth I fell for is that you should do it all yourself – no, it's much better to have a more experienced mentor if you possibly can.And if it's financing that concerns you, find out as much about it as possible! Do hypotheticals – if I were to buy this proerty, what would all the costs, mortgage payments, mortgage term, minimum deposit, etc, be? How long before you can remortgage? Worst case scenarios, best case scenarios, coring and conservative scenarios.
Speak to people! Chat up local agents, chinwag with your banks finance officer, chew the fat with your friends, colleagues, bosses – you get the idea! Someone will say something or propose an idea you find interesting, then, you're cooking!
Personally I find the research/investigating part of the property process the most fun!
Bon voyage!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
