I bought a house two months ago in Atlanta, GA. I got the house 50% off market value. Instant equity 60K. While I was looking for my house I ran across a lot of houses that were under 30K. I really want to become a real estate investor, but I only have 10k. My whole family is aganist it, and insist that I finish college. I don't want to quit school, I just want to have some investment properties. Can someone please help!! I want to know what the best way to start investing, and if I am crazy for wanting to do it.
1. Don’t wait for the right time. 2. Start bigger, sooner. 3. Don’t sell appreciating assets just yet. 4. Invest using a self-directed individual retirement account (IRA).
Just remember there are more expenses with owning property than just the cost of buying it. Leave room for and allocate funds to cover property tax, maintenance and upkeep, repairs, insurance, natural disaster recovery, assessments, roofing/siding/driveway, etc... Don't ever extend yourself. You don't seem to have a lot of capital to start with so take things easy and BE CAUTIOUS in this economy. Best of luck to you!
You have to make the houses you invest in work for you. You have to rent it out so that the tenant pays your mortgage. You're not making money on the tenant. You make money later on when you sell it. You need to invest in multifamily units (apartment buildings) to make money on the tenants. With the equity you build in the house over time you then take out another mortgage to buy another house. And so on and so on until you have 20 houses. This can take decades. Financial riches take time. Now you have 20 houses with 20 year mortgages. If you time it right you will pay off the mortgage on one of your houses every year. Then you remortgage the house and pocket the loan money. That's an oversimplification, but that's basically the idea.
I'm in your same situation, I have been wanting to invest in real estate and my family is against it. But I don't understand why because my family are all realtors and investors or builders. But anyways, I am fortunate enough to have money in stock market that IS doing okay and I can borrow against it to purchase homes. But in your situation, I would try to get a home loan and purchase these homes as extra properties to add to your real estate portfolio, or if you can't get a loan, try to find another investor that would be willing to split the investment with you. Make lots of money and I hope this helps!
