I'm new to all this. How can you make something out of nothing in real estate? I'm looking to buy some investment property within the next year. I have the credit (784 FICO).. but my income is less than 50k a year. What's the best thing for me to do to get started? Any advice would be appreciated.
Get with a Realtor that specializes in foreclosures. Ride around on the weekend and look for abandoned properties. If you can not do home repairs yourself you will have to concentrate on homes that only need cosmetic repair. If you can make repairs like plumbing, electrica, drywall etc you can go after distressed properties that you should be able to get at prices below market value.
Investment property Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment. Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile. For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month. * We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA. **If you have large down payement, the rate may be lowered.
If you own your own home, you may have equity built up in it. If so, you could use this money as a down payment on an investment property. With your high FICO score, you will get good terms with a loan. If you do not own a home, BUY ONE!! Talk to a lendor and see what your options are and what you will have to do to purchase one. I bought my first home 4 years ago with $2,000 that I borrowed from an ex-girlfriend; since I have turned that home into 7 properties by this process. Last, search for deals, search for deals, search for deals; if you can find a good real estate deal, you can find money to purchase it - at the least, you could partner with an equity partner that would be happy to be a part of a good deal. Good luck!
Join your local Real Estate Investor's Association and learn. REIA's (pronounced Reeah) are groups of people that are interested in investing in Real Estate. You want to talk to these people and find out what they know. I would also try to find someone who is already doing this and see if they'll teach you or let you tag-along with them and learn.
