OfflineHello Everybody!
I just finished reading Dean's latest book. I'll be honest, I'm scared out of my mind about taking the first step. Although everything I read makes sense, I just can't believe real estate investing could work for someone in our situation. I'm sure you guys have heard this time and time again....I hope you don't mind another newbie.
I'm hoping to hear back from some of you who may have had a similar financial situation or obstacles as my husband and I. I hope you can share some of your specific experiences and how you overcame some of these obstacles....
1. My husband and I are typical lower middle class Americans. We live comfortably, but pretty much paycheck to paycheck.
2. We do not have much in the way of savings or funds that we could use to put down on investment property.
3. At this time, we have little equity on our home and it already has two mortgages.
4. My husband and I have a bankruptcy in our names from approximately four years ago. We had a business that went south and had to file. We did not foreclose on our home or any other major assets. Pretty much everything that was filed in the bankruptcy were credit cards and lines of credit.
5. Currently, our credit scores are in the low to middle 600s. Therefore, I doubt we'll find a bank willing to loan us any money for investment property. I admit, I have not done the research, but it just seems out of reach.
6. We do not have much debt other than our mortgage and cars.
So, there you have our situation in a nut shell. Have any of you successful investors been in a similar situation as ours and were able to come out ahead? Would you mind sharing some insight with us?
As I read Dean's book, I was lifted by some of the stories, but it seemed to me that the majority of them were from people who had the ability to get bank financing OR had money to put down. Stories where people didn't put any money down, just seemed to be extremely lucky. Is this the case?
I look forward to your responses.
Andrea
Hey, welcome to the DG family. Good to have you here.
Although in the past I have bought properties on our own credit or financing, my last 5 deals I needed/wanted to go a different route, just because the number of hits on our credit this year (from all the transactions) brought my score down some. So I know first-hand that the assignment of contract, double-close, and flip using another investor's money are at least three strategies I've used that would work in your situation. Bird-dogging would be good, too, although that typically doesn't give you as much profit per deal. You'll hear lots of stories along the same line. That's the neat thing about Dean's programs. He gives you so many ways to make money, no matter what your situation.
Hope that helps.
Wish you all the best in your REI!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Hi Andrea. I can totally relate to your situation and I am sure alot of people here can as well. Just like Rina say's assignments and bird-dogging can and do work for folks that are credit and cash challenged. They are a good place to start for REI. The hardest part is getting over your fear of actually doing it. Look around this site and check everything out. There is alot of great information here and awesome people here to help you out. Good luck and I hope all works out for you.
Thank you so much for your comments. I will study the website for more help and ideas, but you've given me hope. My husband is reading the book now. I've started to looking in my area for possible deals. We'll see.
Congratulations on buying Dean's book and being a part of the DG website community. Each day you will learn a little more and that knowledge will enable you as a real estate investor! You will have no fear after you continue to gain more and more knowledge and then you will close a deal. The first one is usually the hardest. I would suggest reading Dean's book a few times. It is packed with great information. So as Dean states if you have no money or no credit, you can still make money in real estate! Read the book and take notes of the concepts and your own ideas of how to make money in real estate. Then take action. You can do it! Believe and Achieve!
Indiana-Joe
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I live in philly and its crazy how many re investors are out here!! There's an establishment "we buy houses" every where!! the problem? i cant assign to them because i will not make much profit-they want 60-65% of ARV of FMV!! how can i mut in an offer for 70-75% off the FMV, wouldnt that be insane? or maybe it just me.
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
Hello ivanessa89,
You may want to find a deal and make them the offer. Or if you find a few deals there may be profit in numbers. Also, make low offers say at 40% to 50% and make sure the numbers work for ARV etc. Like Matt Larson stated in Dean's book, it becomes a numbers game of a lot of offers. Eventually a few offers will be accepted and then you can assignee them for a profit. Good luck will all your deals. Believe and Achieve!
Indiana-Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
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everybody is playing it. i just am having trouble doing that first deal. i want to make offers-but i need the houses. i have the buyers already maybe 20 or more at this point. like i said before there are a lot of investors here looking for properties and that francise "we buy ugly houses" hey guess what the owner told me???
"i dont buy from investors, i sell to them....i am on top of the pyramid and everybody else is on the bottom" !!!!!!!!!! CAN YOU BELIEVE HIM, he even demonstrated what he meant by making a pyramid with his hands.....
he will come to ME FOR DEALS, I cant wait...
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<