OfflineHi Everyone,
I just got the Dean's book and I am currently reading it. I do have about 60k in cash I want to invest in RE. I was thinking of finding a rental property in that price range and paying cash for it, with hope of refinancing after a few months (6) to pull some of my money out. However, my credit is not that good , any suggestions on how to invest this money in RE. Should I split the money in multiple ways and do muliple down payments on maybe say 3-4 properties. Any suggestions is welcomed. Thanks
Houbizman
__________________
60k is a good starting amount. I would try multiple banks to try to get a loan if possible. Leveraging yourself multiplies your profits. Most banks I work with are requiring 10-20% down for investment properties but you do have some cash. You should be able to use 75% of the gross rents to qualify for the loan... assuming your credit score isn’t "that" bad, if you are below 600 it complicates things. I would start close to you in a neighborhood you know well, buy one that cash flows and has instant equity and go from there.
Also, if your credit score is lacking one quick way to improve it would be to pay off some of your consumer debt. Try to get your credit card balances below half of the limit ...the other big one is getting any judgments against you cleared up. It usually takes a few weeks to a month for these improvements to show up.
I don’t know your situation but hopefully you found a useful tidbit or two. Best of luck to you!
Brooks
__________________________________________________________________________________
Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best.
Theodore Isaac Rubin
WWW.MSPAgents.com