OfflineI have been very interested in Real Estate investing for many years now. I went to the real estate expo when it was in philadelphia 4 years ago, as well as purchased many books on finding properties and flipping them, as well as buying Deans "Be a Real Estate Millionaire" book and Think a little different package from the infomercial. I purchased most of this stuff years ago and have read it all and have tried to build my knowledge up on it. I just have not been able to actually act on it. I guess i get too scared or have to many concerns or questions as to where to start.
That being said, Im currently 27yrs old and have had some hard times in the last few years. I moved back into my parents house a few years ago and feel like my life has been at a stand still waiting for something to happen instead of making something happen myself. I finally need to make a drastic change in my life and get out of my parents shadows. I have been pre-approved for a mortgage of $230,000 and am just nervous to take that big step of owning something especially with the economy and the unstable industry of contruction that i currently work in. So here have been my ideas to make a move or change in my life regarding real estate. And some of my concerns/questions?/
I have been looking at properties on Zillow, foreclosure.com, and the mlsfinder. i try to focus on properties that are foreclosed or on short sale. How do i know i am getting a good deal on a foreclosed home?? i feel as though the price may show as under valued on zillow or forclosure.com but by only $20,000 or $30,000. Also when i look at comps they seem to be selling for around that price but i also fear the market will still go down. Should i look to buy a house to live in for 1-2 years or buy a forclosed property that could use some upgrades and put it back on the market right away. Basically i am looking for some ideas. I have a pre-approval of $230,000. but do not want to fully extend myself so i am looking at houses around $200,000 hoping to land a deal for around $170,000. I guess i have been also limiting myself to certain areas i may want to live in, in case i cant sell the house for what i want and am sort of stuck with it.
Also if i was to keep the house for now, how do i continue to posiibly buy other properties that are under valued that i can fix up on my own and sell right back? will banks give me a investors mortgage?
There are just soo many different options and ways to go about things im just nervous about making that first move because i want it to be as profitable and correct as possible.
Fr anyone who actually read all this thank you for your time and advice. As you can see i really just have so many hesitations and uncertainties about what i should do or how i should get started. - Rick
You are in a good place right now. You have so many options. One place you can look is homepath.com and look up homes in your area. You can get a loan for as low as 3% down if you are going to live in the home and money to fix the home up from homepath. If you buy the home right you will still have money you can tap into to invest in other homes. homepath homes are all REOs and most need some work.
If you stay at home with Mom and Dad you can buy homes and fix and flip them.
You only have to pay investor rates if you are not going to live in the home.
Keep reading on this site and you will see what others are doing for investment homes.
Rick what part of the US are you in.
Steve
Steve and Veronica
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Steve,
First off thanks for taking the time to read my post. I live outside of Philadelphia, PA. Understand the idea of getting a FHA loan where i only put down around 3%. I guess im just scared to make that jump and still dont know if i can get a house under valued enough that will actually sell in a year or two for what the comps are showing in the area. I also fear that the housing market will still go down and also that people just arent going to be buying when im ready to sell.
Question: if i found a house posted for $230,000 and could get it for $170,000 or 180,000; and only have to put a few thousand in worth of repairs, would it be smart to just put it right up on the market and see if i have any buyers and just let it sit there on the market as i continue to live in it? or is it bad to let a house sit on the market like that?
Hey Rick, if i was you, i would keep myself as debt free as possible in this VERY unstable economy!!Just because you"ve been pre-approved for $230,000 doesnt mean you should extend yourself like that,unless your gonna flip that house,or use one of Deans stratigies to make a profit on the house. This economy is much more unstable than the government, or the banks are telling us, plan your steps carefully. SO WHAT, your living at home with your parents (and im sure that can be a challenge), but its also an opportunity to make some deals, save some money, keep yourself out of debt, and when the time is right make your move.God Bless, MIKE
Here is some information from Homepath.com. One thing you might want to do is check out the 2-4 unit homes. You can live in one and rent out the others.
HomePath Financing
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.
Lender List - At a Glance
--------------------------------------------------------------------------------
HomePath® Renovation Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.
If you're an investor interested in renovating a property, you may qualify for financing under our HomeStyle® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well. For more information, contact your preferred lender.
Rick check this site out. If it was me to do deals all over again I would live in a home that I got for a low price fix it then rent it out and buy your next one and do the same thing untill you get your dream home. There are so many other ways to invest also so don't just do one thing unless it works good for you.
Good Luck and God Bless.
Steve
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
This is a lot of good advise. I am kinda in the same boat as Rick. I lost my job last year and have lost just about everything. When I read Dean's books it gave me hope. In the neighborhood I live in has so much potential. There are at least 6 condos on the market and feel that I could make a lot of money here. I just don't know where to start. I have no money and my credit is poor. Does anyone have some advise as to where I should start? I want to find sellers and buyers for these properties. Perhaps even own one that I could live in if it is possible. I live in Maryland right now but my goal is to move to Florida in the near future. But I know this is something that I could make a lot of money and be free from struggling. Just afraid I guess. Just need a start and once I make my first deal, I know that I will be confident enough to keep going. Any advise would be greatly appreciated.