Real Estate Investing
#31
You agree that people with low credit don't really get the best deals;
And that's exactly my point......
We are talking about investing here, not 1st time buyers...
PROFIT IS MADE WHEN YOU PURCHASE, YOU JUST ENCASH THE PROFIT, WHEN YOU SELL....
I am not at all saying that guys with LOW credit scores have no right to buy a home or pusue their dreams but what I am saying is that investing is a serious business & requires a lot of financial discipline & reserves....
If some one is a 580 or 600 FICO, then 1st thing he needs to understand is why is he 580 or 600???
Most likely due to high credit card debt & collections and or late payments...
This type of guy with a 580 - 600 fico, needs to first get his own house in order, bring his credit accounts current, lower the revolving credit balance, save some some money for reserves & repairs....
Then he should think about real estate investing.....
Every property owner should have 3-6 months of payments in reserves, plus some money for unforeseen repairs.....
Even with 1st time buyers, If there are collections, the collection agencies will purse him & soon as collection companies find out you own a property, they will get a judgement & put a lien on the property.....
If anyone thinks otherwise, they are living in eutopia....
And that's exactly my point......
We are talking about investing here, not 1st time buyers...
PROFIT IS MADE WHEN YOU PURCHASE, YOU JUST ENCASH THE PROFIT, WHEN YOU SELL....
I am not at all saying that guys with LOW credit scores have no right to buy a home or pusue their dreams but what I am saying is that investing is a serious business & requires a lot of financial discipline & reserves....
If some one is a 580 or 600 FICO, then 1st thing he needs to understand is why is he 580 or 600???
Most likely due to high credit card debt & collections and or late payments...
This type of guy with a 580 - 600 fico, needs to first get his own house in order, bring his credit accounts current, lower the revolving credit balance, save some some money for reserves & repairs....
Then he should think about real estate investing.....
Every property owner should have 3-6 months of payments in reserves, plus some money for unforeseen repairs.....
Even with 1st time buyers, If there are collections, the collection agencies will purse him & soon as collection companies find out you own a property, they will get a judgement & put a lien on the property.....
If anyone thinks otherwise, they are living in eutopia....
I agree with you 100% about the reserves and credit for investors. My intention was to respond to the general statement you made about sellers in their right mind doing owner financing. There are several reasons for that and most are legitimate in the present lending environment.
All that said, if you want to be a buy and hold guy then you need credit and money. There's really no way around that if you want to go solo. Some investors get around that by partnering. One is the blood, sweat, and tears partner and one is the money and credit guy. I've also seen a lot of partnerships where one has money and bad credit due to recent divorce and one has great credit but not much money.
I think wholesaling is the best use of resources for someone looking to gain experience and raise the cash to do their own deals down the line. Next to that would be partnering and then finally waiting until they gain the cash and credit from other sources.
#32
Not right
Pity that you didn't put as much effort into researching and networking your aviation career (such as it was).
Something doesn't jive here... you have many times stated that you were so poor as a pilot you had to live in your car. Yet here you were buying, selling and building homes the whole time...
As usual with your tales something doesn't seem quite right.
Best regards,
Clutch
Something doesn't jive here... you have many times stated that you were so poor as a pilot you had to live in your car. Yet here you were buying, selling and building homes the whole time...
As usual with your tales something doesn't seem quite right.
Best regards,
Clutch
Skyhigh
#33
It is right. There were circumstances that I have not shared with you yet. Please do. I'm breathless with anticipation. Any yes I researched the career as much as a pre-internet kid could. Talking with an AK pilot at the town dump is not researching. However, it could be construed as networking. Every FAPA magazine issue listed major airline new-hire classes and where they came from. Easy enough to see what your chances were of getting hired at AK were.
Skyhigh
Skyhigh
is when you paint all airline pilots (anyone who travels for a living, actually) as sociopathic, uncaring, selfish, fools. It is very insulting and flat out wrong. Keep telling yourself that though, if it makes you feel any better about your failed aviation career.
I have a failed career, too. That of U.S. Marine officer. In my case however, I can see that the blame lies entirely with me and my lack of maturity at the time. Of course, I could say that the job doesn't pay too well, involves siginifcant time away from home, and is very dangerous and so was not worth the effort. Better to be a grocery boy!
Sorry, thread creep. I shold move this to 'Leaving the Career'.
Regards,
Clutch
#34
Gets Weekends Off
Joined APC: Apr 2011
Posts: 620
Hey BC,
I agree with you 100% about the reserves and credit for investors. My intention was to respond to the general statement you made about sellers in their right mind doing owner financing. There are several reasons for that and most are legitimate in the present lending environment.
All that said, if you want to be a buy and hold guy then you need credit and money. There's really no way around that if you want to go solo. Some investors get around that by partnering. One is the blood, sweat, and tears partner and one is the money and credit guy. I've also seen a lot of partnerships where one has money and bad credit due to recent divorce and one has great credit but not much money.
I think wholesaling is the best use of resources for someone looking to gain experience and raise the cash to do their own deals down the line. Next to that would be partnering and then finally waiting until they gain the cash and credit from other sources.
I agree with you 100% about the reserves and credit for investors. My intention was to respond to the general statement you made about sellers in their right mind doing owner financing. There are several reasons for that and most are legitimate in the present lending environment.
All that said, if you want to be a buy and hold guy then you need credit and money. There's really no way around that if you want to go solo. Some investors get around that by partnering. One is the blood, sweat, and tears partner and one is the money and credit guy. I've also seen a lot of partnerships where one has money and bad credit due to recent divorce and one has great credit but not much money.
I think wholesaling is the best use of resources for someone looking to gain experience and raise the cash to do their own deals down the line. Next to that would be partnering and then finally waiting until they gain the cash and credit from other sources.
I agree with you 100%.... SPOT ON .......
Excellent advise for a guy who is is starting out and who has no money at all..
Another thing that I would like to add:
Even if one can't find a wholesale option & while debating on how to get started.
Just join a investor / flipping group, as the run around guy & help them with the projects, like working as a site manager, buying stuff from the home depot....
Offer to do this in your spare, free time, which most people spend watching TV... Offer to work for free if you have to do that, just to get the foot in the door.....
Staying at the site itself, will give a person tremendous exposure & eventually experience in remodelling. That kind of person, eventually, would just look at a property & know how money he needs to spend to Flip & bring rental grade or Flip & sell, what would be cost to repair a certain item, how to get things done for cheap.....
Even if someone worked for free initially, on a few projects, the knowledge gained would be priceless, which will help not only in Flipping but also in maintaining a fleet of rental properties....
It is very similar to "working as a ramp rat", almost always used in aviation.....
#35
On Reserve
Joined APC: Sep 2012
Position: C-17
Posts: 10
Great thread, keep it going! Any suggestions for how to find an "investor / flipping group" in the local area?
I'd like to get started in this area but have minimal cash... if I could work toward some experience as I work on the cash area it would be great.
I'd like to get started in this area but have minimal cash... if I could work toward some experience as I work on the cash area it would be great.
#36
You can search for REI clubs, there are usually a couple in metro areas
Not to promote other sites on here, but BiggerPockets has got a plethora of info about these subjects. Lots of articles and forum discussions to browse.
Not to promote other sites on here, but BiggerPockets has got a plethora of info about these subjects. Lots of articles and forum discussions to browse.
#37
#38
New Hire
Joined APC: Dec 2011
Posts: 2
What about becoming a realtor? I'd like to be an investor, eventually. But as a regional FO, money is a little scarce right now. Would being a part time realtor be something worthwhile to start out in the real estate field? I'm pretty sure I'm going to try it out but I'd like some thoughts from some more seasoned real estate investors. I'm hoping that I don't have to rely on aviation as my main source of income in the future. Thanks.
#39
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,037
#40
I was raised by very money-conservative parents. So for years I had an "I can't afford it" mentality. A quote from a popular book put it succinctly "poor dad said I can't afford it, rich dad said how can I afford it? Having said that, make sure your comfort level is such that you can still sleep at night.
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