Do you have good credit? I purchased my first house 3-4 years ago because “I like fixing up houses” and knew real estate was a “good” investment. At the time I didnt know much about market value or financing but I got 100% financing for the purchase ($22,000) and improvements ($12,000). I held it too long but still was able to cover all my expenses on a 15 yr mortgage with the monthly rent. Today , I would not have done that deal because I now know more about fair market value, repair cost, and financing cost; but it is still making me money. The loan requirements are tougher now. Where I am you need some cash or equity and decent credit to get most financing. I have used a credit card for a down payment but you have to be careful. It gets easier as you go, the more you learn. Educate yourself on FMV. Start with inexpensive properties in average neighborhoods. The beauty of buying distressed properties is even if you make a mistake , you should at worst break even. You can buy a good real estate investment book for less than $15 and read good articles on thbis site for free. If you are serious, enthusiastic, and persistent , you cant help but make money and retire early.
Posted by Kevin Tucker on April 14, 2006 at 12:16:57:
Hi. I have no real estate investing experience but have ideas for improvements/developments. I don’t have any money (cash) to get started. What is the best option for me? What type property should I consider starting with?
Quote…“I have no real estate investing experience”
Hi Kevin,
Non of us had REI experience before we started. No one is born a RE investor. At one time we’ve all been where you are.
There are two keys to this: 1-Knowledge, 2-Taking action. You gain the knowledge by reading books, articles, and this website. And you gain more knowledge by attending seminars and REI programs.
To do so, join your local REIA. (Real Estate Investors’ Association.) You can probably find one listed here:
Go to the meetings and go to any SIGs they may have. And keep reading, studying and learning.
Then TAKE ACTION.
Did I say, “take action”? Yes, take action. Without it nothing happens. The result of doing nothing is nothing.