HI laz, I am just like you I have to credit cards maxed out and I have a home equity loan drawn to the fullest which I pay only the minimum payment. My fico score dropped cause of this from749 to 610.
Ok enough complaining here is what I did. First I met a neighbor that has an equity line of credit of 100k and we became partners. Then I WENT TO AN REAL ESTATE investor that is looking for deals to flip, and I made a deal with him that I would find deals for him. I get 4000 for each deal I bring him that he eventually will take. And another 4k if I sell it for him
If you have questions please don?t hesitate to ask me
Joel
Ps. it is very hard to start, just know it. After recognizing it will be easier
I am here in NYC to so we can be in touch
I’ve poured over this forum and the “How To Articles”… but when I look at the lis pendis, REO’s and FSBO’s here in New York City, the creative strategies don’t seem to apply. (Mind you, I’m a newbie).
The prices here are 90 to 100% of FMV and the sellers are “firm” in their prices. Maybe they smell “rookie” when the see me - I don’t know.
I thought about Hard Money Lenders (my fico score is 605, I’m a temp and have American Express judgement - which I’m paying back for the past 7 months); but would they even deal with someone like me?
Add to that the trouble finding properties I could get for 65-70% LTV… and well, I’m still renting and temping!
My goals:
(1) get cash when I buy (minimum $5,000)
(2) get rid of the property - fast! (I can’t afford to hold them)
How can I do this when its’ a sellers’ market, and I’m not an ideal “borrower”?
Thanks for your input - this forum rocks!
[Some info on me: fico score 605, working on/off as a temp in law firms since 1999, AMEX judgement- which I’m paying on, about $2,500 cash at hand. ]
Yes it is a tough market. Not easy to find houses for $55K here in NYC.
Get rid of the AMEX chargeoff by offering to pay off the judgement (at a deep discount) if they report it to all credit reporting agencies as a dispute. Explain to them that you have only been working temp positions and that there is no guarentee that you will be able to continue payments in the foreseeable future. This is to entice them to accept your offer. Be sure to get the letter or agreement in writing first before sending any payment. Have the funds ready ahead of time. When they give you a pay off quote you will likely get only 10 days for them to receive the funds. This will clear up your credit. Just getting your credit above 620 will open phenomenal opportunities.
Try improving your compensation by shifting into some real estate related field such as mortgage underwiting. This will give you exposure to financing considerations from the inside and a potential career track. You might do mortgages on the side to earn additional income.
Join a Real Estate Investment club to learn more and to get exposure to other operators in the field. Visit www.lireia.com, the Long Island Club which meets in Melville or gsreia.com, the NJ club that meets in the Newark Marriott. There is also a club ran by Wesley Barney that meets in Manhattan. I think it also has a good following. Visit the menu selection on creonline.com for Real Estate Investment Associations or visit nationalreia.com. They are excellent opportunities to get exposure to people who are investing.
I also got discouraged with the NY market and bought a HUD in Orange, NJ. However there are opportunities here in NY for flips, vacant houses which are being bought up fast at top dollar, short sales, and vacant lots. But with decent credit and maybe an investor mentor found at one of the investment associations you can make things happen in NY.
Until you get experience you might consider working flips. The Ron LeGrand programs are excellent resources along this line.
i also live here in nyc, am not experience, but i have a house which i bought about 4 month ago, and am now working on a 7 units buiding deal witch 2 partners, when i first bought the house my score was about 610, i didnt had to put in much on the deal, 5k to get the price down more from the seller which is a real state seller, he took care of all the paper work and basically did almost everything for me, if you want more information you can drop me a line
Re: NYC Market Tough - how can I invest? - Posted by SoCal_Dennis
Posted by SoCal_Dennis on July 31, 2003 at 13:12:56:
I hear ya Laz. I have the same problems here in O.C. Calif, and unfortunately I’m a rookie too. Since I have no advice to give, I just wanted to say good luck! Maybe someone can answer both our questions. =)