Pay off CC debt first OR get busy in REI now??? - Posted by Sheridan
Posted by Sheridan on July 20, 2002 at 09:38:09:
Is there anyone out there who REALLY has done REI with no downpayment?
The reason I’m asking is a relative who is very intelligent (but not into REI) told me he listens to a lot of talk radio with Bruce Willians (“Housewise”) and others talking about these deals. These talk radio guys supposedly have said that no money down deals are pretty rare, and a few years ago when it was a “new” concept it was easier to get these deals but now sellers have wised up with Carleton Sheets and his clones out there trying this.
My relative said these gurus on talk radio said first you must be totally debt free. (The reason I want to start REI is so I can BECOME totally debt free.) My debts aren’t huge compared to other people’s. I’ve probably got $10,000 in student loans, $3,500 in credit cards, and a vehicle loan with just 4 more payments to go. That’s it. And student loan payments won’t kick in until 6 months after I graduate, which will be about 3-4 more semesters.
It wouldn’t take too long to pay off $3,500 in credit cards, however my credit rating would not suddenly become stellar. I’ve been late with payments a lot, so that’s sitting there. I haven’t been late recently and I’m working on being consistent, but the late payments in the past might haunt me. And I would be taking care of living expenses at the same time which means there isn’t really extra money to toss at the credit card payments right now.
I’m about to start a part-time job while I’m in school, working on campus. Don’t lenders want to give loans to people who have been working for a while? For the last 2 years I have not been working – just full-time school.
And I’m starting a homebased business that I hope will really take off and help pay my living expenses so I will need less student loans. Hopefully this biz will give me some cash to work with so I can have a bit of a downpayment to start doing REI, or work on paying off the credit card debt if I go that route and believe the relative’s theory.
Sounds to me like my relative is thinking in terms of the “traditional” way to buy real estate rather than the more creative ways. He’s telling me the creative ways don’t work that often because sellers are wise to the late night tv infomercials. And he said, “Why would anyone accept your offer with no money down? They want money in their pockets.”
Should I back off and start smaller, like with mobile homes, and build up some cash from doing a few of these types of deals and THEN start working my way into flipping houses, acquiring rentals, and offering lease/options to people? There are several mobile home parks in the area. One is nice, two are mediocre, 3 or 4 are really trashy, and there are a lot of brand new mobile home dealers in the area and lots of people putting them on land. Would be great to start a nice little mobile home community in the area and keep it looking nice rather than letting it fall to pieces.