Posted by Brandon (FL) on February 10, 2002 at 15:44:09:
I’m in the same boat as you. I figure a time span on how long it will take to pay my debts off then plan of real estate investing on the same time line. I get more serious as I pay off more debt. I figure the time will come when I’m most comfortable.
Pay off Debt or Buy Real Estate First? - Posted by Tim Savage
Posted by Tim Savage on February 10, 2002 at 08:29:25:
I have a good income, but have a bit of credit card debt. I can pay it off, but it will take perhaps 2 years.
The question is: should I pay the debt off first before looking for real estate to buy or should I buy now and try to work about the debt load? My debt ratio is not bad. I can actually qualify for two average single family homes now according to a loan officer. I just would prefer to be debt free.
Thoughts?
Re: Pay off Debt or Buy Real Estate First? - Posted by GerryH VA
Posted by GerryH VA on February 17, 2002 at 21:27:33:
I am a firm believer in getting you personal finances straight before investing in real estate. My recomendation is to start very slowly until you are free and clear on the personal side. The first year or two (depending on your biz plan) requires a significant amount of cash (whether real or borrowed). If your personal debt load is too high, the business could scare you into quitting (as you acquire more debt) before you materialize your gains.
Good Luck
Gerry H
Re: Pay off Debt or Buy Real Estate First? - Posted by Bryan
Posted by Bryan on February 10, 2002 at 16:19:27:
I have a large debt to income ratio with an average credit rating and I’m getting enough education to be dangerous, and I’m going for it. My investments will help me to pay off my debt load.