What to do? - Posted by Matt
Posted by Matt on November 24, 1998 at 02:08:20:
I’m not quite sure where to begin… all I do know is I belive real-estate to be an alternative to traditional means of making ends meet. O.K. heres the problem… I’m just 18, a senior in high school… who would lend me money? I suppose I’m possibly a “C” credit rating at best, but probably not. Currently I have two crazy ideas. The first I can do, the second (HAHAH) yeah-right.
- I have heard about something called “Section 8”, that is the infamous low-income tenant housing division of HUD, in other words I would be providing housing to underachievers and continue the essence of “the Projects”. I’m not quite sure how to become a certified “Section 8” house, but it probably involves money. In a neighboring mid-west city (average home cost about 96k), I have found housing in an area better off destroyed, the avg. home in this slumland is about 15k, this home is in unsightly condition, but nothing structural is problematic. It cost about 7k, in fact I have found 3 homes, 7k, 8k and 11k. There’s nota chance I can do any creative seller-financed buying… because these people are moving from one rat-dump to another. And a mortgage for me? At so little? HAHA, so I guess that means I’m going to have to convince a lender… Oh, on top of not having graduate HIGH-SCHOOL!! I haven’t lived at the same address for more than 3 years, and I’ve just started my second job, (the first lasted 5 weeks!), my income is 6.50 / hour, and 30 hours of work a week. That’s slightly under 1k / mo, I know that on housing (a house or two) this cheap, theres no way I can miss a payment… but I’m sooo young. (22 is old… :-> I also suppose that althoug I have more than 37 hours of college credit (!!! how you ask? !!!) that doesn’t matter… I don’t even have a diploma! Not to linger on the topic.
- Ideally, I can avoid the guilt and shame of providing someone I’d be afraid to meet in person with sub-standard housing (by my grandpa’s 96k housing standards), and get into apt. buildings. Recently 108 units, cash flow of 50k, was sold for 700k… 700k! How in sam-hill can I even cough up 1% down-payment! So… that’s clearly out of my ball park. I’ve looked at duplexes and quad’s, but the rental-business would barely make me break free at estimated 13% and 15% interest rates (!!).
I know I have a good deal with the lean-to’s, (provided Section 8 is all it’s cracked up to be), I just can’t get the finacing for either the house or the closing cost. Ack! What do I do? Fall asleep, avoid easy (not easy, but not as hard as Wal-Mart) money, rack up 1k’s of $ in debt to Sallie-Mae while I work up a B.S. to flip burgers at McDonald’s?? Real-estate could help put me through school, and not have to worry about “tommorow” or have to work full-time to subsist in my own “lean-to”.
Oh! I suppose I could have someone co-sign, but my mom has a BK from last year, my dad’s a goner, and my grandpa (net wealth of 750k) is a supreme tight-wad (^_^), theres basically no-way he’ll sign
Well… thanks a lot to whomever may respond. I suppose I’m doomed, but scoring a 1450 on the SAT, and being #18 (out of 800) in a highly-competitive institution… I’m willing to learn whatever it takes to make it… but book-smarts =! street-smarts.
Thank you again!
Matt Gentry (^_^)