Looking for some start up advice.

[George V.]

My wife and I have been looking to invest in real estate for a few years now but our situation has kept us from making any purchases yet. Here's a quick synopsis of what's going on. We're both gainfully employed (90k annual income) and have about 5k in savings. The problem for us has been a bankruptcy that we filed 7 years ago (03) that has our credit rating stuck in the mid 600's. We bought our home in 08 and probably were one of the last folks to get 100% financing. The crash later that year has left us slightly upside down. Ultimately I would like to get into rentals more than flipping with the market the way its been and with our limited access to cash. I've looked into a few hard money lenders but most require a credit rating slightly higher than where we currently are. So my question to you is what would you do in our situation? We're really looking to move away from our 9-5 jobs over the next few years and would like to become full time investors.

Thanks in advance!

[Joel Owens]

You make 90k a piece or together??

FIRST STEP is to correct any mistakes with your current finances.

Order your 3 credit reports.What is on there that is negative??

Are your credit card balances high and your interest rate high??

What about car payment?? Are you driving a mack daddy vehicle with an huge car payment and insurance requirements??

Your mindset has to get out of spending mode and into investing mode.Sell your newer car and buy an older one for cash.

Live below your means and save so you can amass properties and THEN live the good life for an extended period of time.

Call the credit card payments and get the interest rates reduced.You can't get a YES unless you ask.

Call your mortgage company.Some have what is called a short sale refinance where you can get a new loan at the reduced value.If you can't do that go for a loan mod or temporary reduction to boost income and decrease expenses.

Your property tax bill if it is high contest it to go lowered.Cable,clothing allowance,cell phone,eating out nothing is off limits.

If you do this you will start turning the tide.The question is HOW BAD do you eventually want to be able to quit your 9 to 5??

Start working on these items first to increase cash flow and start decreasing bad debt.