the best approach for newbie?

Question

what is the best approach for a newbie sub to, lease option or the traditional home or apartment borrowing? I received good tip in paying down my debt and I am doing that as we speak. I have 17,000 cash available not a lot depends on the situation. I live in New York City and it is really expensive in the city by the way.....

THanks to all the people on this site .

By the way, has anyone read MikeOH book on Cash Flow apartment(not the title ) but is it for newbie's likemyself? thanks.

To al newbies welcome.

THanks to all the people on this site .

By the way, has anyone read MikeOH book on Cash Flow apartment(not the title ) but is it for newbie's likemyself? thanks.

To al newbies welcome.

Jeff Fairchild · Answer

I thought I heard someone on here having some good success in another part of new york.  If you don't want to move too far away, maybe try a different city, i forget which city it was, buffalo or something like that.

Tom McGiveron · Answer

i'm all for people reaching their goals.

and yes, 17k is a good amount of money...and i'd hate to see someone attempt to buy property in or near NYC, with only 17k in the bank and watch it all go right out the window.

to me, you've got to move where the market is improving and where it is affordable.

surely NYC and long island is not the ideal place to START.

now if your 17k was 170k - then we're talking.

i live here.  i know what the deal is.

if you're comfortable with leveraging your investment, then i say go for it...no matter where you live.  certainly buying a property to live in and then moving from place to place is a solid way to build your real estate portfolio, but it takes time and discipline...if you're in a relationship with someone - that person has to be on board with what you're doing.

i just recently met a couple, looking at homes in the 900k to 1.3million range.  they move every 2 1/2 years.  they're married, have grown children and make real estate investing a part of their lives...by buying low and selling high.  they live in it, fix it up and move.  no cap gains and they increase what they can buy each time.    these two have an understanding.  find a life partner (wife/husband) that will be okay with this and you're half way there.  then you've got to hold it together, don't spend too much, stick to a game plan and BAM - i think this is a GREAT way to go about investing in real estate...

i didn't mean to sound too harsh, but sometimes you've got to drive home a point - GAURD your hard-earned money.  invest wisely.

call me for your realtor needs... :D

N/A N/A · Answer

Cash Flow Quadrant" by Robert Kyosaki.yes thanks i will read that order also.

thanks royal t andnoodog

N/A N/A · Answer

wow it was funny and real straight foward advice. I really appreciate it. also, i will order the MikeOh book for good measure.

Paul Cordero · Answer

Wow, pretty harsh advise from noobdog1.  I think you are on the right track to getting started with your $17K.

If I was in the situation you are in, I would continue doing your due dillegence.  Read a couple of books on REI, and get ahold of "Cash Flow Quadrant" by Robert Kyosaki.  Buy your home as an investment.  You can qualify for 100% financing once you reach a 575 FICO and can provide income to justify the payments.

Once you have done that, and have your credit where it needs to be, try purchasing another house in your area as your new residence.  Get Hard Money, or if you have good credit, get conventional financing.  Make your 1st purchase a cash flowing rental, then move to your new home.   Build some more capital then buy another investment.  It will take some time, but this is how I am starting out.

I don't think you need to move away from NYC to do well, and I think "a dollar crumpled up on the floor in a crack house" is just that, and not $17gs,  there is a big difference. With the right ambition, you can achieve your goals.

Just my 2cents.

Tom McGiveron · Answer

with 17k cash - move out of NYC.

out mid west.  follow the markets - maybe down south east. or texas.

you're wasting your time in NYC or NY, long islandish -

unless you're a "webuyuglyhouses" guy - or you've got CASH or a CLOSE CONTACT who does - you're really behind the eight ball.

i mean you can join a rei club and "network" - but even there, that takes time, you've got to learn the MARKET, bs with people.

if you move, 17k will go a longer  way and you'll find "creative financing" is more welcomed.

17k in NYC is like a dollar crumpled up on the floor in a crack house.   :D

try competing with investors who pay CASH, real CASH and put in your "no money down" lease option blah blah blah - and you'll be laughed at right out the door...