Strategy for low income earners?

Question

Hello, I would like to know the best strategy for someone who earns $23/hr in Illinois. Thank You!

Nicholas L. · Answer

save up enough to house hack, then house hack.

Stephen Montez · Answer

Read David Greene's Pillars Of Wealth! Great information on how to establish yourself in your lower-income earning years and move higher and higher every time!

Alecia Loveless · Answer

@Jason Carter I owned two B&Bs for years which provided a nice lifestyle and loads of skills none of which were transferable to a real life job situation. Eventually my partner and my own health insurance cost rose to over $1400 a month which just wasn’t sustainable so I got a job in a group home on third shift. In 15 years I’ve held that job between two companies I’ve never made over $21/hour but have in the past four years since I started investing in real estate managed to buy 7 properties with 25 doors. The cheapest was $99,000 and the most expensive was $460,000. With focus, creativity, and determination you can accomplish anything you set your mind to achieve even on a limited budget.

Set goals, CONSTANTLY search for deals, and network telling as many people as possible that you buy house, multis, self storage or whatever and you will be amazed at what comes of it. If your schedule allows volunteer for town boards or run for election and get where you can gain insight on the inner happenings of your city. I’m heading into my 16th year on my towns planning board and I know each business that is coming, every subdivision and therefore know where might be a good idea to invest. I live in a village I can only imagine this would work 100X in a larger city. And it’s usually not expensive to volunteer for a board or in many communities to run for an elected position.

Paul De Luca · Answer

1) Build your team - talk to investor-friendly lenders and agents that are experienced working with real estate investors. Discuss with your lender your financing options, particularly low downpayment options. House hacking is likely the best strategy for you.

2) Once you know the financing requirements and what your budget is, define your buying criteria and strategy. Budget, location, property type, beds/baths, amenities, etc all need to be confirmed.

3) Save your money

4) Analyze deals with your agent

5) Schedule showings for the properties that appear to have potential

6) Make offers

7) Close on the right investment property

Good luck!

Zack Karp · Answer

@Jason Carter there is plenty of opportunity! I'd be happy to set up a call to discuss your lending options and numbers. Even if you're still in the thinking about it/planning stage, it will be helpful to get a very realistic idea of where you stand and what your options are. Feel free to reach out whenever you're ready.

Wale Lawal · Answer

@Jason Carter

Certainly! Your earning potential of $23/hr in Illinois can still provide opportunities for real estate investing. Here are a few strategies you might consider:House hacking is the practice of residing in one unit of a multi-unit building while renting out the others in order to pay off your mortgage or bring in extra cash. You may start with a duplex or triplex where you can live in one property and rent out the others, depending on your income level. With this approach, you may maintain a small income while accumulating equity and offsetting housing expenditures.Investing in rental properties: In reasonably priced locations, you may purchase economical single-family homes or modest multi-unit buildings. Seek out real estate with a positive cash flow after upkeep, insurance, taxes, and mortgage payments. Rental properties have the potential to produce passive income over time with prudent planning and management.Syndications or Partnerships: To pool resources and participate in larger buildings or projects, think about joining real estate syndications or forming partnerships with other investors. By doing this, you may share the risks and obligations with others and have access to assets with the potential for larger revenue.Real Estate Crowdfunding: Real estate crowdfunding platforms allow individuals to invest in real estate projects with lower capital requirements. You can invest in a variety of properties or projects with smaller amounts of money, providing diversification and potential returns.Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-producing real estate. Investing in REITs through stocks or mutual funds provides exposure to real estate with lower capital requirements and less hands-on involvement compared to direct property ownership.Continuous Learning and Skill Development: Invest in your education and develop skills in real estate investing, property management, finance, and negotiation. Continuously learning and improving your knowledge will help you make informed investment decisions and maximize returns over time.Always remember to do your homework, evaluate investment ideas thoroughly, and consult with financial advisors or seasoned investors for advice. Real estate investment involves perseverance, hard work, and careful preparation, but with the appropriate approach and frame of mind, you may gradually accumulate money and reach your financial objectives.

Tanner Lewis · Answer

It depends on what your starting reserves are, but if you have enough for a down payment, I would look into DSCR loans for financing, as you can qualify based on the property's cash flow as opposed to your own personal income.

Strategy for low income earners?

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