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Updated 4 months ago, 09/03/2024
Guidence on starting out on Real Estate
Hey guys, I live in Phx,Az , single no debt what so ever, in car sales business (self employed)and monthly I make anywhere from $3k to $10k after everything, experian score is 640, im guessing with that fair score and no proof of income Im looking at a crappy interest rate and big down payment on at least -$300k, here in Az anything lower than that its because it needs re habing and to be honest i dont have no experience whatso ever in that field and dont want to end up in a money pit.
Hey Jimmy im an investor and agent in Phoenix. Without proof of income youll have to go with a subto or seller financing deal. We have a bunch of them, turnkey in our inventory. Feel free to reach out
Sent you a message!
Hey Jimmy, feel free to reach out there's a few different avenues you can take. Like @Jeremy Holden said above, sub2 could be a good option for you, he's a great resource to lean on in this market as well.
Hey Jimmy, congrats on starting out on your investment journey! What do you mean by not having proof of income? Do you mean no proof of a W-2? If you are self-employed, there are specific loan programs designed for self-employed persons as opposed to conventional W-2 financing.
@Jimmy Rojas I always recommend trying to start out locally so you can get a feel for how real estate investing truly works. If possible I'd try a house hack at first, if that's not feasible then I'd look at out of state investing. There are companies that allow you to invest extremely passively in areas that are very affordable. Those kind of companies handle purchasing the home, renovating it then selling it to you and even property managing for you on the back end. In the southern/middle part of the country you can get into a great area for under 300k. Feel free to reach out with any questions you might have. Best of luck on the journey!
- Taz Zettergren
- Real Estate Broker
- Cody, WY
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In today's market, your best bet would be a house hack. Scott Trench discusses this option in his book, Set For Life. Here's some generic beginner advice.
1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.
2. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, Facebook, or a Google search. Birds of a feather flock together!
5. Now, you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum. A handy search bar in the upper right makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, recognizing a good deal will be much easier when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
6. Study the market. You can learn to do this independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.
7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still need to learn more because certain things must be learned through trial and error. You don't need to know everything to get started; you need a foundation to build on, and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is forgiving; the average person can still make money even with some big mistakes.
- Nathan Gesner
Don't buy your first property sub to or seller finance...there are enough question marks on your first deal. You don't need to add risk factors.
How do you have no proof of income? Have you been in this job for 2+ years? What do your tax returns show?
I would suggest getting past the story that you are telling yourself. We all do it, but get out of your internal dialogue and talk with a lender or three to see what they have to say about your options.
Quote from @Jana Crum:
Hey Jimmy, congrats on starting out on your investment journey! What do you mean by not having proof of income? Do you mean no proof of a W-2? If you are self-employed, there are specific loan programs designed for self-employed persons as opposed to conventional W-2 financing.
Quote from @Travis Timmons:
Don't buy your first property sub to or seller finance...there are enough question marks on your first deal. You don't need to add risk factors.
How do you have no proof of income? Have you been in this job for 2+ years? What do your tax returns show?
I would suggest getting past the story that you are telling yourself. We all do it, but get out of your internal dialogue and talk with a lender or three to see what they have to say about your options.
Hi, I am self employed, I buy used vehicles at dealer auctions and leave them at a local used car dealer lot on consignment, when it sells after commission and some fees i receive my check.
As long as you file taxes and report income, being self employed should not be an obstacle.