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Updated almost 8 years ago, 02/11/2017
NEED some help! Please. All advice welcomed.
Hi my name is Anthony. Thanks for taking the time to read this. I'm very new to real estate and was hoping I can get some advice. A little background on me to understand my situation. I'm going to put my questions in caps so its easy to see them (I'm not yelling at you, I swear. Lol) So about 2 months ago, after being at my job I decided I was tired of working my own hours. I sell cars for a living. I wanted something to become financially free, stumbled upon bigger pockets and have been reading a whole bunch on real eatate. I read the secrets of the millionaire mind, followed some of the steps, ended up saying I was a money magnet, came across a nickel, said I was a money magnet, customer gave me 120 dollars, said it again and my monther in law is gifting us 40k to buy a house. No joke! Within like 2 weeks this happened. So I'm getting into realestate alot sooner than I expected. So my situation, Have 40k to purchase house. Live In tracy, CA. Work in fremont ca. Looking for duplex to do the BRRR strategy. Credit is at around 600. In lease till June at current apartment. I will live in the house for a year or so. SHOULD I GET FINANCING DONE FIRST? FHA OR CONVENTIONAL? BUY FROM A WHOLESALER OR AGENT? ANY OTHER PLACES TO LOOK BESIDES THE MLS? BUY FROM AN ESTATE SALE BE SMART? Because I work commission and have only been at my job for 8 months, the banks look only at my 15/hr.So it's not alot I would qualify for. IS A SINGLE FAMILY A BETTER OPTION TO DO A BRRR ON? WHAT ANALYSIS SHOULD I BE LOOKING INTO? for e.g how do I know it's a good deal or meets the 70% rule. sorry for the long post. Too many questions.
As this is your first deal, you'll want to test the lending waters first. You're likely to find that the score is not as important as the content of your credit report: why is your score so low? What's your current revolving credit utilization? ... debt-to-income ratio? Determine your financial position first; then, work within those constraints.
Buy from a seller, never mind whether or not they're represented by an agent. Remember that a wholesaler wants to assign their position in the contract to you for a fee.
Yes - there are other places to beyond the MLS. There's probably podcasts, blog posts and other articles about how to find deals which are not yet listed.
With your work situation, I'd be looking into learning how to attract and engage private lenders. You're right - banks, etc. will look sideways at you.
Learning to analyze properties is a topic unto itself.
Thanks for the response man. Any recommendations on podcast? Also is it possible that when I'm ready to refinance I wouldn't be able to pull the cash outo let's say if I didn't get a good deal now?
Welcome Anthony. I think you should not do deal by your self I could see so many ways you could go wrong.
1. You will not get traditional mortgage easily. Because dti and score
2. You are too new to go in to hard money.
3. You are looking around 300 to 400 k to buy a house that will be tricky. Given you are in bay area . I don't know about Tracy you can buy in area like Richmond. But might be too much risk.
here is my advice there are local meet up go there talk to people. Get a tap in to market where you want to invest. At the same time build some more cash . If I would you I would do first deal with partner ship with a known person. Than think about doing my self.
Originally posted by @Anthony Santistevan:
Hi my name is Anthony. Thanks for taking the time to read this. I'm very new to real estate and was hoping I can get some advice. A little background on me to understand my situation. I'm going to put my questions in caps so its easy to see them (I'm not yelling at you, I swear. Lol) So about 2 months ago, after being at my job I decided I was tired of working my own hours. I sell cars for a living. I wanted something to become financially free, stumbled upon bigger pockets and have been reading a whole bunch on real eatate. I read the secrets of the millionaire mind, followed some of the steps, ended up saying I was a money magnet, came across a nickel, said I was a money magnet, customer gave me 120 dollars, said it again and my monther in law is gifting us 40k to buy a house. No joke! Within like 2 weeks this happened. So I'm getting into realestate alot sooner than I expected. So my situation, Have 40k to purchase house. Live In tracy, CA. Work in fremont ca. Looking for duplex to do the BRRR strategy. Credit is at around 600. In lease till June at current apartment. I will live in the house for a year or so. SHOULD I GET FINANCING DONE FIRST? FHA OR CONVENTIONAL? BUY FROM A WHOLESALER OR AGENT? ANY OTHER PLACES TO LOOK BESIDES THE MLS? BUY FROM AN ESTATE SALE BE SMART? Because I work commission and have only been at my job for 8 months, the banks look only at my 15/hr.So it's not alot I would qualify for. IS A SINGLE FAMILY A BETTER OPTION TO DO A BRRR ON? WHAT ANALYSIS SHOULD I BE LOOKING INTO? for e.g how do I know it's a good deal or meets the 70% rule. sorry for the long post. Too many questions.
also I am live in Fremont pm.me if you need some help