Should I Start Investing Now Or Later?

Question

Hi Everyone,

My husband and I wanted to start  investing either in house flipping, or buy and hold. We have over 30K in our saving, but the problem is that he lost his job a few months ago. He was a financial analyst at an oil and gas company. I do have a real estate license, because we were planning  to make an income from both our investment properties and my commission when we buy properties on MLS.

I noticed that private money lenders or hard money lender may be able to loan money to people with no income, but still may look at whether the borrowers have few months reserved in their bank account.

Should we wait until my husband get a full time job again, or should we just go for it?

I would greatly appreciate any input on how we can figured out what to do in this situation.

Thank you,

Niki

John Thedford · Answer

If you can get money at rates that work, invest. One of the most successful investors I know, owning over 600 SFR, states there is NEVER A BAD TIME TO BUY, ONLY TO SELL. He owns millions in RE and has been buying in good times and bad. If you invest, remember the #1 rule: you make your money when you buy. It makes no sense to pay market value and HOPE for appreciation. Buy and hold is a great way to build sustainable income.

A HML SHOULD look at ability to repay using the 3 C's
1. collateral value
2. Capacity to repay
3. character of the borrower (do they pay their bills)

A HML SHOULD look at ability to repay using the 3 C's1. collateral value2. Capacity to repay3. character of the borrower (do they pay their bills)

Anthony Susco · Answer

@Niki Jacobs I would start now!  Even if you don't start investing right away, you should start networking with potential partners, lenders, contractors, etc.  It's never too early to start your due diligence and relationship building.  Good luck - BP is a great resource!

Niki Jacobs · Answer

@David Dachtera,

I do believe that too. I am still learning as much as I can. Thanks.

Niki Jacobs · Answer

@John Thedford, thanks for giving me the insight on HML.

David Dachtera · Answer

@Niki Jacobs,

I'm sort of the contrarian here. I agree that you should invest now - procrastination rarely has a positive outcome.

However, I believe that the business should stand on it's own, without your money / credit. That's a greater challenge, certainly, and it takes a lot of legwork, negotiating, networking and education to make it work. I know 400+ people who do it every day right here in my own investing group.

Risk? You need get comfortable with it. Little or no progress is made without it. Managing and mitigating risk is far more profitable than attempting to avoid it.

My $0.02 ...

Kevin Wang · Answer

Save and and then invest when you know you’re not at risk losing something or being in debt thats difficult to get out of. Have enough savings to cushion any surprises.

Often times the unexpected can come up and suddenly you don’t have enough to make that extra payment. Plus you’ll get better mortgage terms due to a stable income. You’ll also have more opportunity because you saved a lot more money. I'm sure your husband can find another job and you'll be able to start investing again.

Should I Start Investing Now Or Later?

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