Beginner Investor Assistance

[Jessica Jackson]

Greetings All!

I’m very interested in real estate investment and property management. I recently started a business and although cash Is flowing in, I’ve yet to add myself into payroll. Will this pose an issue, as I am interested in leveraging money from the bank to purchase my first house/building? I don’t have much money saved, so going in with 20k down isn’t currently feasible but I want to start ASAP. Maybe, I’ll have to live in the property for the first couple of years or so, or rent to family... I have to brush up on real estate laws... I know, but I was hoping that one or many of your experienced, bright-minded individuals could shed some light. 

I’m willing to buy foreclosures, fixer uppers, new construction, etc. My ultimate goal is to start a property mgmt company, managing props of my own and others. Please assist!

Thank you!! 

[Natalie Schanne]

@Jessica Jackson After you have income (either from a w2 job or 2-3 years of self employment income), then banks, especially local ones, may be willing to offer you small business loans or grants. These programs can help you finance buying buildings like a mixed use building with office space on the first floor (for your business) and apartments above (other income).

It’s important to think about the value of your time and to “pay yourself.” I have done many small business ventures where if I was paying myself properly I would have realized sooner it wasn’t worth the time and I could have made much more doing other things.