New investor in southeast Missouri

[David Morad]

I have been learning as much as I can while living and working full time at a camp in southeast Missouri. I am about to leave the camp, and move to Cape Girardeau. Looking to meet other investors to be able to meet and ask questions.

Also, any tips on jobs to look for for someone who loves learning and working with real estate? I have the awesome opportunity for a fresh start in a new place, and want to set myself up for success in REI, especially starting off at the age of 21.

[Sean Ybarra]

hey all, feel free to use me as a resource. When you’re starting out, especially in your early twenties you’re going to have a few issues so be prepared, I’ll try to answer as much as I can here so this may be a long post.

The first issues that come to mind is lack of capital. Real estate is expensive to buy and maintain. At the very least you will need a down payment.

If you’re starting out and not rich, have rich parents, or access to large amounts of capital your choices are limited.

Next is credit history, you’ll need to build strong credit cause you’ll most likely need funding, there are first time buyer loans available but they’re only if you plan to live in the house and not for investment properties and it has to be under 5 units, and will need to pass a litany of inspections and meet stringent criteria which means you’ll pay full price for it.

In addition to the capital to put a down payment, you’ll also need reserves in the bank, I think it’s around 3-6 months of mortgage payments.

You’ll also need to prove a strong work history and regular paychecks, if you haven’t been at your job long or have little/no credit history you may find it hard to get approved.

Don’t forget you’ll need to prove you make enough to make mortgage payments.

With all that being said, here's what I always recommend. Depending where you live homes may be under 100k, which means you can use an FHA loan to put only 3.5% down which is only 3.5k (not a big amount) rent may only be a few 100.

Fha loans allow you to get a residential property with up to 4 units for 3.5 down and the loan is designed for first time buyers or people that can’t afford a 20% down payment. You have to also live in the home for at least 1 year. If you can get 4 units the property can pay for itself and maybe put some $$ in your pocket.

Love there for the year, now that you built up equity you can refinance and pull that money out and invest in another property. Move out of your first property and rent out the unit you were in.

This is all very basic but feel free to connect with me, or ask f you got any other questions