Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
Hello I am a recent bigger pockets fan. I am an immigrant. I have been blessed to be in America for 2 years and a few months now. I hit the ground crawling as fast as I could, working 2 jobs, living below my means, reading and learning dividend investing. Then I found bigger pockets and poof !explosion! Mind blown! I've saved $32 000 over these 2 years . Should I wait for the market to turn ? Save more ? I live in New York. Not an easy market for a newbie
Welcome. I just posted this adhoc-hip-pocket list to another new investor.
1) Deep dive into Bigger Pockets.
2) Avoid Gurus; religiously
3) Don't make other peoples mistakes ( you will go broke)
4) Always buy under market value
5) Add value, significantly!
6) Never over leverage
7) Don't burn bridges
8) learn to love excel and proforma analysis ( if not give it up today)
9) stay local ( for now)
10) see number 1
The question about if to invest or wait is very common here. There is always risk on this field of REI it's a personal call you will have to make. For me I'm blazing both guns at a risk level comfortable for me. (Tip: see number 4.)
Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
6y
@Marcello Di Gerlando thank you. I was thinking to try investing out of state. I bought David Green's book. I havent gotten to it yet. Still reading Brandon Turner's
Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 607 votes
6y
@Shemroy Mccarthy Wow! Hempstead, NY. . .I grew up in Hempstead. Fond memories. I'm sure it has changed in more ways than I can imagine. I haven't been back there in decades. You've got me thinking I should visit the old neighborhood.
Attorney · New York, NY · Member since 2019 · 72 posts · 27 votes
6y
New York is a tough place to live and invest in. With 32,000 saved you can possibly apply for a loan and obtain a multifamily or a single unit. Good luck and use every resource you can
Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
6y
@Jade Bloomfield I used a secured card from BOA then get their cash rewards card then their travel rewards card. I got an old navy card too. I just wanted a variety of cards and I assigned them their specific Bills to pay. Then I pay them off weekly sometimes before the bill is even registered lol.
Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
6y
@Michael Carbonare I actually have family in Florida. Davie specifically and I have been looking there to buy my first property too. Do you invest in fort lauderdale? Is it wise to get into a condo or town house down there?
@Michael Carbonare I actually have family in Florida. Davie specifically and I have been looking there to buy my first property too. Do you invest in fort lauderdale? Is it wise to get into a condo or town house down there?
South FL is not inexpensive. Davie can be very high end in some locations, and Fort Lauderdale even more so. Is it wise to buy something down here? It can be if you find a bargain, Shem, but the competition for those crumbs is intense. I do my investing out of state, in markets that are more affordable and more investor friendly.
Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
6y
@Michael Carbonare. That is so awesome that you invest out of state! I did the free steps, got prequalified and enlisted a real estate agent I hope I can trust. I found some houses that weren't great deals but were at least not bad. I put in 2 bids so far and no dice. The deals get snapped up fast. So I'm no longer hoping for a deal. My wife starts nova southeastern university in september. I will have to pay rent for 3 years. That's around 36 to 40 grand in just rent. I was thinking to use that as a downpayment and just pay a similar amount in mortgage as the rent would have been. She could also house hack. Think that's a good idea?
Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 607 votes
6y
@Shemroy Mccarthy What @Account Closed said. Prices in Davie-Plantation-Fort Lauderdale don't add up as far as single family house rentals. You said you are working with an agent and you put in a couple of offers. Where? In FL or in NY? Yes, 3 years rent will easily run you $1K/mo, and that's being conservative. As for investing, don't be intimidated by out of state deals. We live in the information age; with some know how and mouse clicks you can determine ownership, property values, liens, etc.
Rental Property Investor · Hempstead, NY · Member since 2020 · 28 posts · 11 votes
6y
@Michael Carbonare I put in the offer in and around Davie near the university. Do you think house hacking can work? I dont need to profit much. Just not wasting the 36000 in rent is great for me. I was thinking buy a 150 000 or less condo. That's around 1200 in monthly expenses. Then After the 3 years I could leave it to my mom who has no place of her own and could take over that mortgage with some help.
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Shemroy Mccarthy - you shouldn't wait for the market to turn because you and no else knows that it ever will. You could be waiting 10-15 years! Does it "feel" like we are at the top... it kind of does. Do you remember why housing prices cut in half in 2008?
It was because lots of very intelligent people thought real estate was an asset class that always went up. That's why banks were lending at 125% LTV, doing NINJA loans, etc. Banks are not getting as aggressive and there are regulations in place to ensure that doesn't happen again.
I suspect over the course of the long term, real estate will continue to increase year over year at a modest rate as it did for the 80 years prior to 2008. Either way, you NEED to make sure you have a plan if:
1. The market increases
2. The market drops
3. The market stays the same
If you have a plan for all of these scenarios, it's going to be very unlikely you lose significant money in any scenario. The savvy 2008 investors who understood this philosophy got very wealthy from the collapse.
So.... you can use the market as an excuse to sit on the sideline OR you can take action, start investing, and start building massive amounts of wealth. I'll leave that decision to you :).