Real Estate Investing to pay off student Loan Debt

Orlando, FL · Member since 2017 · 7 posts · 4 votes

Hello,

I am a middle school teacher and have always been interested in real estate. I have almost $100K in student loan debt. I WILL NOT be paying off student loans all my life! I have a plan to flip houses during my summers off to aid in paying off my student loans faster. Once 75% of my student loans are paid off, I want to build a Triplex and live in one with my family and rent the other two units out. I will do this under a FHA loan.

My question, WHERE do I start as far as getting financing for my first house and repair cost? If I have someone invest their money with me, what portion or how much profit should I offer them to interest them? Also, should I set up an LLC? I do have $5K liquid so far and can access about $2K in mutual funds if need be.

Please share you wisdom!

1 Reply

33 views

Most Popular Reply

Kyle MccawBusiness Member

Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes

Start networking at local investor clubs. Your cash may not qualify you to borrow from a hard money or traditional lender so you will need a partner or private lender. Either way you need to find the deals. You may want to research wholesaling. This is how I got started. My first five deals I found through postcards. My buyer had lots of money but not the time or knowledge to rehab. So our agreement was I found the house. He provided 100% of the purchase and rehab expenses. He got an appraisal when he did a cash out refi. Our agreement was I got paid 1/2 of the difference between total cost and appraised value. We both did well with this arrangement.

McCaw Property Management4.4911 Reviews

Website View Page

2 Reply

See this reply in the discussion

7 Replies

Jump to latestLatest

Sort by

Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
9y
Start networking at local investor clubs. Your cash may not qualify you to borrow from a hard money or traditional lender so you will need a partner or private lender. Either way you need to find the deals. You may want to research wholesaling. This is how I got started. My first five deals I found through postcards. My buyer had lots of money but not the time or knowledge to rehab. So our agreement was I found the house. He provided 100% of the purchase and rehab expenses. He got an appraisal when he did a cash out refi. Our agreement was I got paid 1/2 of the difference between total cost and appraised value. We both did well with this arrangement.
McCaw Property Management4.4911 Reviews
Website View Page
2 Reply
Shawn McenteerBusiness Member
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
9y
I agree with Kyle Mccaw in addition I suggest you speak with lender to see where you stand for purchasing a MFR first. You may qualify for low money down loan so you don't have to build capital to purchase triplex. Right now I live in MFR and the money I save from tenants paying the rent allows me to save for future investments.
973-975-3895
House Hacking New Jersey563 Reviews
Website View Page
1 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Flipping homes for profit may sound attractive but in many cases novice flippers fail miserably. What you are doing is gambling with your future. You will not likely find a quick or easy route to pay off your debts.
Failure will likely bankrupt you. Your best option is to change your life style, live frugally and put every penny into paying off your debt. Once you accomplish that you can then gamble on investing.
You eliminate bad debt then invest, you do not invest to eliminate debt.
0 Reply
Chasity Jones
OP
Orlando, FL · Member since 2017 · 7 posts · 4 votes
9y
My debt to income is keeping me from a low money down loan. I live very frugal now and pay as much as I can every month. But I refuse to pay all my money to loans and not save anything.
0 Reply
Chasity Jones
OP
Orlando, FL · Member since 2017 · 7 posts · 4 votes
9y
@klyemccaw That was a great entry you had into real estate! Thank you for the ideas. I will do my research
0 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Paying off your bad debt is saving money. You need to dig deeper into researching finances.
Begin by living more frugally and paying down even more. Get a second income, etc.
2 Reply
Chasity Jones
OP
Orlando, FL · Member since 2017 · 7 posts · 4 votes
9y
@Greg, I agree 100%. Paying off debt is saving money. I have a strict budget, no cable, no new car, and I have a side job as a credit repair specialist and make an extra $500 a month. I follow Dave Ramsey so I have started my debt snowball. I will work Summer School this year as well. But as an extra summer job, I am looking to flip a home without going into long-term debt. I am a single parent so a job outside of normal school hours during the year is virtually impossible. That is why I do credit repair as an at home business.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.