I have $30,000 cash. Ive never bought a house. Please help me.

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I have $30,000 cash. Ive never bought a house. Please help me.

Priceton Braswell
Hudson, NC · Member since 2016 · 17 posts · 5 votes

Im 23 and I just got a settlement from an auto accident. The insurance company wouldnt cover the medical bills so my credit is 316 but I have 30k cash. My rent is 550 a month. Id like to invest in a property and rent it to cover my rent. Im very open and new to this. The houses ive looked at online in that price range are all REO foreclosed. I havent talked to an agent yet im just starting the process.

Would foreclosed be the best route to take for my situation?

How do i know what to offer or what the house is worth. Is it crazy to offer 30k on a house listed at 40k or 50k. 

Would it be possible to put 30k down and finance like 5k or 10k with my credit?

Ive done construction for years so new floors drywall trim and paint isnt an issue but how can i get an idea of the ARV and what are some major issues I should check for before purchasing other than cosmetics . Any links, or answers will be greatly appreciated. 

I want to use this website for guidance through the entire process. Im very nervous because ive never had this much money and i dont want to screw it up.

Thank you for any help

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Percy N.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
9y
Priceton Braswell , 5-10k is too little for a lender. You may want to ask friends and family to someone at your local REIA. If you offered a first position lien on a decent property, I am sure someone might bite.
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  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    9y
    Priceton Braswell , 5-10k is too little for a lender. You may want to ask friends and family to someone at your local REIA. If you offered a first position lien on a decent property, I am sure someone might bite.
    1Reply
  • Ken Letourneau
    Wholesaler · bellflower, CA · Member since 2012 · 23 posts · 3 votes
    9y

    question you need to ask to yourself how much are the houses selling in your area and how is the real estate market in your area first.   start watching you tube video on real estate investing   this is free      . ken letourneau 

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  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    9y

    You just received a $30K settlement from the auto accident. Use that settlement money to pay your medical bills. Build your credit worthiness. If you intend to get serious about investing, you need to have your finances in order and enough in reserve to pay for things that come up in your personal life as well as the unexpected costs of doing business. Plan not only for the purchase of a property, but also for the holding costs.... taxes, insurance, utilities, maintenance/repair. There are also the business costs.... licensing, professional services (legal,tax,etc.), office, transportation. For now, get yourself back on sound footing and spend more time learning about real estate investing... on BP and elsewhere... before jumping in. Listen to Podcasts and read recommended books. Good luck!

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    9y

    @Priceton Braswell with a credit score that low it would be impossible for you to get a traditional mortgage.  Even the loans that are out there that ignore all sorts of credit issues have a minimum score requirement of 500.  In my expert opinion though, I would guess that your credit score is not that low.  It would take a bank to verify but I'm guessing you got that score from one of those free credit score websites.  Friends and family might be your best route if you need to borrower additional money to purchase.  It could be a little difficult to offer 40% lower then someone's asking price on a home.  It would just depend on your market but a realtor in your area might be able to answer this best. If you were to get expert financial advice I think a financial guru would tell you to keep 3-6 months of your bills saved up for "just-in-case-something-goes-wrong" money.  And he/she would probably tell you to work on paying your debts.  This may not be what you want to hear but I think it might be the best route for you to take.

    1Reply
  • Priceton Braswell
    OP
    Hudson, NC · Member since 2016 · 17 posts · 5 votes
    9y

    Thanks guys! Just out of curiosity how long do medical bills stay on a credit report? I love the idea of paying mine off and getting my credit score back up but its a little over 1.2 million in bills and it just seems like to much if their going to be cleared by the time I pay it off anyways. Also i notice people on here needing hard money loans. Are their any major risks in that. Dont I get the property if the investor cant pay it back and if so are their any other complications. I know im sounding like a  try to get rich quick kinda person and thats not how it works but im afraid i might blow the money if i dont invest it in something. 

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  • Jamal L.
    Investor · Baltimore, MD · Member since 2014 · 398 posts · 156 votes
    9y

    @Priceton Braswell

    Congrats on the settlement. One strategy would be to find a owner thats willing to do owner financing deal.  In such an transaction you would make a lump sum down payment and make monthly payment afterwards until the remanding balance is paid completely off.  For example say you found an Owner on Craigslist that was selling a home and convinced him/her that Owner Financing would be a benefit to them. As they could collect a lump sum and 2-3 years of residual payments.  Say they wanted 45k for the Property. You could propose to put around $20k down and pay about $700 per month for the next 3 years then either live in it or rent it out for $950 per month. Thats a way that you could work to your benefit in investing your money wisely with out using credit.   This way you still have a little cushion for unexpected fees and you are making profit as the tenant pays down your mortgage. Just a thought 

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