How do I start with no money?

Question

Hello everybody, my name is Jossy and I am very determined to own property. I work full-time as a server/food runner, and I am pursuing my Mathematics bachelor's degree at NJIT. I only have 1,567.32$ saved right now and 300$ worth of debt. My semester is around the corner, and I'll have less time on my hands, but I want to own a home within the next year. My question is, should I save 124$ a month for 10 years to buy my first property, or should I look for ways to obtain my first property sooner ? I am eager, but I don't want to buy a bad home, because of my ambition. Thank you.

Randall Alan · Answer

@Jossy Mundo

I think your timing is off.  You have chosen a time frame that is inconsistent with both your situation (no time / no money) as well as the market (high interest rates / high real estate prices).  I don’t see how you do it… or why you should do it now.   Your ten tear time frame is based on your current situation, which should hopefully drastically change when you graduate… you will hopefully significantly increase your income, and hopefully rates will settle down by then.

You will need 3-5% down to buy your house.  That’s $6,000-10,000 for a $200,000 house plus closing costs.

If you buy now, you will have a very high payment with a high interest rate.  You can always refinance that later, but then you will be spending $3,000 to $5000 more to get out of a higher rate loan.

It’s better just to stay put for the moment, save your money, and wait for all those situation‘s to improve.

All the best!

Randy

Jossy Mundo · Answer

Thank you guys, I appreciate your advice. I will keep educating myself, and continue saving money until I make my situation better.

Josh Young · Answer

@Jossy Mundo you will need to borrow money from a lender to buy a home and they will want to see your income on your tax returns to qualify.  My advice is to finish school, keep saving money, don't take on any extra debt and when you start making more money as a w-2 employee after college don't change your spending habits, just keep saving. You will also need to learn how to qualify for a mortgage, so talk to lender and they will help you create a plan. Here is what I did, this might help you: https://www.biggerpockets.com/...

Brian Perlman · Answer

Hi Jossy. I have to give you credit. When I was in college the last thing I was thinking about was getting into real estate or even purchasing a home, whether for investing or living there. We all know the saying "carpe diem", and you only live once, so I say go with your gut and take the chance. These days, we are all in some sort of debt and I believe two types of "good" dept are those in education and home ownership - both will be paid off in the long term and you will benefit from both! Don't think about the "what if", and just remember you can always start over. I did. I worked in Corporate America for around 25 years and decided one day to try something new - Real Estate, and I have not looked back. Yes, there were times of struggle, but you just have to keep your head up high and know that you will succeed no matter what. And if all that fails, and again you and you only you can determine that, then you try something else. The fact that you are on the track to complete your degree can only help you in the future!

Good Luck!

Chris Seveney · Answer

@Jossy Mundo

You need to save a lot more funny and figure out a job that pays well and even consider a side hustle. Don’t waste time meeting people for coffee, work your tail off and save as much money as possible - buy a primary residence and then continue to save.

Jossy Mundo · Answer

Thank you Josh, I like your advice. I'll keep saving, I'll keep educating myself and not take on any extra debt.

Account Closed · Answer

Mathematics is all about the numbers and that's what real estate is as well, all about the numbers. If you are serious about real estate and good at math, you draw a vertical line on a piece of paper and do the numbers. Math degree on the left, real estate on the right. By the way, I'm not sure getting a BA in Math will get you anywhere. You probably need at least a Master's.

How much is your mathematics degree going to cost you? Tuition, living costs, books and lost time (lost opportunity of making money) etc. How much can you make doing real estate? By applying yourself, you can earn $50,000 to $100,000 or a lot more yearly, with the right knowledge provided by a someone from your loca REIA.

Once you make some money in real estate, you take your math classes and it's a whole lot more fun.

Getting a mathematics degree first is just an excuse to avoid making a living. That choice is up to you.

Jossy Mundo · Answer

Thank you, although I only have 2000$ saved for a down payment, I will continue to save, read, and ask investors for their advice on how I can start.

Jossy Mundo · Answer

Thank you Chris I will keep on working hard, and continue to work smarter as well.

Jossy Mundo · Answer

I am educating myself, reading real estate investing books by biggerpockets and also working 48 hours a week before school starts. I don't appreciate your comments so please take your business elsewhere. Thanks.

How do I start with no money?

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