Late Bloomer?

Question

Hey you all! Really excited to be on Bigger Pockets. I'm getting into the game late in life and wanting to make the most strategic deals to ramp up quickly. I know that kind of talk can sound dangerous, so I'm hoping the wisdom and guidance here can help make it happen!

Corby Goade · Answer

@Trio Martinez, sounds like you have an idea of how you'd like to start. My two cents would be to find a duplex near the university and live in one side and rent the other out. A duplex might be more expensive, but you have to keep in mind that the income from the other side will offset your expenses. In my area, if you are patient, it's possible to buy a duplex where one side will almost pay the entire mortgage. Imagine if you went to college for four years, and moved into another duplex each year? When you graduated, you'd already have passive income from 8 units. That's a great start.

Alexander Felice · Answer

You can get to 150k a year in income, no doubt about it. Just depends on the deals you land (how many, how profitable, how big)

Trio Martinez · Answer

@John Van UytvenThanks John, for the vote of confidence and the tips. I want to replace my income so that I can be financially free. I don't have an exact number in mind but I think I would feel pretty comfortable at or above $150,000 a year. Is that a reasonable goal that people are able to attain? I'm in my late 30's and am still hoping I can start a family. I think not being financially sound has held me back in that arena. I will read the ultimate beginner's guide.

John Van Uytven · Answer

@Trio MartinezBetter late than never.You still have time you can grow a business.What kind of business do you want to grow?What are your goals with your business?If you have not read the Ultimate Beginner's Guide, I highly recommend that.When you want to get someone's attention in a post, use the @ symbol and start to write their name. It should pop up and then click on it.After someone has written something you like give them a vote, to show you appreciate them taking their time.

Nick Patterson · Answer

HiCheck out Bio's of people who started successful businesses way older than you.#1 guy is Colonel Sanders. Just depends if you work it everyday.http://www.biography.com/people/colonel-harland-sanders-12353545

Corby Goade · Answer

Hey Trio- First of all, it's great that you have prioritized your education. I wouldn't jeopardize that, so keep on track there. There are options for you- getting your first couple loans is much easier than it will be as you get older. There are programs out there for first time home buyers- you can pay VERY little down. I'm not an expert on the Chicago market, but from what I've seen you should be able to get into your first duplex, maybe event your first couple duplexes, for just a few thousand dollars. Where it gets tough, especially if you aren't working full time, is that banks don't give you much credit for rental income, which makes your debt to income ratio look undesirable, at least in their eyes. I'd recommend a couple things- work a flexible job where you can earn tips- deliver pizzas, maybe drive an Uber, something like that where you can build up a few thousand bucks in cash for a down payment over a few months. In conjunction, start a relationship with a regional bank or credit union where they understand what your goals are. I'll bet if you connect with some other investors from Chicago on here, they will be able to recommend a few banks for you to check out. If a bank knows and trusts you, they may offer you in house products that have a little more flexibility than a conventional mortgage. It wouldn't hurt to find another local investor that you can do some grunt work for in exchange for some mentoring. In any occasion, keep reading and learning. There are infinite ways to be involved in real estate and you can never know too much. Best of luck!

Trio Martinez · Answer

@Corby GoadeI love this idea and its something that's been on my mind, but I don't know how to pull it off. My dilemma would be coming up with the money during the year to pay for the new building. The sample course load that I looked at online would have me in class from 7am to 4pm Mon-Fri. Its recommended not to work too much if at all so you can really get the most out of your education and have extra time to study. The challenge is what kind of job can I get where I'm only working 3 days a week, mostly Saturdays and Sundays, but will help me make enough money to save up during the year to buy a new property each year. Any ideas?

Trio Martinez · Answer

@Corby GoadeI was originally looking at multifamily homes but single family seem easier/less expensive to get into. I have to be able to live in the same place that I buy for the first deal. I'm currently looking at single family homes near a university I want to attend. If I do that I plan on renting out bedrooms. How do you search forums for specific subjects?

Corby Goade · Answer

What are you planning to do? Flip? Buy and hold? Wholesale? Lots of ways to make money, but you should focus on one and learn everything you can. Once you are comfortable, if you have the interest and drive, you can try another strategy. Best of luck!