Shy but eager newbie!

[Jessica Melendez]

Hello BP, I’m Jessica! I started listening to BP Podcast about 2 weeks ago, and I’m must say that I cannot get enough. I read Rich Dad Poor Dad yesterday (yes one day). I’m ready to start investing, like yesterday! To give you guys a bit of a back story .... I am 28 years young, Accounting major. Currently working as a Staff Accountant at a big Real Estate company in Midtown. I’m a true believer in implementing the things I learn at work to my personal life. Everyday that I analyze these financials I ask myself, why am I taking so long to invest in real estate. Everyone starts from nothing (or somewhere). I was recently trying to purchase a condominium in Yonkers. Unfortunately, a cash buyer out-bided me. After listening to about 20 podcasts I’ve decided to purchase a Fourplex. Of course, living in New York makes my market much more expensive. I truly believe the Bronx area is up and coming. I have found a few properties I’m interested in. Where I seem to stumble is where to start. I can get an approval for a conventional loan, but not for the amount of the asking prices. The strategy I come up with at the moment is getting a Private Lender. Looking for guidance, advise. I’m eager to learn and take action. Thanks in advance! Xoxo Jess.

[Ceasar Rosas]

@Jessica Melendez

Welcome to BP, and congrats on looking into getting into real estate investing. Being in your market I can tell you 10k is not enough to get into a 4 unit. If you are looking to partner up start going to meetups and network like crazy. Check the real estate events and happenings page right here on BP. I've seen people try to use these grants and while there are success stories they are not easy to get done and offers don't usually get accepted because they are outbid by others with better terms in this competitive market. If you have a family member who is a Vet, that would be one of the best ways if they'd like to get in on it with you using their VA loan. 0% Down. Next option would be FHA which is 3.5% Down. A 4 family is going to be easily 650k and better which makes 3.5% DP $22,750. If you can tie in your closing costs which equate to about 5% of purchase price here in NYC, then you would need that and I believe at least 3 months of reserves for the bank which can be in retirement accounts.

I think that although you are super eager to jump in, this is the time to be saving and learning like crazy. Meet and network like crazy and when the time is right it is right. Even if you get all the grants and assistance in the world, you need to make sure you have a nest egg. You need to always be able to access money for any unforeseen events. 

Good luck, I hope this helps!!