How to get started with $8000 in Pennsylvania. Ideas or advice?

Question

I just Finished Rich Dad Poor Dad. Great book! Im still uncertain and a bit apprehensive as to what move I should make. My credit is not good at 600. I am a General contractor who can build a house from foundation footing to roof ridge vent, so Im leaning towards brrr's and foreclosures. I know I should collect some numbers and start using the calculators on here yet the snow storm today is not helping that avenue out at all. I guess Im just reaching out to soo if anyone has anything they might want to share. Or possibly someone might want to go in on a deal together being that I  can personally handle the rehab/remodel aspect of a flip house. Im very new to this and although I do own a house, since the housing market collapse I owe more on it than its worth so no equity option there.

John Leavelle · Answer

Howdy @Jason Donald

Welcome.  You actually have a leg up on a lot of new investors.  Money aside, you being a GC makes investing in distressed properties a perfect fit in my opinion.  Bad credit is no problem. Just use creative financing (Seller financing, Hard Money/Private Money Lenders) to fund your deals.  You could also get an equity partner with good credit to get conventional bank financing.

Before you start jumping into the BP calculators just make sure you completely understand the analysis process on paper.  Once you are comfortable then use the calculators to speed up the analysis.

Be sure you understand the full concept of BRRRR and how to do it.

Hope this helps.  :)

Jason Donald · Answer

Thanx John & Jack! Ive considered virtually everything that you said already. Im still researching possibilities from many different angles. Jack.....The reason I only have $8K is bc of a bad business deal & marriage in Ecuador that I just returned back from after 5 years. We all hit those brick walls and fall down in life (or most of us) and we have to pick ourselves up and try again. I do still have beach property, which I should mention has engineer & architect plans for 3 unit apartment building, which Im either going to sell or looking for investors to build the units and rent/sell. I have pics of the beach property which is developed, having electricity, water and an enclosemente wall around it (thats the way they build there). I aslo have absolute paradise property in the jungle area with road access that runs right thru two properties I have that have property lines on 3 of the 4 sides which are natural rivers that come down from the mountains. Now that I think of it, Ill be posting about that on here too as another option for reaching out and networking. I speak, read & write fluently & know the ways of the system fairly well having lived and interacted in the country for 5 years.  Im also seriously considering real estate licencing again as this area is right on rt 80 that goes right into NYC & NJ. Much action is expected in this upcoming year and years to come as far as sale and investing goes. Id like to get in while its still at a low hummmm. And thanx keith! Im actually going to be looking into portfolio loans with some small banks & I have a friend from Colorado who claims to be very interested in coming out to the Poconos to do some investing with me. I have been leaning on the foreclosure direction for some time. Anything else anyone would like to share would be great! Thanx again

Keith Ransom · Answer

Hello there Jason

I would be interested in seeing how we can work together to achieve your goals.

We can provide JV partners, Credit partners and we can also provide 100% financing on good deals.

We also like to partner with general contractors on project as well.

I invite you to check out our website http://www.unionofcredit.com and see the many services we can provide. Since you have some money saved to invest, you can get financing for a good deal.

Jack B. · Answer

As the above poster pointed out, your background as a GC is valuable to a role as a flipper with a hard money lender or creative financing. However; if your house is still underwater since the collapse from a decade ago, then I'm not sure the market your are in is a good flipping market. It sounds like demand is low and supply is high, keeping prices depressed. Although I know a lot of people like to tout these no money down real estate strategies, they are like unicorns when they do work. The reality is that it takes money to make money in RE and you need more like 80K instead of 8K. Perhaps pool your money with a family member. You provide the labor they provide the financing. Get some money saved up and repeat on a larger scale. Also, as a GC I would think you'd have more thank 8K saved up to invest, no?

How to get started with $8000 in Pennsylvania. Ideas or advice?

Most Popular Reply