Hi Aaron
I can tell you're a great writer from your introduction! Maybe i'll hire you to write my. introduction ; ) or better yet
i'll train you to be an investor and we write a book --A to Z. I bought my first property at 24-- my first job out of grad school was as a chemist for Miller Brewing Co in NC. They offered me a position in Los Angeles.. and I initially turned it down. When they asked WHY? all i could think of was the difference in 'cost of living' between Greensboro & LA.
(i was actually just chicken to move by myself across the country )
15 minutes later the Plant Mgr called me and said "we will buy you a house."
My poor Mom, that offer was on a Wednesday and i was on a one-way flight to LA by Saturday. I remember thinking, "wow why would anyone STAY in grad school to get a painful PHD in Chemistry when companies are so awesome to their employees?"
That was in 1981--- how things have changed just during my working career.
I'm 60 now, retired, and for the first time looking at starting to sell my properties as FSBO to owner-occupiers starting in 2017.
The props are now too high priced to be investor rental props.
So i was investing 'with other people's money' long before Robert Kiyosaki's book in 1997-- but that book confirmed what i was already experiencing andFOCUSED my mind to lead me to a NEW career --in investing and helping other people invest.
I'm so glad i got my real estate license back in the 90s because i quickly figured out that --wow when I buy a house I GET TO PAY MYSELF at closing (as my own buyers agent) a truly negotiable commission-- ( free market) financed into the loan. Rule of thumb: every 10,000 in loan amount adds about $50 a month to the monthly payment. hmmmm
Real Example: In 2002,we bought (owner occupied zero down payment) a $240,000 'list price' -foreclosure (near Ballantyne-- 2800 sqft 4 BR. 3 BA on the golf course) from a local credit union and they had done A LOT of rehab.. new int/ext paint, new carpet,replaced inground pool equip and liner, new windows, refinished hw floors.. but during the inspection we found both HVAC systems were the original 1983.
So i got quotes ($12,000) and financed that into the loan , funds escrowed and work started on the day of closing.
Remember-- that only added $50 a month to my PITI.
Then, usual buyer agent commissions run about 3% of the loan amount
which at 100 % financing 240 + 12 is 252... so instead of 3% i wrote the offer to say 5% so instead of ~~7500 i paid myself $10,000+( which added another $50 a month to my payment. I got $22,000 basically at closing and a really nice golf course community home on 1/2 acre.
The house appraised because it was a foreclosure and that $10k paid for our move and several months of mortgage payments.
i still have that house--now rented at $2400a month ( my PITI and HOA is $1380) and zillow says value today is $415,000. i've endured a couple of bad tenants since it bacame a rental in 2004--( like during the crash) but most have been a dream.
So i see lots of opportunity for you-- you can buy HUD or Bank foreclosures as owner occupied. You can rent one of the NCSECUs fixed up foreclosures (if you are eligible to become a member) and they will help you buy it --as owner occupied.. then in 6 mos or so, you can rent it out to only a PERFECT tenant and go buy another property-- if you are a realtor-- there's another payday.
Credit Unions are the next best entity after Miller Brewing Co : )
When i train investors:
1. Make money the day you buy.
2. Keep your money in your pocket.
3. i actually have 10 rules but this post is already WAY too long : )
send me a colleague request and i'm happy to share with you off line.
Learn all you can from BP. Learn about Property Mgmt and a few things about landlord/tenant law in NC.
Think about getting a broker license-- your buyers will teach YOU so much!!
Go to the website www.ncrec. and you can read example standard NCAR RENTAL lease , offer to purchase contracts-- now insanely long, etc.
And ask questions. So many people helped me along the way.
Happy & Successful Investing!
Work while you are young and Save up some cash--every property will need some unexpected repair and you are the landlord -- build and protect your credit score ( you'll never regret that effort)
