HI ya,
Pretty much in the same boat but I started with even less to get to this point. I know to be successful in this you have to be prepared for risks. If you are not prepared then you find yourself right back in the struggle.
I had to file bankruptcy to get to this point and get a fresh start. Severe? Yes, but I now have better credit and because of what I had to go through I never ever want to find myself in that space again.
Follow me for a sec.....
I do not have a degree, I am 42 and was in a $16 an hour job. However, it was strategy. My background is in offices. I took a job paying $16 ONLY because it was going to teach me skills to get paid better - accounting. I told them from the start I wanted to be there to learn and they threw everything at me.
I had studied real estate investing for 2 years prior to this and hit the wall - no money, no credit, no confidence. SO I had to put real estate investing (REI) on the side burner -- still driving looking AT houses and getting to know more neighborhoods.
After work I would self study on software, took several MOOC classes, youtube until I found good teachers, etc. After a year of this when I felt I had a good comprehension and superiors agreed, I polished my resume, contacted recruiters and told them what I was looking for and my low dollar was $25 an hour. I learned to sell myself to the recruiters by reading books about selling myself (something you need in this game). To my surprise I got WELL over this amount.
I then moved into a studio. I can afford a very nice luxury apartment, but I am saving that cash for investing. I know you have kids so studio not an options. But perhaps there are other areas you can find to make sacrifices? Cars, neighborhood moving even if it causes a commute, ANYTHING helps.
You do not need to file bankruptcy (I struggled for years before I came to terms it was the best thing to do) and you do not need to pay anyone to fix your credit. myFICO.com forums are a WEALTH of knowledge from people who have been where we are and explain how they have risen above it. If you don't have a lot of cash to invest, paying someone to fix your credit is not going to help you develop the skills you need to be successful in the long run of REI. Easy come.. easy go....
SO here I am..... one month bankruptcy discharged and 2 months into my new job. Because of the knowledge of myFICO and BP, my credit score is higher then it has been in 3 years and I now have an emergency fund of $1,000 (VERY IMPORTANT) and $2,000 in the REI fund set to grow to $10k by the end of the year and credit should be around 600.
Still not enough.... you need your foundation to be as solid as it can be so when the times get tough, and they will, you will not be shaken.
By the end of next year I should have well over $20k to invest, my credit will be at least over 620 (min. to get conventional loan- which I do not qualify for until 3 years after bankruptcy discharge).
Do you need good credit to invest in REI? No. Do you need good credit should **** hits the fan, especially as a newbie? YES you might! Make that foundation SOLID!
So while I am waiting for me to finish getting my **** together, I will get take REI off the side burner and catch up on regulations/laws, making connections/networking, research and drive for dollars to see if I can find houses for others. Even if I do not make any money, if there is an opportunity for me to help someone else make money I can find an opportunity to learn. Never enough knowledge and this will eventuality make me an authority in my niche and will be sought out by the time I have money to invest.
REI is the long game. You would not become a pro footballer if you never went through the trenches of practice and conditioning your body and learning strategies. I guess it all come down to what sort of baller you want to be.
I hope this helps someone to keep your heap up and keep climbing the mountain.
The thing that keeps me from not letting my money burn a hole in my pocket is another recession WILL come, it is 18 year avg cycle... so the next one is due somewhere around 2022 - 2026 (the market indicators have already began a year ago but this is a whole other large convo).
So guess what!!! By 2022-2026 if we play our cards right, we will be able to SPRING in to action like the investors did in 2008. Swoop in with the wads of cash we have saved up, get the deals and help save people from loosing their house to the bank!
THIS gets me excited to stay at bay!!!!! Like a tiger waiting to strike.
Or short answer.... invest in crowdfunding REI like fundraise, groundfloor, etc. I have not looked into them but maybe you should if You feel you HAVE to invest right now.
