All Forum Posts by: Account Closed

@Bijou Diaou

Why you in such a rush to get into real estate, for obvious reasons your not ready yet or in that position to move forward.. save up more, fix what needs to be fixed & then jump in with confidence.

As others have mentioned, I would work on fixing the issues that are preventing you from securing bank financing.  In my opinion, bank financing especially in this market is the best way to buy real estate.  I would continue saving while you worked on fixing the bank issue and then invest in a slightly better asset.  It is admirable that you've saved $10k, and think of the additional funding that you could save to be in a more secured financial situation.  You wouldn't want to spend all $10k and not have any sort of reserve in case stuff happens (which seems to be 100% of the time when you leverage yourself too high).  

@Bijou Diaou

Would using the 10k to clear your debt allow you to get a mortgage? Clear your debt and save again

@Bijou Diaoou

Thank you, Tracy, This forum has been discouraging and crushing, but I am honestly thankful for all the advice from all these great investors. I am 21-years-old, debt-free, and have good credit. After dealing with depression, I dropped everything and toured Europe, and that caused my work documents to show up as insufficient. I don't know what part of my forum lead some people to think that I was having financial difficulties in my day to day life or only had 10k in possession that is not TRUE! After analyzing my finances and separating my emergency fund and monthly expenses, I decided that I would begin investing with 10k because that is what I am comfortable with at the time. I have a fulltime job and for the past six months all I have been doing is working on my business plan, reasearching and networkong with other investors ; Growing up, I watched my family lose everything due to lack of money management. Because of that, I pay extra close attention to the way I spend my money and want to move smarter and educate myself. I have done a lot of research. My question was to see what other people would do. Some of my peers are out buying materialistic things and I rather invest and I dont see the harm in that.

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@Bijou Diaou

It was a single was a single family home that we purchased for $265k in 2010. We sold it in 2019 for $425k and did a 1031 exchange into our 6 unit.

@Bijou Diaou forget the bank. Find a property you can owner finance with a low (possibly No) downpayment. Erase the bank from the equation completely. Depending on how good of a negotiator you are and the motivation of the seller, you could very possibly get much better rates than you would going through with traditional financing.

@Bijou Diaou

Would using the 10k to clear your debt allow you to get a mortgage? Clear your debt and save again

@Account Closed

Banks are in the business of handing our mortgages. If that is not happening in your case, there might be mitigating circumstances. I can understand that sometimes life events occur which may cause a bad credit score or financial hardship (not saying they happened in your case). Maybe you can try to fix those areas where your mortgage application is lacking before trying to secure a house.

This will mean getting on more secure financial footing before embarking on real estate ownership. It will also benefit you in many other areas as well as ensuring, on average, that you are better able to own a certain piece of real estate long term. 

If the above doesn't apply, you can always try to get seller financing. But remember that certain owners can be predatory and you might be dealing with someone who "loans to (re) own".