All Forum Posts by: Clayton J.

Hi Hattie,

Thanks for the responses. Unfortunately, I don't believe co-signing is an option and I know that owner financing is not an option.

Hi BP,

Across the street from my sister's house is a home that is on the market for a very good deal. For the asking price, I believe that I could easily clear the mortgage payment (and other payments) with the rent and could afford the costs until it is rented out using money I've saved up from working in the past.

However, the problem is that I'm currently a senior in college and due to my class schedule I've had a hard time finding a job that would work with me. My credit is pretty good (760+ FICO score using both installment and rolling credit) but obviously the part about being unemployed is going to make it extremely difficult to get a loan through traditional routes. Also, using family and friends is a very unlikely route.

So my question is, how could someone in my position raise the capital and obtain a mortgage on a home? Is it even possible?

@Chad Carson

That's an interesting way to look at it. Obviously I have a little while to figure it out but like I mentioned in my original post, I'm not completely sure whether I should start with a flipping or buy and hold strategy. My ultimate goal is to be 100% buy and hold for passive income but I thought flipping may be a better strategy to start with simply to build capital to reinvest. Assuming I were to have a job in finance, do you suggest using that money in place of capital from flipping? I know it's more complicated than a simple yes/no but I would like to hear your thoughts.

As far as the living frugally thing, I've already got that down pretty well. Call me cheap or what you will but if it's not food, I'm not buying.

I'll definitely try to make it to a REIA meeting or two over the summer. Is there a website for the REIA?

@Chad Carson Thanks for the advice! My plan is to work with something related to my degree in Finance and investing on the side to begin with. With that being said, if an opportunity related to REI were to present itself to me I would absolutely consider it.

Also, thanks for pointing out The Book on Estimating Rehab Costs. I am definitely going to add it and The Book on Flipping Houses to my library in the near future.

As for seeing me around Greenville and Clemson, I'll be driving through Clemson every day this summer again for my internship in Seneca.

@Lee Busby Ah, that makes sense. I wasn't aware of that stipulation. Thanks for the help!

I'm not going to pretend like I have any experience with real estate investment. However, I'd like to think I'm pretty good with managing money. For whatever it's worth, I think selling the property would be beneficial to you. It seems like it could help you gain a little more financial flexibility and possibly help relieve some stress. Not to mention, you have one less thing to worry about while you and your wife have a child (congratulations by the way!).

Although, I'm just a college student trying to learn about real estate investment and have no experience with renting/selling properties or raising kids. So take this with a HUGE grain of salt. Good luck to you and your wife!

I don't mean to hijack this thread but could someone explain the capital gains tax part? I thought you are only taxed on capital gains when the house is sold. Why would you be taxed for holding on to the property? Does it have something to do with the refinancing? Or maybe I'm reading incorrectly.

Sorry for the stupid question.

@Chris Pastrana I appreciate the support and input. I will definitely have to utilize handymen to start out with. As for finding the right person, I have read in several places that most good handymen are found by referral and word-of-mouth. Do you have any idea who I should talk to in order to find the right person?

@Christine Glasner That is all great advice. I really appreciate the input.

1) It seems my thought on the flip vs buy/hold strategy is the opposite of what you do. My thought was buy house > fix > sell > use profit for down payment(s) on next house(s). Whereas based on your advice you suggest buy house > rent > use cash flow to buy next house(s) to rent/flip. My thought was that there would be a lot of money tied up in the rental property as you have to worry about vacancy, maintenance, and other costs. However, based on your profile, this strategy seems to be working for you. Are there other costs/risks/downsides to the buy and flip strategy that I am overlooking that makes buy and hold a more viable option?

2) That is awesome advice. I'm looking into classes at Home Depot right now. Thanks for that! Do you have any classes in particular that you have felt helped more than others?

3) I agree! Education is never a bad thing. I hope it helps your husband and I will probably do it myself as well.

4) More great advice! Thank you! Also, I have uploaded a picture. I didn't realize I have practically no pictures of myself. This one is a little old but I guess it should work.

Hey,

I am a new member from Upstate SC and am currently a junior at the University of South Carolina. I'm majoring in Finance and minoring in Economics (I will be taking some real estate and real estate investment courses over the next year). I've been interested in real estate investment for quite a while and I'm getting excited as I get closer to graduating and, thus, being able to actively invest in real estate. I've been extremely fortunate in that I have had to take on very little debt to get through school and, therefore, I plan to hit the ground running as soon as I get out of school and get a job.

My main goal is to be self-employed by the time that I am 30 through real estate investment. I know this is a very lofty goal but one that I really hope to achieve. That will give me approximately 8 years once I graduate to reach my goal.

The markets I hope to utilize the most are 1) Greenville/Clemson/Anderson (Upstate SC) area (this is my home and where I intend to live), Columbia, SC, and eventually (in the long run) into the Charlotte, NC area.

Some questions that I have for other members:

1) I plan to start off with single family homes. I would really like to buy and rent but feel that flipping may be a better option to start with in order to generate more capital to invest in other projects. What are your thoughts on this? Is my thinking wrong?

2) Despite my blue-collar upbringing, I am not a very handy man. This will obviously increase my costs for buying/flipping and even renting as I will have to outsource general repairs and maintenance. Specifically when it comes to buying and renting, what is the best way to find someone to perform repairs and maintenance? Note: I do plan on learning as much as I can and increasing my handiness as I go to be able to take on projects and some maintenance/repair on my own.

3) I've thought about taking real estate appraisal and home inspection courses through a technical college after I graduate. I thought these might be helpful for me to understand as I look at houses in the future. I wouldn't consider myself to be a professional or use my own appraisals and inspections as official but thought the knowledge might help as I could get a general idea of what a professional would think of the houses I'm looking at. Would this really be helpful or am I overvaluing these aspects?

4) Finally, of course, I would like to find a mentor or two in the area (or even someone from a distance who could communicate via email). If you have any ideas or could point me in the right direction of someone who could help guide me through the beginning process I would be extremely grateful.

Sorry for the long-winded introduction. I look forward to your responses.