All Forum Posts by: Fabrizio Vallejos

@Fabrizio Vallejos - it depends on what type of REI you want to get into. buy and hold requires cash for down payments and good credit with a stable income to get approved for a loan, it also requires less time for the day to day. Flipping also requires cash for the down payment, but the HML for the flipping have less requirements for income and credit and are more tied to your experience and track record; and will require more time to do the day to day.

Keep in mind any career change will result in a 2 year waiting period to use the income on traditional bank applications.  I kept my day job and did buy and hold on the side until I had enough rental income that I could use that for more loans

Hey Fabrizio, I'm a REALTOR ® in Kannapolis, NC.  My advice would be to first figure out where your money is going to come from.  I would start talking to small local banks in NC i.e. First Bank, First Citizens, F&M.  Tell them what you are looking to do and let them tell you the best way financially to go about it.  I use a bank to buy my "buy & holds" and I like it.  Private or hard money can come with a lot of strings and can be very expensive.  

Also may want to tap into relatives to see if they want part of the action.  Let them front the money and you take care of the property. 

Let me know if you have any further questions.  I think you are on the right track!

What year are you in school @Fabrizio Vallejos?

@Fabrizio Vallejos  The reason I pushed you the other way was for you to gain knowledge about investing in real estate and making a living at the same time.  As Im not sure if you know, but about 87% of the people that have become agents actually quit after a year.  You need to be highly focused until you create a name for yourself as I'm sure any agent here will tell you.  Plus were talking working 7 days a week 12 hours a day  The biggest reason of all is you dont make a dime unless, you sell a house or someone sells a house you listed. Money goes out driving to the office and showing clients properties but nothings coming in.  Also something else as Im not sure what you know.   The commission on the sale of a house is not one persons.  The 6 -7% commisson can be broken down 2 to 4 ways.  

Example:  You sell a $200,000.00 home @ 6% commission = $12,000.00 the break down of who gets what is usually like this unless your selling a house a month.

Listing Agent:  $4,000.00 

Listing Broker:  $2,200.00

Selling Broker:  $1,800.00

Selling Agent:  $4,000.00

So selling one house a month isn't bad but the good ones are selling 2 - 3 or more a month! If you get into selling you'll see the listing broker get a bit more because of advertising and the MLS

Fabrizio, Im going to throw something at you here.  Are you looking to just work for a realtor or invest in property?  The reason being if your going to invest and dont know the ins and outs I'd suggest you take a course or even get a license to do home inspections.  It pays very well usually 300.00 to 600.00 per house.  The knowledge it gives you will pay dividends when you go to look at properties your interested in buying.  Even working as just an agent will help you help the homeowner in coming up with a price that is right to sell it at.  So many sellers over look the lil things that can be fixed easily and add value to the home as a whole!  Good Luck in your endeavor and as Nick above says network network network!