All Forum Posts by: Account Closed

I haven't started paying off my debts yet but I am mapping out what I want to do years down the road once that is out of the way. Thanks for the info on the down payments. My first thought is that if I were to save and purchase my primary home that I would not be able to save a whole lot for purchasing rental properties .. I'm thinking I would rather live with my parents and pay low rent while building a real estate investment portfolio and then purchase a home once I'm generating enough income to invest and pay bills.. rather than getting tied down with a mortgage and potentially ruining my opportunity to invest full-time..

As an aspiring full-time real estate investor/investor, should I take out a mortgage on the home I want to purchase before or after I begin to purchase rental property? Should I wait until I have a substantial amount of generated income from properties I have purchased where I can afford to continue the acquisition of new assets and pay a mortgage on a home? I am trying to get an idea of the best moves to make after I pay off my consumer debt and student loan debt.

@James Wise Yes, I plan to eliminate the consumer debt first and then proceed to save for the first investment. My research led me to FHA loans and I was wondering if that would be a good route for me to go, so thank you I will begin to research more into those loans as they may be the best option for the goals I have starting out. I found this information helpful, thank you!

@Marcus Johnson Yes, I am learning that there are many risks involved in REI if you jump in without knowing what you're doing and don't plan well enough financially. Thank you for the recommendation, I will be sure to look up some of David Ramsey's material. Thank you, good luck to you as well.

@Tommy F. If I want to become successful in REI I know I'll have to be honest with myself and others to obtain the knowledge I need. Thank you for your advice and words of encouragement. You take care as well.

@Brandon HicksCongrats. I started this MBA program before I gained interest in REI but since I seriously want to become an investor I believe that it may be wise to put my efforts elsewhere and have more faith in my ability to generate the income I want without spending more money for that degree. Do you have any advice for buying with no/low money down? At risk of sounding like a complete idiot, how exactly does that work? You purchase the home/property paying the principal/down payment and then you either rent it and pay down the mortgage with the tenant's money/money you pay during vacancies and eventually sell it after/if it appreciates? How exactly does the process of buying with a down payment and then passing the property off to someone else for a profit work? If I don't have to rent and manage a property to make money I would like to learn more about how I could do this through REI without an REIT or similar entities...

@Tommy F. I'm also aware that there are many expenses that come with rental properties including vacancies and repairs. Ideally I would begin REI after I am comfortable I have the income to support all possible expenses, including unexpected ones. I would definitely not want to have anything more than the remnants of my student loans to worry about once I began the process of shopping for properties. I plan to attack my loan debt aggressively enough to where I would be free of it or close to free by that point.

@Elizabeth Wilson Thank you for that. I have been contemplating if pursuing this advanced degree will have the best ROI in regards to my goals. Although I have read that online degrees don't always have the best ROI, I was hoping to utilize it along with experience to obtain a higher paying position that I could use to support my future REI. In my city most people work in healthcare, manufacturing or in corporate positions and I believe I could benefit from an online MBA here. Without the right degree(s) or the right trade experience you will most likely need to work two jobs for your desired income, especially if you desire to attain success in REI. I don't have relevant work experience to receive a high pay grade in any industry besides sales right now so I am deliberating whether I should continue in school or just strive to climb the ladder without an advanced degree to avoid more debt and to achieve financial freedom sooner. I don't see possessing an advanced degree as relevant to REI as I know there are many who have achieved success with little to no formal education but I guess fear has me clinging to the idea of needing degrees to make more money even when the money isn't guaranteed and the financial consequences are. I have to get out of my indecisiveness in decision making to be a successful investor so I guess I have some things to think about. Thanks for the input.

@Tommy F. I appreciate your frankness as I shared some of my more personal details in an effort to receive the most valuable advice possible. I am aware of the mess I am in, I am only seeking to gather information so I can begin to study and understand what I will need to prepare for and to get an idea of what I will be taking on after I am in the right financial and mental position. I graduated last year but have been out of school years, having had a baby a week after graduation so I have set myself back in regards to starting a career relative to the degree I am pursuing as well as figuring out exactly what I would like to pursue a career in. I have full-time work experience, unfortunately none to compliment an MBA YET. I don't have the luxury of a lot of time to figure things out at 24 and I should be a lot further in life but I am working toward my goals and am confident that the opportunities meant for me will not miss me!

 I have a very good and consistent child support arrangement which I am aware is essential. I have not had steady work for the past two years to be in position to make contributions to my parents due to a lack of maturity and job satisfaction but that has changed. Of course when I am in the position I plan to make the appropriate contributions to my parents as I see the value and necessity for me to practice budgeting as well as to show gratitude to my parents. I do see the value in paying rent for the sake of practice and learning instead of just paying utilities. I will consider a similar arrangement if I decide to take that route but I agree with the "paying your own way" idea as I would prefer to branch out on my own and learn to hold my own.

I am also aware of the tuition assistance that some employers provide and that would be ideal to limit my debt. If I find such an employer I definitely plan to see what I can do to take advantage of that opportunity. I am pursuing this degree to avoid having to work two jobs for decent pay rather than moving to an area out of state where I can best utilize my undergrad degree.

Hopefully I've cleared up the misconception that I am planning to jump right into REI before taking care of my responsibilities. With so many Americans in debt I was just curious as to if anyone had any ideas of saving money while trying to pay their debts but I believe that the best answer is to solely focus on getting my finances in check before I allocate a dime to investment savings so that I can focus 100% on my investment goals when the time is right.

I am a new learner in the REI world and a future investor but a lot of the numbers/percentages and jargon I see when researching REI are a little intimidating at first glance. I don't have a background in accounting or real estate which I believe would be helpful in aiding me to understand some basic key concepts and calculations when learning what it takes to be successful in REI. What are some essential aspects I should look for when analyzing a market in preparation for making a purchase and what should I know about mortgages as they relate to loans in regards to selling a property after acquiring it through a down/ principal payment? Are homes that are depreciating/ have a negative depreciation worth renting for a of couple years to acquire new assets? What more should I know about appreciation and depreciation as well as other changing aspects related to a property's value that are essential for investors to track and/or be knowledgeable of (assume I know nothing)?