All Forum Posts by: Richard C.

The rate is competitive over the time period of repayment, yes.

Remember, the problem we're supposedly mitigating here is a short-term cash crunch.

I stand by my position that this is a decision personal to each investor and that there are valid reasons why an investor might prefer to build equity rather than maximize cash flow.

My observation is that those who are chest-thumpers about cash flow being all that matters and leverage being a miracle tend to have certain characteristics. First, they tend to be in low-appreciation, low property-value markets. Second, they tend to be relying on cash flow from their real estate investments to fund their current lifestyle. Third, real estate tends to be their only investment, the one thing they are counting on making them rich.

For me, real estate is the low-risk portion of my portfolio, and the means by which I will effect an inter-generational transfer of wealth. I don't need to take money out now, I am not relying on this as my retirement, and if I become very wealthy, it will likely be from my main profession.

Not everyone is you.

They will find out in seconds, if they look.

Whether they look or not is going to vary.

Never mind "investor code of conduct." There are much bigger issues with what you are proposing. Like criminal fraud charges (unlikely but maybe possible) or the bank calling the loan (not just possible, but quite likely.)

Also check out the New Hampshire Housing Finance Authority, and especially their homebuyer's education seminars:

https://gonewhampshirehousing.com/learn-how/home-buyer-events

Bottom line is that this is a marathon, not a sprint. I know that is frustrating, but it is how it is.

You could also take that $300 and get a secured credit card. And be really, really careful with it.

If you are not a member already, join St. Mary's immediately. They have a credit-builder loan of some sort. Just make sure you pay it.

You can learn something and meet some people working on a Habitat for Humanity house as well.

What's your credit actually like? Go to Equifax and you can buy an actual FICO for about $20.

You can probably get the lates cleared. If the student loans are not actually in default, they're fixable, too.

No verifiable income is tough. It will ease somewhat when you have been showing income for the rental for a couple of years.

Here. $349, in Wolfeboro, in the evenings:

http://www.therealestateclass.com/Page.php?id=63

Or you can take a real estate licensing course, which you should be able to get done for that $300 (give or take) and get someone to take you on as a part-time agent. Maybe you will get lucky and sell a house or two, and have some seed capital. At the very least, you will have some exposure to the local market, the ability to see a whole lot of houses, and the ability to gain a veneer of professionalism.

And don't respond to threads here you don't approve of with suggestions that people place various portions of your anatomy in their mouths. At your age, with no job, credit or experience, people are going to be concerned with your maturity level, and stuff like that will not help.

No job, no credit, no experience?

You're not flipping anything real soon. Sorry to be harsh, but it is what it is.

Some will suggest wholesaling. I hate that suggestion for new people, because keeping yourself out of trouble and actually providing something of value as a wholesaler is not beginner's work.

I suggest you learn, read, bide your time and wait until you get out of school and get a job. And by "learn" I don't mean study up on sub-2s, creative financing, assigning options, etc. I mean learn how credit works, build a decent FICO, learn about various conventional financing options, etc.

Then 3-4 years from now, when you are out of school, have a job, good credit and a few thousand dollars, go shopping for a Homepath duplex in Claremont or Newport

Well, that depends on what repayment term we are talking about, doesn't it?

Can I take a draw on an equity line (to get past the sort of short-term issues mentioned above, like loss of employment or emergencies) and end up paying a lot less than with an OO loan over 30 years? Sure can.

There can be any number of reasons why the OP's scenario might work better for him, or any other investor. I might be very confident of my income over the next 15 years, for example, but not over the next 30. It is an individual decision, and there is no globally correct answer.

In my case, I have 3 properties. I'd like it to be 10. I have no interest at all in 30, or 300. And I don't need to pull any income out for the foreseeable future. I should be able to get to 10 solid properties, that are entirely paid off, by when I retire in 20 years. And those properties will then represent a small, albeit important, portion of my retirement portfolio.

Like I said, it depends on the investor.