All Forum Posts by: Raquel Pea

Congrats Jessi :) Looks like your first success in REI, but I have a feeling there are definitely more to come! I was curious if this home was a foreclosure, and what renovation work it needed done. Thanks a ton for the inspiration! Raquel Pea

@David Dey Thank you for the connection with Marina Rodas, sure we'll be "accountabillibuddies"! 

Thank you also for the information on how to find investors to shadow, this has been somewhat of a mystery to me that not many people seem to touch upon. This may be a newbie question, but where exactly would you recommend I look through, is it the online public records for my county? I will PM you for this. :)  

The advice you give is so much better than the "just do it" and "have a positive attitude" type of advice, it is tangible and I can take action now.

Immensely appreciated!!

Hi BiggerPockets,

I am reading Brandon Turner's Book on How To Invest in Real Estate With No or Low Money Down.

I'm unsure if I will qualify for an FHA-insured loan for certain reasons. First of all I am a full time undergraduate student pursuing Business and Economics. Because of my busy schedule, I currently make my income by driving for Uber and Lyft, which are great because they are very flexible. I would like to invest in a multi-family property very soon, which I would occupy while renting out the other unit(s).

I am very "smart" with my money and have begun saving the majority of my Uber/Lyft income, about $2,200 out of $2,400 per month.

Would this be a solid or stable enough source of income to qualify for a foreclosure with a price tag of about $190,000 (below market value) through an FHA-insured loan, assuming I continue with the same income and have a savings of about $16,000? What sorts of income can be used to qualify for an FHA-insured loan? My credit score is excellent, but I only have about 6 months of credit history as well.

What sort of down payment could I be looking at? 5%...maybe even 3.5%? 

I already have a private lender willing to pitch in $20,000 for needed home repair costs, and a family friend who is a contractor willing to help with repairs. 

I would prefer the lowest down payment option, as my goal would be to have the unit(s) filled within 2 months so that I can generate enough income to create positive cash flow, even if only a couple hundred in the mean time.

The location I am looking at has began a process of gentrification which is slowly driving housing prices up, now is the best time to invest and I am eager and excited to educate myself on ways I can get my foot in the door now, literally.

Any and all help is immensely appreciated!

Raquel Pea

@Russell Brazil Great quote from Warren Buffet. Real Estate investing is all about timing, recognizing market trends, knowing when it's too late to catch the incoming wave, and when it's too soon to paddle into the next one. Ultimately, it's having the guts to make a move. 

Hi BP, newbies and experienced investors alike!

As Mr. Kiyosaki himself said, "Smart investors don't time the markets. If they miss a wave, they search for the next one and get themselves in position. This is hard for most investors because buying what is not popular is frightening."

I would love to hear your stories of investing in a down market, how you prepared for the "wave", your expectations v.s. reality, challenges and resolutions, and ultimately how everything - including the anxiety and uncertainty - payed off!

Thanks in advance,

- Raquel Pea

@Cornelius Charles Thank you for sharing your immense success story with us! It inspiring to hear how you and your wife took the plunge even when you didn't have the answer to every possible question or problem. We totally learn through doing, and that's what scares the majority of "newbies" (at least me)!

How did the process of marketing and selling the property go, time-wise and financially? What marketing methods did you use?

Thanks a ton from a "newbie",

Raquel Pea

Congrats @Gina Worsham!

That sounds so exciting! Some of us here on BP are learning and learning about wholesaling, but have yet to take our first "real" step to close a deal. Would you mind sharing with us some tips or lessons learned on how you made your first successful wholesale?

Thanks a ton from the BP community!

~ Raquel Pea

Hi Dana,

Lenders are known to usually verify that the person who bought the home changed their address in regards to tax returns, voter registration, employment, mail, etc. 

If they suspect fraud, the rate will most likely not be raised, but they will call the loan. This means the loan will become due at that moment. They do this because of the inherent risk associated with investment properties. This is their prerogative. 

My recommendation is that you completely move into the property, change your address on all documents, and live in the property for a year before deciding to make any change. Otherwise, the risk seems to high. Granted, you may never be caught! It's just a matter of being able to sleep soundly at night. :) 

Good luck with everything.

~ Raquel P.

Thank you to everyone who has lended me advice! @Ryan Landis @Brian Serina @John Arendsen @Mary Ann Casey @James Paine 

It seems there is a general consensus, and I've taken it to heart. I will be continuing into Berkeley to obtain my degree while balancing my RE education and mentorship. Thank you guys for the extra push and foresight!

Immensely appreciated,

~ Raquel Pea

P.S. @Mary Ann Casey Soon to be a Junior!

@James Paine Not married yet, a tad bit too soon for me. Haha Maybe after Berkeley!

@Shawn Mcenteer Hi Shawn!

I should have made it clear that I was weighing out the options between two sides. The first is getting my degree in economics to provide me with a stable career and income. This would fund "non-creative" investments, such as qualifying for a loan and then finding renters.

The second side entails putting my degree aside while investing myself 100% into developing as a realtor, building my network and skills, and learning how to creatively invest with JV partners, owner financing, subject to, and lease option.

I know it isn't easy, and maybe even more financially difficult for a realtor, but realty is directly tied to my goals, and that's really appealing! Plus, I like your idea of falling up. Maybe I will learn more through the struggle of learning from my failures than I would taking the safe route..

Any thoughts? :)