I Am Broke And 20yrs Old HELP
I have never done real estate investing before and I really want to get started. I am interested in starting in realestate foreclosures but I am not sure how to get the "no money" down loans. I am not sure about the whole financing thinkg in general. Any help anyone can offer would be greatly appreciated
Welcome to this board.
I would start by reading the book "Rich Dad Poor Dad" and then "Cashflow Quadrant" both by Robert Kiyosaki. They are excellent books and a very easy read.
Next, I would recommend reading something more focused on real estate (if you still decide this is what you want to do). I got started on the Carelton Sheets no down payment system but many people on here like Ron Legrand. Basically all the concepts are the same and have been around for decades.
From there feel free to ask questions here to fill in the blanks. Most importantly is to get out there and start talking to sellers!
GOOD LUCK
Don't worry I'm sure a lot of us were broke as a joke at age 20. I was. You also need to get a decent paying job - one that keeps your life afloat and in addition lets you save some money. Several hundred dollars to $1K is enough to get you started at a tax defaulted land sale.
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I am 25 and also am broke! I have the carleton sheets program and have read the rich dad poor dad books and i only understand the basics. I don't get how to get started from where I am now. I am married and have a 1 yr old and a new born! i desperately want to do this but just don't understand the best way to go about it
If there is a local investment group where you are, go to the meetings. Maybe you can ask a successful member to partner with you. Start out by finding properties for them to invest in. They will pay you to do so. As you learn, you can jump in. You shouldn't quit your day job until you get your first few under your belt. Keep reading and learn all you can. Stay on this site and ask questions. Don't give up!
Maybe you should start off small, just to get some money in your pockets. Start off bird dogging. If you know how to get leads start selling them & build up your capital.
Check in your local library for the suggested books before spending any money. I actually found a Carlton Sheets audio set there. Also, there is a million bucks worth of free info right here on this board and these folks are great about answering questions. Your local community college probably has RE courses as well. You may not want to be an agent but you will still learn alot. See if there is an RE investment club in your area. That oughta keep you busy for awhile. Most people are broke at 20. It's what makes you hungry enough to work your butt off. You'll have to get a job that pays the bills but dont get something that leaves you dead tired at the end of the day. Even if it pays less get something that gives you a little time and energy for REI. You'll be better off in the end. I speak from experience. You dont need a new car every 2 years. Sacrifice a little today in order to do your dream whether it turns out to be REI or not. It wont take as long as you think.
Okay, I am broke but I do have a job, its just not the most money in the world. Can anyone give me advice about no money down loans. I went on ebay and bought the carleton sheets no money down set and put the rich dad poor dad books, what else
Loans change all the time. new loan programs are created that fit the market's needs. Call a mortgage broker and ask about "creative financing" in your situation. Have a deal or two in mind before you call so that you know how much you need and why. What is your exit plan? Assuming you get finances, can you actually make the payments? If the house doesn't sell? doesn't rent? market goes bad and property value goes down? property tax goes up? Have you accounted for insurance and maintenance if you have to keep it for a while?
Once you know a deal, just call 10-15 mortgage brokers from all over the nation (they must be licensed to deal in your state, but they don't have to reside in it) Call larger lenders and smaller loan and savings. Ask about portfolio loans and 80/20 loans where you have a second mortgage to pay your downpayment for you. Also look into seller concessions, so that you reduce or elliminate out of pocket expenses by having seller pay the closing fees. This is something best done through a "Subject to" clause in your offer, but in every deal it's different. There are some great articles on this site and others about reducing out of pocket expense. If you're not willing to dig through existing articles to find the info you need (and I know you're not, because answer to your question is posted all over this site) you will probably miss vital information about the deal and get yourself into a HEAP of trouble.
Focus on the deal, not on the loan. Buy a book called "The Real Estate Investor's Answer Book" it's a pretty good guide for many beginners.
I just wanted to thank everyone for their help, I really appreciate it. Iam just getting started on this site, so I appreciate all your help, even though I am asking some dumb questions, I am stil finding my way around this site.