New Investors Buying Rental Property | No Money Down

What’s up everybody, I’m Rob I’m Reshawn and this is Learn Hustle Grow! If you are interested in all things money Marriage and travel. This is the place for you When people learn that Rob and I are real estate investors We often hear statements. Like I’ve always wanted to do that or how did you get started? We started learning house will grow calm and this channel to answer your questions and to inspire you to take action in This video we will share what we believe to be the minimum requirements to get started in real estate investment based upon our experience, of course Mindset and self-study are first and foremost There’s no path to wealth without the belief that you can achieve your goals and the willingness to pursue knowledge When we are interested in something we actively research the topic What books have you read or heard? Are you listening to any podcasts or reading any blogs? BiggerPockets And afford anything are two of our favorite blogs and podcasts on the topic of real estate We feel incredibly fortunate to have found both resources seasoned investors understand the importance of staying abreast of tax laws and incentives Even if you don’t need the information in that moment Acquiring information is absolutely vital to your success There is always something new to learn Ok, you got the mindset and you’ve been acquiring knowledge next money There’s always stories of people investing with no money often those people mean no money of their own In order to get a bank loan for an investment property. You must have the required down payment Do you have any friends or family that can loan you the money? If so, you simply need a contract outlining the agreed upon terms of the loan What will he or she get for lending you their hard-earned cash. Most obvious is a higher rate of return Instead of an interest rate based upon your credit score the interest rate on a personal loan is Based upon the terms of the contract so you don’t have a friend or a family member willing or able to lend you the money research hard money loans the terms of a hard money loan are based mainly on the value of the property being used as collateral as Long as you understand the profit equation Profit equals revenue minus cost there is an opportunity to make money Your profit is whatever you have left after paying contractors and paying off the loan If you have borrowed the money required for the necessary down payment Essentially you have invested no money Have you served in the US military and received an honorable discharge? If so, you may be eligible for a VA home loan with no money down This is the path that Rishon chose to buy her first home in 2003. The seller was also willing to pay the closing costs Paying part or the full closing cost is a common practice in a buyers market in a seller’s market You will likely be required to cover your own closing costs in order to qualify for a VA loan You are required to live in the home in Most cases if you live in the house for at least one year you are free to turn the property into a rental Make sure you understand the tax implications of doing so Next you need credit in order to borrow money at the lowest possible interest rate Good credit is essential if you’ve ever attempted to make a large purchase such as a house car or boat Then no doubt. You understand the value of a great credit score Can you get a loan from a financial institution without great credit? Absolutely at the time as this video 580 is the minimum credit score to acquire an FHA loan an FHA home ownership loan. Also allows for a 3.5% down payment a traditional loan for an investor requires 20% down FHA home ownership loans are not for investors why mention it? Just as in the case with the VA loan the FHA loan provides you with an opportunity to turn your home into Your first investment property after one year of residence if you are new to home ownership Living in the home for that year will provide you with invaluable information when it comes to maintenance and upkeep Unless otherwise stated in the rental agreement as a landlord. You are responsible for all of the repairs required Living in the house is also an opportunity to pay down a portion of the mortgage Before you go on to make your next real estate investment the next component skills Why do you need skills you ask? When you lack money and/or credit skills can be an opportunity for partnership in order to form a partnership both parties must have something to offer new investors are often in search of Mentors or partners the experienced real estate investor has knowledge and property Some even have money if you’re looking for a partner to invest with ask yourself. What do you bring to the table? Can you paint sheetrock or lay floors? well It can take time to learn home-improvement skills Many investors find DIY to be a way to help reduce costs It also gives you a better eye for identifying quality workmanship People often ask why Rob and I are not flippers The answer is simple really we have found that in both the DFW and Norfolk markets Skilled tradesmen at a price that leaves room for profit can be hard to come by however If you have an HGTV show owned a construction company or can provide contractors with regular work This will not be a problem more about flipping When you purchase a property with intentions of flipping it your investment yields a larger return the faster you sell it For example, if you closed on the 15th of April your first payment is due on the 1st of June Technically you have until the 15th of June before most banks will as late as an investor Ideally you want to rehab and sell the property before the first mortgage payment is due in order to accomplish This you need to be able to do the work or have money to pay reliable contractors Reliable in the sense that they will show up to perform the work on your property while you are at your 9:00 to 5:00 job They will perform quality work without supervision if they are not committed to completing the work on time you Are responsible for continuing to pay them as well as paying the loan There are people who absolutely love being flippers ask yourself. Do you have the time? resources and Temperament needed to complete a flip project. We can’t talk about real estate investing without talking about Reed’s Not sure you want to purchase actual real estate research real estate investment trusts with the online broker of your choice REITs provide an opportunity to add real estate to your portfolio with no hands on experience and little capital Well, that’s our two cents on what it takes to get started investing in real estate Educate yourself to the point of confidence without being paralyzed There will always be things you cannot learn without doing you will make mistakes Mistakes are part of the education process If you borrow money Make sure you know the criteria for getting the best rate and the terms of repayment the decision to use credit is yours Having good credit allows you to take advantage of opportunities when you don’t have cash on hand Acquiring new skills is like building new muscle, how can it hurt? Of the things we mentioned as important credit money skills and the desire to acquire knowledge you will notice that we did not mention a mentor if You have a mentor or mentors great if not Don’t wait for someone else to get started Rob and I did not have a personal mentor when it came to investing we used books blogs Podcast you can do this Are you a real estate investor? How did you get started post your thoughts in the comments below? If you like this video, please like subscribe and share That’s all we have for now until next time this is La Coste grow

Leave a Reply

Your email address will not be published. Required fields are marked *