Lux Investing

How can I get started in real estate investing without much money?

I am 24 years old, I graduated from college last year. I work as a contractor right now with some guys. I really want to be a real estate investor. I want to start with small rental properties, but all the money my wife and I make pretty much pays the bills and we don't have much left over. Also, I never know how much I will make each week because work is unpredictable, so I know a conventional loan is pretty much out of the picture. Any advice anybody?

Public Comments

1. Patience and Perseverance. BUILD your credit rating, SAVE for down payment. You need 3.5-5% down for most purchases. 0% down are a very BAD idea and gone now. If you buy property as investment, you need MUCH higher down payment and pay a higher rate. So start with a twoflat that you will live in, build up equity and buy another property later.
2. My advice is to live a lifestyle below what you make. Save the difference and come back to the idea of investing in real estate when you have the money to put at least 20% down on a property. Also, stay out of debt. Drive used cars and pay cash for expenses, debt will cripple your ability to save and invest. Sorry, but you can't buy investment property without money and a steady income, at least not anymore.
3. Build your credit. Buy used and save the difference. It is very hard to buy a house with out a great credit score and a stable job. Also your debt ratio has to say low.
4. here is the truth. you will need 25% down to get a loan and you must prove stable income for at least 2 years and also have not less than 6 months reserves in the bank for investment property. When you get there and have 720+ credit scores then go for it I am a mortgage banker in TN
5. You can get the help of a leasing agent or finance agency. The leasing agent is a best option as you are not interested in the conventional loan.