Re: Credit Line/Legal Advice - Posted by Ronald * Starr
Posted by Ronald * Starr on October 11, 2001 at 22:23:32:
I can not give you legal advice as I am not an attorney.
However, I do have fear so maybe that makes me qualified to give you advice about real estate investing.
I think that one of the biggest deterrants to many people investing in real estate is fear. One of the most common fears in humans is the fear of the unknown. And often this fear is unrealistic, unreasonable, and stops you from acting.
I would recommend that you plan to spend about a year to a year and a half studying up about real estate investing. Maybe take some classes at community college which are aimed at those planning to get a real estate licence. Read books and newspaper articlea about real estate and investing. Read postings on the Main Forum bulletinboard of CREONLINE.COM . You can learn a lot. As you read try to think about investment approaches that make sense in your location. And, even more important, in my opinion, feel comfortable or even exciting to you. Try to find one or two approaches that play to your personal strengths, interests, experiences, background, personality, and the like.
If you are at all positive about real estate invseting, after a few months you probably should start looking a properties in the area where you are considering investing. Your objective, I feel, is to learn about the different neighborhoods, the prices of properties, and what the demand for purchase and for rental properties is.
There is no need to rush. You will age at the same rate whether you are studying real estate investing or not. But, if you study, you will be very much more knowledgeable a year from now. Then your “real estate investing is unknown” fears will lessen and you can evaluate more clearly whether real estate investing is something you want to do. Not everybody likes it. No disgrace in that.
When you are more knowledgeable, you will probably be able to answer the question about lines of credit yourself. I like them because as I pay them down I am building up more opportunity to borrow in the future without having to go through more loan applications. They are easy to tap into. You also pay interest only on the amount that you have borrowed at any one time, not the total limit. However, the interest rate can be higher than for conventional amoritizing loans.
I suspect you will find that real estate can be a safe investment for the careful person who does not pay too much or get stuck with very high loan payments.
Whether it is for you, I can’t comment now.
Good Investigating**Ron Starr