Definitely requesting some advice!? - Posted by Jay PHX

Posted by Jim IL on June 22, 2001 at 17:51:41:

Jay,
Well, okay, lets look at what you said here a minute.
You said, "I don’t think I can get another property as long as I’m making payments on this one…"
Guess what?
You are right!
If you think you can’t, then you are right.
Same as, if you think you CAN, you are right!
Someone here says something like this often in his posts.
Anyway, why do you think you cannot buy another home while paying on this one you have now?
Trust me, it can be done.
Heck, many of us here do it all the time.
Would I advise someone to get into REI with NO money and NO credit to use?
No!
But, I would not stop them from doing it either.
It seems that the best course of action for someone with limited or no cash on hand is to do something to make some cash and buy some courses.
While you are working at whatever to make this money for education, keep reading here, and also goto the public library and gather as many books as you can find about REI.
This way you can see all the different ways to invest, and decide which way you want to go.
After that, start marketing, and the calls will come.
After enough calls, you will get some deals, IF you are educated as to how to structure them.
L/O’s seem to be the easiest way for someone with limited resources to get started, so try that if you understand them.
Bottom line is, when you talk to that first truyl motivated seller, having cash and credit available simply will not come up.

Good luck, and go get em,
Jim IL

Definitely requesting some advice!? - Posted by Jay PHX

Posted by Jay PHX on June 22, 2001 at 14:05:53:

Hello All,
I’m fired up about getting into REI but unsure of what to do because of my situation. I just purchased a brand new home $130,000 mortgage. No play in my financial situation whatsoever now! I want to buy another home, maybe Rehab or L/O. No way in hell I can qualify for another payment, little cash on hand but decent credit. There is a home almost exactly like mine (different elevation) up for rent across the street. It’s been on the market for a couple of months now, hasn’t been rented. This makes me very unsure of whether trying to rent mine would be a good idea.

However, I called the listing broker to obtain info about it. If it does rent for the amount they’re asking and I listed mine for the same amount, I would make about $120/mth cash flow. My current PITI & HOA is $1143. I purchased the home with only $700 out of pocket thanks to the builders HART program. It is in a brand new subdivision that isn’t even 50% completed yet. The area is one that is building up somewhat rapidly but on the outskirts of Phoenix. I think getting a renter for that amount is going to be very difficult. Should I consider a L/O? I don’t know that I want to sell though. I have about $6-7 grand equity in the property as is, not a lot but something :slight_smile:

I don’t think I can get another property as long as I’m making payments on this one without some other steady income. This message seems to be getting long and I could go on & on about all the details of my financials etc. Anyone have any ideas on what my next move should be?

Excellent board & thanks in advance,

Jay Gray