I won't get too analytical here but I would suggest, as others have, that you start with a good lender so you know what you can qualify for. The best advice I will give you from there is to ensure you have liquid assets available after you close escrow. I've owned my own brokerage business for over 30 years as well as a property management business and a broker/dealer. Do not over leverage yourself and be sure to have money available for repairs, some of which can be expensive, as well as periods of vacancy. Do not buy the cheapest home you can find in a worn out neighborhood just because of the price. If you want to maximize your capital gain, go where people are eager to own...not rent. Good luck.
1) Are you looking to flip or hold?
2) Do you have a corporation or anything set up? Flipping or holding will depend on the entity you get.
3) Do your homework. If holding find an area do the research on the rents and then from there is is all about numbers. If you are flipping, you need to be well versed in the market, you don't want to get stuck with an FHA buyer and have to hold a property for 90 days and have the market crash around you and now you are stuck holding a property that doesn't cash flow.
Good Luck - there is a lot to consider. If you answer the 1st question then I would have a better understanding and be able to assist you more.
The lending standards require adequate income and verifiable assets as well as excellent credit. You need all 3. Millions of people have excellent credit, but are only two paychecks away from being broke.
Bob Kiyosaki offers loads of incorrect information in his speeches and books. Such as his ridiculous definition of what an asset is and what a liability is. Consider him for the entertainment and motivational value, not so much for his practical advice or his definitions. The time you wasted reading Kiyosaki would have been better utilized watching Judd Apatow movies. Go to the John Reed link below if you want to see a more critical opinion of Kiyosaki's career.
I am a Realtor who also invests. But I strongly disagree with Kiyosaki on the idea that you need to use an agent who is also an investor. It is OK if you do, but it is not necessary. You need an agent who cares about YOUR investment choices. For example, I was as good an agent for my first twenty years when my only investment was my residence as I am now.
I don't know if Erin has any real estate investments. But I do know she is one smart cookie, and considers the fiduciary interest of her clients to be very important.
And Please, please, do not be taken in by junk books by Robert Allen, Carleton Sheets, Robert Kiyosaki and the like.
I am a mortgage broker. If I can be of service, please let me know!
877-238-6324 Ext 704
Investor financing is a tricky beast these days. Lending standards have really tightened for investors. You MUST have 20% down unless you plan to entertain some non-conventional non-conforming options.
Your best place to start is to meet with a loan officer who can review your income, assets, credit score, etc. and let you know what your financing options are. I highly recommend you contact Marlena Olson with the Vitek Mortgage Group at 916-486-6931. She can assist you with this process.
Much luck to you!
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