2.
Re: real estate investors Dec 18, 2008 6:34 PM
Your idea is admirable, but without any funds to put into a real estate deal or a credit history, you won't be able to get a loan unless someone who is creditworthy is willing to guaranty your loan and put up the cash (20% minimum for most investment properties). You also need to become well versed in evaluating investment opportunties so you don't end up with a deficit cash flow situation. Aside from the mortgage payment, typical costs include maintenance, taxes, insurance, major repairs that need to be done upfront. You also need to allow for vacancies. DO NOT buy with the strategy that you'll sell if for a profit in a few years...that's just asking for trouble.
Jut as an FYI, rental property management doesn't necessarily mean you have to be a real estate investor. Managment companies typically manage properties that someone else owns. I think a good way to learn that business is to try and get a job with an existing management firm. A lot of people have lost a lot of money in this market because they wanted a piece of the hot real estate market. It's not as sexy as jumping right into investing, but working for someone else will allow you to build some knowledge before you being risking your own money on real estate deals.
