The first thing you need is an incredible credit score in the high 700's to low 800's. You also must have capital or other collateral that you can turn into cash such as investments, retirement account money etc. However since you are a college student you don't have the rescources to fall back on right now. It sounds like you want to do way too much too soon.
You are interning with an investor, why not stay with that firm with a partnership goal? Have you even discussed your future with anyone at the firm where you are interning? I would do that first as these people know you and what you are capable of.
DD, I appreciate your response. I have discussed my ambitious and future with the company but they didn't seem interested. You said that it sounds like I am trying to do way too much too soon, thus what actions would you recommend given my situation?
Since you are young and obviously have only yourself to worry about...start building a war chest. This was chest should contain a high credit score and capital.
What kind of credit do you have? Can you open one small credit account, pay if off quickly or get a credit card and pay off the balance each month? You have to have credit history. Next start saving X dollars from each paycheck.
Are you living in a 1000 a month apartwhen you could be living in a 600 a month place? Look at your lifestyle and see where you can cut and then put that money in the bank as well.
Savings accounts do not pay any interest, but when you get 10,000 saved you can go to a CD savings format, rolling the principal and interest over every 12 or 24 months.
Find a banker, a local banker and become his/her friend. Take your raggedy (in the beginning) business to this bank and let them see how you grow and manage your money. In a few years you will have your nest egg and the beginning of your empire, (I always think BIG) and you will have a banker in your corner. This is SO important...I cannot stress it enough. A banker who likes you and how you manage your finances will approve lines of credit, loans and other financial instruments in half the time of other customers. If you can find a locally owned bank all the better. Stay away from the bigger names, their personnel move and get promoted too often and there is no chance to establish a personal relationship.
Meanwhile, start a business plan. Plan out your new company, make changes where you need to as time goes by; your plan and mode of attack will be constantly changing.
Also something to consider is a property by property data set for initial price, upgrades, financing etc. You can come up with your own formula to determine if a property is worh it or not. Always let the data be your guide not your eyes or the excitement of a realtor looking to make a sale.
You also may want to think about a real estate class and then maybe a brokers license as well. You can become a one stop shop and keep that 6% for yourself.
Bottom line ... get that war chest full:
Real estate license/brokers license
I am a college student majoring in business at a college in Massachusetts. I am looking to start a residential real estate investment firm soon. I have already created a business plan. In addition, I went to visit SCORE where I received some great advice. Also, I have joined my local Real Estate Investors club.
I have thouroughly studied the real estate market in Massachusetts. Futhermore, I have interned with a local real estate investment company for approximately two years.
In regards to the firm I am looking to create, since I am a college student my firm will not have a lot of start-up capital. I understand that this means my investment options and strategies are going to be very limited; however, I would like to take advantage of strategies such as short-selling, wholesaling,etc. In order to purchase properties at a minimal cost with the intent of selling them shortly after for a profit.
I am seeking any advice from real estate professionals, especially seasoned investors, realtors, attorney, or any other real estate entrepreneurs. In particular, I am seeking advice in terms of what steps I should take next, what strategies may work best, tools I may find useful, etc.
Also, I am interested in anyone who is willing and able to mentor me through this process.
Any advice would be helpful,
Thanks in advance,