ENT 114 Real Estate Investing 101”

Talking about buying a house that was foreclosure.

Look at the facts, be logical try not to become emotional about things. Don’t see it as worse than it is look at the numbers and know what the facts are.

Most of what I have heard banks require 20 % down.

30 to 35k  renting it around 500 is it worth it when you might pay a mortgage of $400.00?

Don’t forget your probably paying more that just the $400.00 a month Mortgage. Your probably paying close to $50.00 a month for insurance on the property and then $50.00 for land takes so your actually probably paying $500.00 a month and your brining in $500.00. So your actually going in the hole until you sell it if that makes sense.

Mortgage then your paying interest

Your paying so much in insurance and your paying land taxes.

Talking about investing and hoping for 10% on your money.

Patrick talked about fundrise.

You find your leverage point. What do you have the most of money or knowledge? If you don’t have the money you need to use the knowledge. Which means you may be doing a lot of the work yourself. If you can generate a lot of money from your job maybe you can afford to hire people and scale it. A lot of time it comes down to finances. In some way shape form you need financing.

I’m not saying you cannot get no money down. Some people use those techniques.

What I’m talking about is finding 20% and putting it down because that generally is what a bank requires to secure the loan. Some may do better but a lot wants you to be on rental property no more that 10 years which is 120 months other banks may do a lot more but local banks may only want you to have a note for 10 years.

If your looking to invest in houses there are definitely different ways to do it but I think most of the time it comes down to funding. A lot of people look at it if they can get the money just get another house to rent. I don’t really like that philosophy most of the time. Just because you can get the money from a loan I don’t think necessarily you just get it to put toward something else. There are ways to make money faster. I like taking the slow and easy approach.

I think it is smart to always build yourself a way out if you can. For instance if you buy a house. Making sure you buy at a real good price, then fix it up some that it is worth a lot of course that takes money but if you have done your job well if you ever wanted to get out of the rent game you may be able to sell it for more than you bought it for. Here is another thing. If you have value you have added to the house now you may be able to borrow against the house to purchase another property for almost no money down besides refinance charges. Long story but sometimes that is a option. Another thing is sometimes bank offer lines of credit.

In my opinion sometimes it is a good idea to put down 50% down on the first house and if you cannot do that maybe you should either save the money or put it in something that makes you a good interest rate until you can do something that might make you more money later.

1 thought on “ENT 114 Real Estate Investing 101””

  1. Realestate is a good long term strategy. Sometimes when were young we think we want live to when were old. A long time ago and man told that is like playing against yourself. You don’t know what the future holds. The point is if you start saving for long term you will probably have a lot more than average when you get there. Sometimes you don’t get there over night but if you start saving and then investing a little bit that little bit can turn into a lot over time.

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