All about the buy: Real Estate Investing From my last blog post you may have seen that I have found the wealth vehicle in the form of real estate. I used to think that RE was for the extremely rich to get richer, well it is, minus the only part.
See real estate is for everyone.
It doesn’t matter your income today, what matters is how much you want your future income to be. Real Estate is a proven wealth builder when done wisely. You can get started in RE with no money or with a pocket full of cash doesn’t matter, admittedly having cash makes it much easier. Let’s look at the rest of us who don’t have a pocket full of money what is it that we can do? Some people have decided their 401k isn’t as safe in the stock market as it would be in a self directed 401k investing in turnkey rentals head IRS rules here!
Other people can do some equity stripping from their current residence to purchase properties which when done correctly can be a way to protect your house from lawsuits. But what about no money? That’s not necessarily a game stopper. Bad credit, makes it tougher but still attainable.
If there is a will there’s a way.
Banks or private lenders will evaluate LTV.
Loan To Value is a critical thing in the REI world. This is how much money the bank will loan you on a property due to its value. Usually 80%. So theoretically 80k on a 100k house.
For most people they look at this number like a homeowner.
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Like the have to come up with $20,000+. For me I see 80k. If I buy that property correctly I instantly have equity. You can see the obvious benefits of this. Say I buy a house “worth” 100k for 40k, it’s now the house that the bank is trusting with their money not me so much.
Spend right on rehab, put a renter in, hold for a year and strip equity or sell and do it again.
If you know somebody that is looking to sell a house fast for cash in the Wichita, KS metro area have them give me a call, I’ll try to help out.