OK, Here's my plan

[scottneedsadvice]

What I am going to do is begin with buying my own home , preferable one that needs to be rehab'd. I'll get one with a basement appartment. If there is none, I'll add one.

While I'm living in this house and the tenants are downstaris paying my mortgage, I'll take my money and invest it in upgrading the house (thanks for the 10 day rehab Dan)

Once all the rehab is settled, hopfully I'll have enough to either get a second house or I'll rent out both the upstairs and downstaris or the current house and move to another house and start the same process again.

In the long run, I'd like to start rehabing houses for the cash so I can pay off the above ones. I'd also like to get into Duplex's Tri's and fourplex's when the money gets ok. If I ever get good enough, maybe I'll buy some store front units and lease them.

I'm 31 now, I don't want to be working for other people anymore!!!!!!

Oh, one small problem. We can talk about doing it all day, however action is the key is it not??

The reason I haven't started yet is because I'm about $15,000 in personal debt right now. I am very motivated to get rid of this debt then work towards getting a downpayment on the first place.

Let me know what you think of the plan

[Dan Auito]

Any plan is better than nothing Scott so you are ahead of most folks who only dream about what you are about to go and DO! Action is the key to success but then again the right action makes all the difference. I think you have the (my) book Scott so read it cover to cover and use that information to save yourself from getting burned early.

Regarding your debt, It still pays to go to a local lender and ask them to pre-qualify you for whatever loan you can qualify for, this process lets you get an idea what you can afford and what credit issues according to the reporting agencies and your lenders guidelines that you will need to get cleaned up.

While doing all of this, you can also be reading and getting familier with what is available in your local area regarding real estate and general prices, you might also attend an investors meeting and search out seasoned local investors to network with and bird-dog for in the meantime.

Hint, If you can find a rundown property with a seller who has held it a long time, you maybe be able to trade your labor for the downpayment with the seller holding the mortgage privately until you can qualify, Don't rule out getting creative with the nothing down deal philosophy as it can get you on the road to wealth quite effectively when a sound plan is devised and communicated to a serious don't wanter.

Keep us posted and feel free to keep those questions coming! :SM135: :SM056: :SM025:

[scottneedsadvice]

Dan, I forgot to mention.

The reason why I'm in that much debt is because I was out of work for about 3 mnths and had no other way of surviving other then to put everything on credit.

I did finally break down and get a job that is totally unsuitable and pays little.
I don't think right now is a good time to go and find out how much I'm qualified for as they'd probably tell me that I'm qualified for very little.

I am determined to however topay off my debts. Hopefully find a better paying job and then get on this ASAP :smiley:

Thanks again for the advice.

Will keep you all posted and busy with many questions along the way.

[Dan Auito]

Dan, I forgot to mention.

The reason why I'm in that much debt is because I was out of work for about 3 mnths and had no other way of surviving other then to put everything on credit.

I did finally break down and get a job that is totally unsuitable and pays little.
I don't think right now is a good time to go and find out how much I'm qualified for as they'd probably tell me that I'm qualified for very little.

I am determined to however topay off my debts. Hopefully find a better paying job and then get on this ASAP :smiley:

Thanks again for the advice.

Will keep you all posted and busy with many questions along the way.

Think bird dog and education, you'll be well positioned to take advantage once you get squared away! Prepare to achieve. :thumbsup: :SM140: :SM007:

[Aldo]

Scott, first let me say that I have a reputation for calling 'em as I see 'em and intend no disrespect.

I admire your ambitions and dreams, and know that you will succeed for having them. In my opinion, the timing is not right for you. You have substantial personal debt and are working for less than you are worth. You need to change that. It won't be easy in today's job market, but you need to find a better paying job. Next, latch onto one of those credit card promo offers for a low- or no-interest credit card and combine your debts to that card. When the promo expires, latch onto a new promo.

You mention buying a SFH and adding a unit in the basement. That's cool if you can get it past local building codes. The next problem is getting it past the lender. The lender will not even consider the potential (if legal) second unit.

You appear to have the desire and drive to succeed and I wish you well, but you really need to take a hard look at your position as a borrower.

[scottneedsadvice]

(You have substantial personal debt and are working for less than you are worth. You need to change that. It won't be easy in today's job market, but you need to find a better paying job.)

I look dayly for other options and I'm sure that I WILL find something in the next few months

(Next, latch onto one of those credit card promo offers for a low- or no-interest credit card and combine your debts to that card. When the promo expires, latch onto a new promo.)

WAY a head of you. I also have a line of credit and the interest on that is very low compared to the 18% credit cards. I take everything I have on the credit card and transfer it over to the Line of credit. This does 2 things for me, 1.) Gets the money I owe onto a better intrest rate repayment plan.
2.) Keeps the credit score up by quickly paying off the credit card ;)


(You mention buying a SFH and adding a unit in the basement. That's cool if you can get it past local building codes. The next problem is getting it past the lender.)

I'll ofcourse check into the building codes long before I do that phase of my plan. As for the lender. I'm hoping to get the money for the house before I mention to anyone that I'm putting an appartment into it.
All the lender will need to know at that point is that there getting their money each and every month.

(You appear to have the desire and drive to succeed and I wish you well, but you really need to take a hard look at your position as a borrower.)

I agree, that's why I'm going to be spending the winter getting rid of this personal debt and looking for a better paying job. I feel, like Dan said, that during that time I should collect as much info as possible and for that reason I've been searching the web daily for as much info as possible. That include posting questions and Ideas here on Magic Bullet!!!!

Have you ever gotten to the point in your life where you actually realized that if you don't do something with your life, that you are just destined to repeat the life you have been living???? That time is now!!!!!

Thanks for coving my back though :)

[OKRICHLAND]

Hello Scott,
OKRICHLAND here.
you mentioned buying a home and putting in a basement apartment.
I can see the ambition in your attitude.
Let me get straight to the point;
As a seasoned remodeling contractor, I know just how much materials cost.
I also know what's involved in adding living space to a completely void location.
There are several different aspects involved, assuming that you are not a builder yourself.
#1 Building Permits and codes.
#2 Hiring your crews.
#3 building a bathroom from scratch and tapping into the sewer main.
#4 Building a kitchen from scratch.
#5 Hooking up your water and waist lines for both kitchen and bathroom.
#6 Buying all the kitchen cabinets, counter tops, and all of the bathroom fixtures such as bathtub, sinks, toilets and then paying to have them all installed by professionals.
#7 Building all of your partitions, doorways and separate entry location.
#8 Your basement unit must have an egress (escape window) that is in line with local codes, Not the small windows that come with most basements.
#9 Taking the time to check on your crews to make sure that they're working and doing the jobs that you want done.
You cant take time off of a new job to do this.
#10 Having enough money on hand to pay for all of your overage expenses
and Crews. (These projects never cost what you thank when starting).

If I were you, I would start small.
Find a duplex where everything is in place and you just have to replace a few things. Mostly cosmetic.
Your bank will be looking mostly at the roof, foundation and exterior.
You might even think about buying a single family home, Repairing the cosmetics then flipping or refinancing and building your equity that way.

**What you don't want to do is get into a situation where you are in over your head and become discouraged halfway through the project.
This can happen very easily when a new comer is building from the ground up on his or her first project.
As you progress in your new career there will be up's and down's but for now
lets start off easy as you are learning the ropes.
Good luck in your new venture. :thumbsup:

[scottneedsadvice]

Great info :)

I was actually, today, mulling over the Duplex Idea. Thinking 'Hmm' Why don't I just get one already done up!!!! It will save me a lot of building expenses and I can get right to renting.