Would Appreciate The Expertise Of The Experienced
I just finished a refinance and got back about $39000, my bank also lending me a about $10000 at 2%. My sister has to pay her tuition and i got to help her, and I want to buy a multifamily property where my brother can live in one unit and then rent then we rent the others-- the problem is that all the properties I see in Bronx area dont measure up with the 1% rule- I am also finding it difficult to find pre forclosures and dont know yet how to fully jump into rehab projects. Assistance and advise would be appreciated
With your refinance money... Keep looking for those properties... something should pop up. Be prepared to work fast when it does. You might have to make an offer that day.
In regards to your sister's tuition, and this is not to sound cruel, but is there anyway she can take out a student loan rather than you paying for her college at this moment. Food for thought. Most student loan rates are lower than any real estate loan that you could get and payments are not due until 6 mos or so after she finishes college. It's been awhile, but I don't think interest accrues until the student is out of school. Maybe you could still pay for your sisters college by having her take out the student loan, but you make the payments when she gets out of school rather than loaning her the money right now when you might need it to buy another place.
It's great to be generous to family... but if you can, why not make the payments for it later.
Are you seeing any prices that you can handle with you newly aquired funds?
If some happen to be rehabs, most of the time you will get your better deals there. You'll need to get several estimates for the renovations to know haw much you would be in for . This will tell you if you can swing this deal.
If you have property identified, try and get renovation quotes first. Or see if you can get the seller to allow you to have your partner (The contractors) view the property before you make your final decision.
This can be done in the form of a offer, with you a way out if your partner doesn't agree, if the funding falls through, etc... Get the idea...
Starting out succesful in RE Investing and at the same time using those same resources to keep your family happy are not a good foundation for a succesfull career as an Investor.
Are you willing to evict your brother if the need arises?
If your main concern is to provide for your family, by all means do so. It is a beautiful thing. I seriously recommend however you formulate your RE objectives at a different level. Chances are you'll find that you will be faced with some tough situations as an Investor, and it is better to have to deal with them objectively, without the emotional aspects being involved.
Just my 5 cents worth...
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Luctor et Emergo[ Edited by Hawthorn on Date 12/27/2003 ]
I definitely like the responses tha you guys gave. yes I'm looking into the student loan thing for my sister. My brother is going to be a partner in terms of putting up money for the upfront cost so he is not going to be living for free. he is a quasi partner- ala collecting the rents and also putting up additional cash for offers.
Does any one know any good contractors in the bronx who are willing to go with you to a property and give you a honest estimate of cost of repair-- pls respond